Federal Investigation Uncovers Major Sports Betting Scheme Tied to North Carolina

A widening sports betting scandal tied to North Carolina connections is shaking the college basketball world as federal investigators uncover a massive point-shaving and illegal gambling scheme involving players, gamblers, and recruiters.

Federal prosecutors say the scheme involved dozens of athletes and gamblers manipulating the outcome or scoring margins of college basketball games so that large bets would pay off. Authorities allege that more than 39 players from at least 17 NCAA Division I programs were connected to attempts to influence 29 games during the 2023–2025 seasons.

Investigators say the scheme revolved around a practice known as point shaving, where players intentionally underperform so their team fails to cover the betting spread while still possibly winning the game.

North Carolina connection

The investigation has strong ties to North Carolina. Prosecutors say Charlotte-area trainer Jalen Smith helped recruit players into the scheme by using his connections with athletes. Smith allegedly offered players between $10,000 and $30,000 per game to manipulate performances so gamblers could profit from large wagers.

Smith recently pleaded guilty to wire fraud and bribery charges in federal court, becoming the first of more than two dozen defendants charged in the investigation to admit guilt.

Authorities say the operation generated millions of dollars in illegal betting profits, with fixers placing large wagers once players agreed to influence the games.

Local athletes implicated

Several players with North Carolina ties have been named in court documents, including former college players from schools such as North Carolina A&T and other programs around the country. Investigators say some athletes were recruited through personal trainers, coaches, and social media connections.

Separate NCAA investigations have already led to sanctions and eligibility issues for some players connected to suspicious betting activity involving college basketball games.

Growing concerns over sports betting

The scandal comes as sports betting has exploded across the state. North Carolina legalized online sports wagering in 2023, and betting officially launched statewide in 2024.

With the industry rapidly expanding, regulators and sports organizations have raised concerns about protecting the integrity of college athletics. Billions of dollars are now wagered each year in the state, increasing the potential for illegal schemes and corruption.

Federal investigators say the probe is ongoing and additional charges could be filed as authorities continue to track the network of gamblers, recruiters, and athletes involved in the alleged betting conspiracy.