From the Casino to the CFP
Vaughn Cleared by NCAA, Targeted by IRS — and Still Winning
By The Teal Wave - December 2027
The teal turf of Brooks Stadium has hosted its share of big games, but never a moment like this. Coastal Carolina — once a quirky Group of Six underdog — is now a national contender, fresh off a second straight Sun Belt title and preparing for its first-ever College Football Playoff berth.
Yet when head coach Kade Vaughn stepped up to the podium this week, the questions weren’t just about Bryce Underwood’s Heisman chances or how the Chanticleers would stack up against the nation’s elite. They were about casinos, tax codes, and a funding loophole that has split the sport between admiration and outrage.
NCAA Clears Coastal — But Passes the File to the IRS
Months ago, rumors swirled that Vaughn was funneling his gambling winnings directly to players. The NCAA’s investigation was exhaustive — dozens of interviews, trips to Atlantic City, and a deep dive into the Coastal Sports Collective, the school’s official NIL arm.
Former QB Roquan Barber, whose mid-game benching in last year’s Sun Belt Championship Game fueled speculation, told investigators he was never paid directly by Vaughn but suspected his coach might have been betting on games. The inquiry found no evidence Vaughn — or anyone in his circle — ever placed wagers on the Chanticleers.
“It was made painfully clear from everyone we interviewed that Vaughn drew a strict line at betting on any football games,” read the NCAA’s report, “and expected the same of anyone associated with him or his indirect contributions to the Coastal Sports Collective.”
The verdict: No NCAA rules broken. All winnings went to the Collective, never to players directly. But the loophole left NCAA officials frustrated. Multiple sources told ESPN that when it became clear they had no enforcement path, the NCAA tipped off the IRS — “a parting shot,” according to one compliance director.
IRS Ruling and Financial Penalties
Federal officials later confirmed Vaughn failed to report his gambling winnings before donating them. The penalty was meant to sting but not sink the program:
- Repay his original $1.42 million donation, plus a 15% penalty — about $1.63 million total.
- Prohibited from personally contributing gambling winnings to the NIL fund going forward.
One Sun Belt assistant put it simply:
“Without Vaughn’s bankroll, maybe that NIL machine finally slows down.”
Spoiler alert - it won't.
The Gambler’s Circle Rallies
Within 48 hours of the IRS ruling, Vaughn’s poker cohorts mobilized. Legends Phil Ivey and Daniel Negreanu headlined the Coastal Carolina Invitational, a $50,000 buy-in, invite-only poker event in Atlantic City.
The crowd was a mix of poker pros, hedge fund managers, and “old money” Coastal donors. While cheerleaders worked the floor a DJ blasted “CINO” chants after every all-in pot.
By the end of the night, more than $1.7 million had been raised — enough to pay Vaughn’s fine in full. Then came the bigger reveal: Vaughn had signed a five-year, $12.5 million extension to remain at Coastal. That announcement prompted multiple high-profile players to pledge a percentage of their future winnings to the Coastal Sports Collective, replacing Vaughn’s personal funding stream and keeping the Chanticleers NIL fund head and shoulders above the rest of the G6 teams.
INSIDE THE INVITATIONAL
• Buy-In: $50,000 per player — invite-only.
• Field: 36 elite players from poker, finance, and long-time Coastal backers.
• Winner: Anonymous, but donated 100% of their $480,000 prize to the Collective on the spot.
• Signature Moment: Vaughn arrived late, Sun Belt Championship ring on, tossed a stack of teal chips into the pot, and said, “Figured I’d ante up for the cause.”
Recruiting Through the Chaos
If rivals expected the investigation to kill Vaughn’s recruiting momentum, they miscalculated. Instead of crumbling under the headlines, Coastal’s recruiting has surged. Since the first reports, Vaughn has landed commitments from:
#67 DE Eric Wheat (4*)
#74 DT Lionel Ruggins (4*)
#270 CB Keenan Brightwell (4*)
#274 CB Koren Roche (4*)
#306 G Conor Payne (4*)
#383 QB Andre Koloamatangi (4*)
#414 FS AJ Dwumfour (4*)
#497 QB Tobias Gallimore (4*)
#549 MLB Damon Hakim (3*)
“You’ve got a coach literally putting his money where his mouth is,” said one five-star prospect. “He’s hustling during the week to get us ready, and hustling in his own time to make sure we’re taken care of. Everybody eats? Sign me up.”
Not everyone agrees. Three top South Carolina recruits — DT Joel Wanogho (#190), DT Jose Priester (#330), and DE Andre Mond (#388) — publicly cited “program instability” as their reason for going elsewhere. Still, the Chanticleers’ current class ranks 14th nationally, the highest in school history.
One Step Ahead
“He’s always two steps ahead,” said one Power Four assistant. “Even when he gets caught, he’s already working the next angle. That’s why other coaches can’t stand him — he makes them feel like they’re playing catch-up. And it’s because they are.
“I don’t think he’ll ever be ‘well liked’ in the back rooms of coaching circles — it’s a lot like Nick Saban in his prime. Everyone respected the hell out of him, but that didn’t mean they enjoyed having to compete with him. Vaughn’s the same way. He’s got one priority: winning. If that means the rest of us hate him for it? He’s not losing an ounce of sleep.”
Conference Fallout
Late Saturday, one day after the 'Coastal Carolina Invitational', Sun Belt commissioner Keith Gill announced the league had filed a formal complaint against Coastal, citing “a violation of the league’s Code of Conduct, specifically regarding reputational integrity.”
Gill’s statement pulled no punches:
“While we respect the NCAA’s findings, the actions and circumstances surrounding the Coastal Carolina football program have created significant reputational harm and strained intercollegiate relations within our league. This conduct, while not in violation of NCAA bylaws, does not align with the shared standards of the Sun Belt Conference.”
The conference is formally requesting that Coastal Carolina be reassigned to another FBS league “at the earliest feasible date.” Sources tell ESPN conversations have already begun with multiple commissioners, with a resolution targeted before next season.
Early speculation points to the American Athletic Conference as the most likely destination, with the ACC and even Big 12 as wild cards.
A source close to Coastal dismissed any talk of going independent:
“They want a conference. You want that automatic CFP bid leverage. That’s non-negotiable.”
College GameDay Weighs In
Kirk Herbstreit:
“Look, guys, I’ve been around a lot of unique situations in college football, but this one’s… different. The NCAA clears Vaughn, says he didn’t break their rules, but then hands him to the IRS? That’s new territory. And now, because the Sun Belt doesn’t like the optics, Coastal might not even be in the conference next season. The crazy part? The guy signs a five-year extension the same night his poker buddies basically refill the NIL fund. That’s… unprecedented. Love him or hate him, Vaughn keeps finding ways to win.”
Nick Saban:
“Herbie, here’s the thing — I’ve said this before: you can have a 20-million-dollar roster, but if you’re not paying the right players, it doesn’t matter. Vaughn’s paying the right players. Whether it’s through his own pocket or friends at a poker table, that’s how you build a team. Now, the conference stuff? That’s about control. They don’t like that he’s outsmarted them in public, and they’re trying to take his seat at the table away.”
Pat McAfee:
“Boys, let me tell ya, this is awesome. Guy gets cleared, gets fined, throws a party in the form of a high-stakes poker game, and then BAM — $1.7 million in one night, new deal in his pocket, and a bunch of card sharks pledging NIL money forever. That’s gangster. The Sun Belt’s like, ‘We can’t handle the smoke.’ Vaughn’s like, ‘Cool, I’ll go somewhere bigger.’ ACC? Big 12? American? Somebody’s gonna want this show on their schedule every Saturday.”
Desmond Howard:
“I get the showmanship, Pat, but I think there’s another layer here — the perception problem. Yeah, he’s winning, he’s got recruits coming in, but the Sun Belt’s not wrong when they say there’s reputational risk. A coach funding his NIL with gambling winnings — and now poker pros? That’s not exactly the image college football’s trying to project. The real question is, do the big conferences want that heat, or do they see it as worth the baggage?”
Pat McAfee:
“Oh, Dez, they want it. You think the Big 12 wouldn’t throw a parade if they landed a guy who’s got his own NIL bankroll, a Heisman QB, and a CFP bid? Come on, man.”
Kirk Herbstreit:
“And that’s the chess move here. Whether it’s the AAC or a Power Four league, Coastal’s gonna land in a spot where they have an automatic path to the playoff — and Vaughn’s gonna walk right in with his roster intact. That’s why this is bigger than just a scandal or a fine… this is about where the sport’s headed.”
From the Felt to the Field
Asked if the poker pledges were an intentional workaround to the IRS ruling, Vaughn grinned:
“They closed one door, boys. I went and found a whole casino.”
The man who’s turned teal turf into a national headline machine isn’t slowing down — no matter who’s dealing the cards.
