Ex-NBA Star Gilbert Arenas Arrested After Allegedly Running Illegal Gambling Business

3:34 PM PT -- Federal prosecutors say Gilbert Arenas pleaded not guilty to the charges during his arraignment on Wednesday afternoon and was released on $50,000 bond.

A trial date was set for late September.

Former NBA superstar Gilbert Arenas was arrested in Southern California on Wednesday after authorities say he ran an illegal gambling business.

Federal prosecutors claim the ex-Washington Wizards guard, along with five others, rented out his Encino mansion to hold high-stakes card games from September 2021 to July 2022.

The feds allege Arenas hired a 51-year-old to help him stage the place for games and collect rent.

They say Arenas' partners in the biz hired women to serve the gamblers at the residence -- and added a staff of chefs, valets and security guards to make the games more enticing.

The alleged business owners, prosecutors wrote in court documents, profited off it all by taking a rake from each pot.

Arenas and the five other defendants were hit with two charges -- one count of conspiracy to operate an illegal gambling business and one count of operating an illegal gambling business. If convicted on both charges, prosecutors say they're facing up to five years in prison "for each count."

Arenas was also additionally charged with one count of making false statements to federal investigators.

The 43-year-old is expected to appear in court later Wednesday to face the charges.