Former NBA star Gilbert Arenas, 43, was arrested on July 30 and federally indicted in connection with an illegal gambling operation allegedly run out of his rented Encino, California, mansion. The indictment, unsealed by the U.S. Attorney’s Office for the Central District of California, charges Arenas with conspiracy to operate an illegal gambling business, operating an illegal gambling business, and making false statements to federal investigators. If convicted on all counts, he faces up to 15 years in prison.
More Than A Friendly Game?
Arenas, a three-time NBA All-Star, is accused of hosting and profiting from high-stakes poker games at the luxury property. Prosecutors say the operation included raked poker games such as Pot Limit Omaha (PLO), hired chefs, valets, armed security, and women who served drinks, provided massages, and offered companionship to the players.
PLO is a poker variant where players are dealt four hole cards and must use exactly two of them, combined with three community cards, to make their best five-card hand. A raked game refers to a cash game where the house takes a percentage of each pot as a fee for providing the game
Investigators allege that a portion of the women’s tips was collected by the organizers, further implicating those involved in profiting from the games.
According to the indictment, Arenas directed Arthur Kats, 51, to manage the events. Kats allegedly staged the home for gaming, recruited co-conspirators, and collected rent on Arenas’ behalf. Prosecutors cited text message exchanges between Arenas and Kats discussing the logistics of hosting the games, managing intoxicated guests, and addressing financial matters. One photo included in the indictment even shows a custom poker table emblazoned with Arenas’ name and likeness.
Arenas, who is out on $50,000 bond, has stated, “This ain’t got s—t to do with me.”
In addition to Arenas and Kats, the indictment names five others: Yevgeni Gershman, described by the Justice Department as a suspected organized crime figure from Israel; Evgenni Tourevski; Allan Austria; Yarin Cohen; and Ievgen Krachun. Each of the co-defendants is charged with conspiracy to operate an illegal gambling business and operating an illegal gambling business. No attorneys for these defendants were listed in court documents.
The Arenas case comes amid much larger scrutiny of professional athletes tied to gambling activity. In a separate but equally headline-grabbing incident, NBA veteran Marcus Morris Sr. was recently denied bond in a Florida courtroom after being arrested for allegedly failing to pay a casino debt in Las Vegas. Morris, 35, was taken into custody at Fort Lauderdale-Hollywood International Airport and is being held on a fraud charge related to an insufficient funds check. His attorney claims the issue stemmed from an unpaid casino marker exceeding $1,200.
Cases like Arenas’ and Morris’ highlight the legal gray areas surrounding gambling in the U.S. While “social games” played among friends without a house rake are often legal, hosting raked games, charging admission, or employing staff — especially for profit —crosses into illegal territory in many jurisdictions, including California.
If the game is organized for profit, such as charging an entry fee, it can be considered illegal gambling, even if played in a private residence.
Gambling laws vary wildly from state to state. Some states may have stricter regulations regarding home poker games than others. In Hawaii, for example, all forms of gambling are illegal, including home poker games.
