(FORTUNE Magazine) - Gary Bettman, commissioner of the National Hockey League, is breathing easier. After a bitter lockout that earned the NHL dubious distinction as the only professional sports league to lose an entire season to a labor dispute, the puck finally dropped on the 88th season last October. New rules like overtime shootouts have captured attention, but it was the changes to the league's business model--capping salaries, sharing revenue--that have indelibly altered the game and improved its profitability. FORTUNE's Matthew Boyle talked with Bettman about hockey's return--and its wired, ubiquitous future.

How is the NHL's reinvention playing out?

The new collective-bargaining agreement means we have control over our largest cost, player salaries. We now pay 54% of our revenue to players and not a penny more. We were at 75%. There's a salary cap [$39 million] and revenue sharing. As a result, all our teams can afford to be competitive. And that competitive balance has enhanced the product that we put out on the ice.

How badly did the lockout hurt hockey?

Based on the vital signs we're seeing, the rebound has been extremely strong. I attribute that to our fans. Our fans knew what we were doing, and they stood by us.

How are those vital signs?

We're fairly certain that revenues will equal if not exceed what we did in 2003--04, which means more than $2 billion. We'll turn a meaningful profit. Before, we were losing almost $300 million a year. We're also likely to set an attendance record. Ratings for Hockey Night in Canada are up over 20%. Our U.S. regional ratings are up over 30%.

What about U.S. national TV? You're now on Comcast's Outdoor Life Network, which has a smaller audience than your ex-partner ESPN, and you're getting no rights fees from NBC.

Instead of being one of many on ESPN, we needed a partner that valued us as much as we valued us, and we're getting that with Comcast. OLN is a work in progress, and NBC had a magnificent first broadcast. The overnight ratings came in at a 1.5 audience share, and NBA is in the low 2's now. So that isn't bad.

Are there still clubs in the red?

Yes. To have expected every club to get healthy immediately would be too high an expectation. I do expect over the next couple years that all our clubs will break even, if not make money.

How's the NHL using technology?

We're providing video on demand to Comcast. We're also in talks with Apple to do video highlights on iPods. And we're starting an NHL TV Network in the U.S. next fall. We already have a network up in Canada. It will be 24/7 hockey--highlights, features, and old games.

EWING, NJ-February 7, 2006 - New Jersey authorities said Tuesday they had busted a nationwide sports gambling ring financed by an NHL coach and run in part by a state police trooper.
Wayne Gretzky's wife and about a half-dozen NHL players placed bets - but not on hockey - with a nationwide sports gambling ring financed by Phoenix Coyotes assistant coach Rick Tocchet, authorities said Tuesday.

Gretzky, hockey's greatest player, is in his first season coaching the Coyotes and is a part-owner of the team.

Actress-wife Janet Jones was among those implicated, two law enforcement officials told The Associated Press, speaking on condition of anonymity because no bettors have been publicly identified.

State police Col. Rick Fuentes said an investigation into the New Jersey-based ring discovered the processing of more than 1,000 wagers, exceeding $1.7 million, on professional and college sports, mostly football and basketball.

The developments came at a sensitive time for the NHL, which is trying to win back fans after a season-long lockout and just days before many of its best players will showcase their talent at the Turin Olympics.

Tocchet was served with a criminal complaint Monday and was expected to travel from his Arizona home to answer charges of promoting gambling, money laundering and conspiracy, Fuentes said.

"It's not a hockey-related issue, it's a football thing. And at this time I can't comment any further," Tocchet said after the Coyotes practiced Tuesday.

Gretzky said Tocchet would be on the bench for Tuesday night's home game against Chicago, and it would be "business as usual."

"Everyone in the world is innocent until proven guilty," Gretzky said. "He's a great guy and a good friend. He's just going through a tough time right now, obviously, and we've got to let it run its course. It's a situation that's obviously a concern for the organization at this point."

Gretzky did not comment about his wife, and did not return a call from the AP.

Tocchet acknowledged that a New Jersey state trooper arrested in connection with the gambling ring case is his friend. Tocchet said he would cooperate with the investigation but didn't answer when asked if he'd surrender to authorities.

"We understand that Mr. Tocchet's conduct in no way involved betting on hockey," NHL deputy commissioner Bill Daly said. "And, while betting on football or other sports may be the pervasive issue, it in no way justifies poor judgment or otherwise alleged inappropriate conduct."

Authorities said Tocchet and state police Trooper James Harney were partners in the operation, with the ex-NHL forward providing the financing.

"Tocchet received illegal sports bets from wagers and funneled money back to New Jersey," Fuentes said.

Tocchet, one of three associate coaches on the Coyotes' staff, took over the head coaching duties for 10 days in December while Gretzky was with his dying mother.

The 41-year-old Tocchet played 18 years with six teams, including three seasons with the Coyotes from 1997-00. He is one of only two players in NHL history to collect 400 goals and 2,000 penalty minutes.

Tocchet was a fan favorite during his two stints with the Flyers (1984-92, 2000-02). Flyers star center Peter Forsberg on Tuesday described Tocchet as "a good guy, a funny guy."

"I think everybody is surprised," Forsberg said. "It's definitely not good for the sport to hear something like that."

Flyers forward Simon Gagne played briefly with Tocchet in Philadelphia and called him "one of the best guys I knew."

Harney, 40, was arrested Monday and has been suspended from the force. The eight-year police veteran was charged in an arrest warrant with official misconduct, promoting gambling, money laundering and conspiracy. Another man accused of taking bets is James Ulmer, 40, who was charged with promoting gambling, money laundering and conspiracy.

Both men were free after posting 10 percent of their bail. Harney had $100,000 bail; Ulmer had $50,000 bail. The two men were expected to be arraigned in state Superior Court in Burlington County within two weeks.

Craig Mitnick, a Haddonfield attorney representing Harney, described his client as a "good, hardworking, law enforcement officer." He said he thought the charges against his client were exaggerated. Authorities' descriptions of Harney having a lavish lifestyle were false, Mitnick said.

"He's a great guy and if he has a problem with gambling, we'll take care of that," Mitnick said.

Mitnick said Harney hadn't decided whether to contest the charges in court.

The police investigation into the ring started in October 2005 after authorities received a tip on Harney's sports wagering from his Marlton home, and taking phone calls during his patrol job based out of the agency's Moorestown station, Fuentes said.

Fuentes did not disclose the bettors' names and said charges against more individuals were possible. He described one of them as a "movie celebrity."

The gambling ring had a connection with organized crime in Philadelphia and southern New Jersey, Fuentes said.

Starting Monday night, authorities seized property from Harney and Ulmer. State police seized $27,000 in currency, "voluminous" amounts of sports betting information and bank accounts worth hundreds of thousands of dollars, Fuentes said.

A search of Harney's house recovered more than $250,000 worth of Rolex watches and nine plasma-screen televisions, including two from his bathroom.

In 1,144 NHL regular-season games, Tocchet had 440 goals, 512 assists and 2,972 penalty minutes with Philadelphia, Pittsburgh, Los Angeles, Boston, Washington and Phoenix. Tocchet won a Stanley Cup with the Pittsburgh Penguins in 1992 and appeared in the Stanley Cup finals with Philadelphia in 1987. He appeared in four NHL All-Star Games: 1989, 1990, 1991 and 1993.

The NHL veteran was also hired by the Colorado Avalanche as an assistant coach in 2003.

The Newark Star-Ledger reported Thursday morning that law enforcement sources told them that state wiretaps recorded Rick Tocchet and Wayne Gretzky allegedly discussing the multimillion dollar gambling operation before it was dismantled.

On Thursday Boston Bruins' forward Travis Green was added to the list of names. Green is known to be a unabashed and successful poker player, and won $34,990 in a World Series of Poker no-limit hold 'em tournament last June, finishing 12th out of more than 2,000 players. He qualified for the Las Vegas event by winning $45,000 in an online tournament.