The violation is punishable by up to six years in prison and a maximum fine of $10,000 but Oakley is not expected to serve jail time.
Another bad turn for Charles Oakley.
Officials from the Nevada Gaming Board told TMZ that the 54-year-old Oakley 'was suspected of adding to or reducing his wager on a gambling game after the outcome was known'. The team played in Oakland, Calif., two days before the incident and has a game in Detroit on Friday. After security confronted him, Oakley was taken into custody around 5:30 p.m.
Oak's gambling charge is serious business - "to commit or attempt to commit a fraudulent act in a gaming establishment".
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"This is not a significant matter and we expect it to be resolved quickly", Alex Spiro, Oakley's New York-based attorney, told ESPN.
Oakley's Las Vegas arrest comes after a high-profile spat with the Knicks past year following his forcible ejection from Madison Square Garden during a game in February.
The No. 9 overall pick in 1985 out of Virginia Union, Oakley spent 19 years in the National Basketball Association. Oakley later agreed to a plea deal to have the charges dropped and subsequently filed the civil suit.