Two Nevada men raised $29.5 million from investors after falsely promising 250% to 600% returns from a sports gambling system, a suit filed in Nevada federal district court alleges.

John F. Thomas and Thomas Becker convinced more than 600 people to invest in six entities that purportedly used pooled investor funds to bet on sporting events starting in August 2014, according to a U.S. Securities and Exchange Commission complaint filed in the U.S. District Court for the District of Nevada.

The pair allegedly used a network of at least 150 brokers and agents to solicit investments, including unregistered broker co-defendants...