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State of Play’s TL;DR
- A Los Angeles federal judge has rejected a plea deal in an alleged illegal high-stakes poker case tied to former NBA player Gilbert Arenas’ Encino mansion.
- The ruling keeps a closely watched federal gambling prosecution on track for a November trial.
US District Judge Mark Scarsi rejected a plea agreement for Yevgeni Gershman, 50, of Woodland Hills, during a sentencing hearing in downtown Los Angeles, finding the proposed deal too lenient. Gershman faces charges in an alleged illegal poker contest at former NBA player Gilbert Arenas’ Encino, CA, mansion.
According to the case summary, Gershman had pleaded guilty in April to conspiracy to operate an illegal gambling business, making false statements in immigration documents, money laundering, and weapons possession. The agreement with the US Attorney’s Office called for a prison sentence of no more than two years.
After the judge rejected the deal, Gershman withdrew his guilty plea. He is now expected to go to trial in November with co-defendants.
Prosecutors said Gershman has criminal convictions in Israel. The immigration-related charge stems from an alleged sham marriage intended to obtain permanent legal status in the US. He also allegedly answered “no” on immigration forms when asked about prior detention by law enforcement and intent to engage in illegal gambling or other commercialized vice.
The alleged gambling operation
Gershman, Arenas, and six others were charged in July 2025. The indictment says Arenas rented out an Encino mansion he owned for high-stakes poker games.
Arthur Kats allegedly staged the house, found people to operate the games, and collected rent from co-conspirators on Arenas’ behalf from September 2021 to July 2022. Players were allegedly charged a rake from each poker pot.
The operation described in the indictment went beyond cards on a table. Young women allegedly served drinks, provided massages, and offered companionship to poker players, while chefs, valets, and armed security guards were also allegedly hired to staff the games.
Arenas is best known for his time with the Washington Wizards and last played professionally in China in 2013. In 2010, he pleaded guilty to carrying a pistol without a license after an armed confrontation in the Wizards locker room in 2009 with teammate Javaris Crittenton.
Ruling raises stakes for co-defendants
Prosecutors framed the alleged poker business as an organized operation involving rent, staffing, security, and a rake. That combination is central to gambling law enforcement because it points to a commercial enterprise rather than informal play.
The judge’s rejection of a plea deal also adds another layer. It suggests the court was not prepared to accept a negotiated resolution carrying a sentence of no more than two years, even after guilty pleas to multiple counts.
In practical terms, that raises the stakes for everyone still facing charges in the case and keeps attention on how federal authorities pursue illegal gambling businesses tied to money laundering and related offenses.
Based on reporting by MyNewsLA.com.
