On Wednesday, the U.S. Attorney’s Office for the Central District of California announced that former NBA star Gilbert Arenas and five other men have been arrested for operating an illegal high stakes poker game in California.
Arenas faces serious federal charges including:
- One count of conspiracy to operate an illegal gambling business
- One count of operating an illegal gambling business
- One count of making false statements to federal investigators
According to the USAO’s press release, Arenas allegedly rented out an Encino mansion that he owns specifically for hosting these underground poker games.
The operation was sophisticated and well-staffed. Arthur Kats would stage the mansion for the games, recruit what the USAO calls “co-conspirators” to host the games, and collect rent from those co-conspirators.
The alleged co-conspirators named in the indictment include:
- Yevgeni Gershman – Managed high-stakes Pot-Limit Omaha games and collected rake
- Evgenni Tourevski – Assisted with game management and rake collection
- Allan Austria – Helped manage games and collect rake
- Yarin Cohen – Involved in game operations and rake collection
- Ievgen Krachun – Served as chip runner, tracking player wins/losses and paying employees
Most concerning, Gershman, who the USAO says is suspected to be a high-level Israeli mobster, also recruited young women who “in exchange for tips, served drinks, provided massages, and offered companionship to the poker players.” The game organizers took a cut of the ladies’ earnings.
Why Would Gilbert Arenas Risk Everything for Illegal Gambling?
This raises a fascinating question: why would a former three-time NBA All-Star who earned over $160 million in salary risk his reputation and freedom for an illegal poker operation?
At best, we have Arenas being foolish and taking a rake from private home games. These were high-stakes, elaborate, nearly-professionally run operations, but still technically home games. At worst – and this requires some speculation – he was working with shady characters connected to overseas criminal organizations and potentially involving himself with prostitution, depending on how we interpret “offered companionship.”
The Money Theory Doesn’t Add Up
Some suggest Arenas must have squandered his NBA fortune, making this illegal gambling business a desperate income source. However, this theory seems unlikely for several reasons:
- Running an underground poker game is an extremely complicated way to rebuild wealth
- Arenas currently has a popular basketball podcast, showing legitimate earning potential
- There would likely be demand for his basketball analysis and entertainment services
- The legal risks far outweigh potential profits
The Real Motivation: Thrill and Power
My analysis suggests Arenas was likely motivated by the thrill of operating outside the law and the power dynamics involved. Consider these factors:
The Rush of Illegal Activity: Arenas may have enjoyed the excitement of doing something that wasn’t quite aboveboard, working with people who might not have the cleanest records. He was essentially living out a movie scenario.
Power and Control: This was his house, presumably his rules, and everyone had to answer to him. The psychological appeal of being the boss of a high-stakes operation shouldn’t be underestimated.
Passion for Poker: Arenas enjoys poker – the image at the top of this article shows him playing in the WPT Cash Game at the Wynn. Running his own exclusive game with high rollers, possibly playing in it himself, would have been incredibly exciting.
What This Means for Gilbert Arenas
Of course, this analysis is speculative. The reasons behind these illegal gambling operations can be complex and varied. Currently, it appears Arenas is only being charged with crimes related to running an illegal poker game, so the legal consequences may not be as severe as they could be.
However, the involvement of suspected organized crime figures and the sophisticated nature of the operation suggest this case could develop into something much more serious than a simple illegal gambling charge.
The fall from NBA stardom to federal criminal charges serves as a cautionary tale about the dangers of seeking thrills through illegal activities, regardless of one’s wealth or status.
Image credit: Flickr.com / World Poker Tour
