The 2007 NBA betting scandal was a scandal involving the National Basketball Association (NBA) and accusations that an NBA referee used his knowledge of relationships between referees, coaches, players and owners to bet on professional basketball games. In July 2007, reports of an investigation by the Federal Bureau of Investigation (FBI) were made public, which alleged that during the 2005–06 and 2006–07 NBA seasons, referee Tim Donaghy bet on games in which he officiated.[1] Donaghy later admitted to betting on games he officiated in each of the 2003–04, 2004–05, 2005–06, and 2006–07 seasons.[2]
Donaghy has claimed that instead of using his position as an on-court referee to advance his bets, he exploited his insider knowledge to wager on NBA games, regardless of whether he was officiating them. However, some of Donaghy's co-conspirators cooperated with the government and claimed that they only became involved because Donaghy offered a high win rate on the games which he officiated. Similarly, Donaghy's best friend, Tommy Martino, noted that during most of the scandal's four-year span, Donaghy only offered bets on games which he officiated. Furthermore, Donaghy's betting predictions for the outcomes of games which he did not officiate were typically incorrect, so the co-conspirators generally avoided placing bets on such matches.[3][4][5][6] Researchers with access to Donaghy's offshore betting accounts, electronic betting records, and betting line data have demonstrated that most of the betting activity involved games officiated by Donaghy.[7][8][6]
On August 15, 2007, Donaghy pleaded guilty to two federal charges related to the investigation. In 2008, he was sentenced to 15 months in prison and three years of supervised release.