NEW YORK (AP) — The legal team representing Miami Heat guard Terry Rozier has filed a motion requesting that a judge dismiss the sports gambling charges that have sidelined him this season. The defense argues that the federal government overreached by transforming what began as a private dispute regarding bettors' use of nonpublic information into a federal case.
In a publicly released motion on Tuesday, Rozier’s attorneys contended that the government's interpretation of the case—claiming that he obstructed sportsbooks from making informed decisions concerning certain bets—contradicts a recent ruling by the U.S. Supreme Court. This ruling, from 2023, narrowed the federal wire fraud statute's application.
According to federal prosecutors in Brooklyn, the 31-year-old Rozier allegedly helped gamblers profit by alerting a friend about his intention to exit a March 2023 NBA game early due to a purported injury. This friend, Deniro “Niro” Laster, who is also facing charges, reportedly shared or sold this insider information to others, leading to over $250,000 in prop bets being placed. Prosecutors claim that Rozier's actions amount to a form of insider betting.
Rozier's legal team, comprising attorneys James M. Trusty and A. Jeff Ifrah, pointed out in the motion that while the government has framed the case as one involving “insider betting” and the “rigging” of professional basketball games, the indictment merely alleges violations of certain sportsbooks' terms of use regarding wagering based on nonpublic information and “straw betting.”
At the time of the incident, Rozier was with the Charlotte Hornets. The information about his early exit was not documented in the team's injury report nor disclosed to the public or the sportsbooks handling wagers related to NBA games and player performances, prosecutors noted. Rozier entered a not guilty plea on December 8 to charges of wire fraud conspiracy and money laundering conspiracy, was released on a $3 million bond, and is scheduled for a court hearing before U.S. District Judge LaShann DeArcy Hall on March 3.
These charges are part of a broader investigation that targeted over 30 individuals in the dismantling of two significant gambling rings: one accused of leaking inside information about NBA players, and another related to rigged poker games tied to organized crime. The case has raised serious concerns about the integrity of NBA games during an era marked by legalized betting and an increasing number of prop bets, leading the league to amend its injury reporting regulations.
While federal prosecutors have declined to comment on Rozier's motion, his lawyers referenced the 2023 Supreme Court ruling in United States v. Ciminelli. They asserted that prosecutors cannot base wire fraud cases on accusations that defendants conspired to deny someone—like sportsbooks—the necessary information for making informed economic decisions. Additionally, they questioned whether federal authorities even have jurisdiction to pursue such cases, given that sportsbooks are regulated at the state level rather than federally.
The defense clarified that while betting platforms have remedies for violations of their terms of service—such as voiding bets or pursuing civil actions—they argued that Ciminelli decisively negates the premise that federal prosecutors can enforce contracts between bettors and betting platforms. Rozier's career earnings have amounted to around $160 million over a decade in the NBA, starting as a first-round pick for the Boston Celtics in 2015 after his successful stint at the University of Louisville. He was traded to the Miami Heat from the Hornets last season.
In the game leading to the controversy, Rozier played for 9 minutes and 36 seconds against the New Orleans Pelicans before departing due to a foot issue and did not play again that season. His legal team emphasized that the indictment does not assert that he ever placed a wager on any NBA game or that he was aware that Laster intended to sell his information to others or that using it for bets would breach the sportsbooks' terms. They also affirmed that Rozier was indeed injured at the time.
They stated, “The government’s cynicism regarding whether Mr. Rozier was injured is contradicted by various witnesses and medical professionals who were aware of Rozier’s injury, often before the Pelicans game.”
