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."

He said that in addition to hiring an extensive security force composed of former FBI and other law enforcement officials whose job it is to ensure the integrity of NBA matches, the league also retains a consultant in Las Vegas whose job it is to inform the league about whether there is any unusual movement in NBA betting.

Stern said this morning that though Donaghy resigned as a referee July 9, the league wanted to fire him earlier but did not do so because league officials believed it would hamper the investigation.

He pledged to fans that the league would do everything it could to review its security procedures and put the best security measures in place to prevent future betting on games.

"We take our obligation to our fans in this matter very, very seriously, and I can stand here today and pledge that we will do every look back possible to analyze our processes and seek the best advice possible to see if there are changes that are made and procedures that should be implemented," Stern said.

He said that in light of the allegations, a recent scheduled NBA meeting on whether there should be an NBA franchise in Las Vegas was canceled, and that he will consider whether that meeting should be rescheduled later in the summer.

Donaghy has yet to be charged with any crimes. He is said to be cooperating with authorities and is expected to turn himself in sometime between today and Thursday, according to sources familiar with the investigation. Depending on the information Donaghy can provide, the probe, which is currently circumscribed, could widen to include other referees or NBA players.

Two bookies whom Donaghy is said to be indebted to for up to $50,000 are also expected to be arrested and charged in the case, sources said. The bookies -- one from southern New Jersey and one from Pennsylvania -- are described by authorities as low-level "mob associates."

Donaghy said that he has been receiving threatening phone calls to his home, and that local law enforcement officials are staking out his house to protect him, according to the New York Post.