NBA Commish Calls Betting Scandal 'Worst Situation' He's Ever Seen

— -- National Basketball Association Commissioner David Stern was in full damage control mode Tuesday at a press conference that addressed the referee betting scandal that threatened to undermine the league's credibility, calling the allegations "the most serious situation and worst situation" in his 40-plus year career with the NBA.

Stern said the NBA is working closely with federal investigators who believe veteran referee Tim Donaghy bet on NBA games over the past two years and also provided information to others that allowed them to profit from betting on basketball games.

He said he does not know the number of games Donaghy bet on, or whether those bets were placed on games Donaghy refereed or not.

Stern appeared somber and demure as he spoke this morning about the allegations, contritely telling reporters: "I can't believe it's happening to us."

He said that the league's "understanding" is that this is an isolated incident and that no other NBA referees are also suspected of betting on games. The allegations against Donaghy concern his past two years in the league, over the span of which he called 139 regular seasons, eight playoff and four preseason matches.

The NBA commissioner dismissed speculation that the league knew that Donaghy was betting on matches and still let him referee. He said the NBA first heard from the FBI June 20 that Donaghy may have bet on games during the past two seasons.

"I can't think of this as anything but an act of betrayal, of what we know in sports as a sacred trust," Stern said.

Stern confirmed that Donaghy had been investigated in early 2005 after it was alleged that he was gambling at an Atlantic City casino, but the investigation turned up nothing.

Stern spoke extensively about the NBA's security efforts to prevent gambling among NBA referees. He said the league does "educate our referees intensely" about the illegality of betting, including training camp presentations, brochures and security visits.

"Our rules are crystal clear that referees may not gamble on our games or provide information to anyone about those games," he said. "We have a rule that says that you're subject to discipline, which will most likely be expulsion from the league and the job."