Miami Heat guard Terry Rozier’s lawyers have filed a motion to dismiss federal sports-betting charges that have sidelined him from the court this season.
Motion to Dismiss
On Tuesday, the attorneys, James M. Trusty and A. Jeff Ifrah, argued that the government’s case-claiming Rozier prevented sportsbooks from making informed decisions about certain bets-violates a recent U.S. Supreme Court ruling that narrowed the scope of the federal wire-fraud statute.
Supreme Court Ruling
The motion cites United States v. Ciminelli (2023), which holds that prosecutors cannot build a wire-fraud case on the basis that defendants conspired to deprive a person-here, sportsbooks-of the right to information needed for discretionary economic decisions.
Allegations
Federal prosecutors in Brooklyn allege that Rozier, 31, tipped a friend that he would leave a March 2023 game early because of a supposed injury, and that the friend, Deniro “Niro” Laster, shared or sold the tip to others who placed more than $250,000 in prop bets.
Indictment Details
The indictment frames the matter as ‘insider betting’ and ‘rigging’ professional basketball games, but the lawyers note that the actual charges focus on bettors violating sportsbooks’ terms of use through non-public information and ‘straw betting.’ “The government has billed this case as involving ‘insider betting’ and ‘rigging’ professional basketball games,” Rozier’s lawyers, James M. Trusty and A. Jeff Ifrah, wrote in the motion. “But the indictment alleges something less headline-worthy: that some bettors broke certain sportsbooks’ terms of use against wagering based on non-public information and ‘straw betting.'”
Rozier’s Injury
Rozier was with the Charlotte Hornets at the time, and the information about his early exit was not listed on the team’s injury report, nor was it disclosed to the public or to sportsbooks, prosecutors said.
Plea and Bond
Rozier pleaded not guilty on Dec. 8 to wire-fraud conspiracy and money-laundering conspiracy charges, was released on a $3 million bond, and is scheduled to appear before U.S. District Judge LaShann DeArcy Hall on March 3.
Sweep of Gambling Operations
His indictment is part of a broader takedown that included more than 30 other individuals, targeting one operation that leaked inside information about NBA athletes and another involving Mafia-backed poker games.
NBA Integrity Concerns
The case has sparked debate over the integrity of NBA games amid legalized betting and a proliferation of prop bets, prompting the league to adjust its injury-reporting requirements.
Prosecutors’ Office Comment
A spokesperson for the federal prosecutors’ office in Brooklyn declined to comment on Rozier’s motion.
Lawyers’ Argument on Jurisdiction
Rozier’s attorneys question whether federal prosecutors have authority to bring such a case, noting that sportsbooks are regulated at the state level, not the federal level. “This is not to say that sports betting platforms are without recourse when their terms of use are violated – they can void bets, pursue civil remedies, or seek state prosecutor involvement,” Trusty and Ifrah wrote. “Ciminelli puts to rest the notion that federal prosecutors are here to enforce contractual agreements between bettors and platforms.”
Lawyers’ Argument on Injury Evidence
They also argue that Rozier was genuinely injured, citing witnesses and medical professionals who were aware of his foot issue before the Pelicans game, and that the government’s skepticism is contradicted by those testimonies. “The government’s cynicism as to whether Mr. Rozier was injured is belied by a variety of witnesses and medical professionals who were aware of Rozier’s injury, in many cases before the Pelicans game,” Trusty and Ifrah wrote.
Rozier’s Career
Rozier has earned roughly $160 million over a 10-year NBA career, was a first-round pick for the Boston Celtics in 2015 after starring at the University of Louisville, and was traded to the Heat last year.
Closing
During the March 2023 game against the New Orleans Pelicans, Rozier played the first nine minutes and 36 seconds before leaving with a foot issue and never returned to the season; the court will decide whether the federal case should proceed.
