It was not clear what game Oakley was playing at the time.
In a statement provided to the Daily News, the Nevada Gaming Board said Oakley "was suspected of adding to or reducing his wager on a gambling game after the outcome was known".
FYI, Oakley reportedly made more than $46 mil during his National Basketball Association career.
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Oak, 54, was confronted about the incident and after a security team reviewed the casino's video footage it was determined that he had cheated.
In court documents related to the lawsuits, obtained by Newsday past year, the Aria said the 2010 skirmish merely was the latest example of bad behavior by Oakley in Las Vegas. Oakley was booked into the Clark County Detention Center without incident, the board said.He is scheduled to appear in court August 7. If convicted of a first offense, the violator is subject to a sentence of 1-6 years in a state prison and a fine of no more than $10,000.
"This is not a significant matter and we expect it to be resolved quickly", Oakley's attorney Alex Spiro told ESPN.
Oakley played for the Knicks from 1988-98, helping them reach the NBA Finals.
Oakley accepted a deal with prosecutors that eventually dismissed misdemeanor assault and trespass charges against him after he stayed out of trouble for six months. Criminal charges were dismissed in February of this year, but Dolan has banned Oakley from Madison Square Garden for life.