On Thursday, TMZ Sports reported Oakley tried to remove a $100 chip from a wager after realizing he was going to lose. A source close to Oakley, who is the head coach of the Killer 3's in the BIG3 basketball league, told TMZ it's "an insignificant matter that will be quickly resolved."
He faces one-to-six years in prison if convicted in the case, according to the report.
The incident came two days after Oakley coached the Killer 3's in a 51-49 loss to the 3 Headed Monsters at Oracle Arena in Oakland, California.
Nevada Gaming Control Board officials confirmed to TMZ that the longtime New York Knicks standout was "suspected of adding to or reducing his wager on a gambling game after the outcome was known," which the casino's security team is said to have later confirmed via video.
Oakley played 19 seasons in the NBA before his retirement in 2004.