NEW YORK (AP) — Lawyers for Miami Heat guard Terry Rozier are asking a judge to dismiss sports gambling charges that have sidelined him this season, saying the government went too far by turning a private dispute over a bettor’s use of nonpublic information into a federal case.
In a motion to dismiss unsealed Tuesday, Rozier’s attorneys argued that the government’s theory of the case — that he prevented sportsbooks from making informed decisions about accepting certain bets — conflicts with a recent U.S. Supreme Court ruling narrowing the scope of federal wire fraud statutes.
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Rozier, 31, is accused of helping gamblers profit by tipping off friends that he would withdraw early from a March 2023 game due to an alleged injury. The friend, Deniro “Niro” Laster, is also accused of sharing or selling the information to others who placed more than $250,000 in self-operated bets, prosecutors said.
“The government classified the case as involving ‘insider betting’ and ‘fixing’ of professional basketball games,” Rozier’s attorneys, James M. Trusty and A. Jeff Ifrah, wrote in the motion. “But the indictment alleges something less dramatic: Some bettors violated certain sportsbooks’ terms of use, which prohibit betting based on nonpublic information and ‘straw betting.'”
Prosecutors said Rozier was playing for the Charlotte Hornets at the time and information about his early exit was not listed on the team’s injury report and was not shared with the public or sportsbooks that accept bets on NBA games and player performance.
On December 8, Rozier pleaded not guilty to wire fraud conspiracy and money laundering conspiracy charges in Brooklyn federal court. He was released on $3 million bail and is due back in court on March 3 for a hearing before U.S. District Judge Lashann DeArcy Hall.
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His charges were part of a sweep targeting more than 30 others involved in two massive gambling operations: one involving leaks of inside information about NBA athletes and another involving rigged poker games backed by the Mafia, authorities said.
The allegations raised questions about the integrity of NBA games in an era of legalized gambling and countless prop bets, prompting the league to adjust its injury reporting requirements.
A message seeking comment on Rozier’s motion to dismiss the case was left with federal prosecutors.
Rozier’s attorneys wrote in the motion that under the Supreme Court’s 2023 ruling in United States v. Ciminelli, prosecutors cannot pursue a wire fraud case on the basis that the defendants conspired to deprive individuals (or, in this case, sportsbooks) of the information they need to make free economic decisions.
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They also question whether federal prosecutors have the authority to bring such charges because sports betting is regulated at the state level, not the federal level.
“This is not to say that sports betting platforms have no recourse when their terms of use are violated — they can cancel bets, seek civil remedies or seek the involvement of the state attorney,” Trusty and Ifrah wrote in the motion, which was dated Dec. 12 but was only posted to the case docket on Tuesday. “But Ciminelli rejects the idea that federal prosecutors are here to enforce contractual agreements between bettors and platforms.”
Rozier earned approximately $160 million during his 10-year NBA career. After emerging at the University of Louisville, he was drafted in the first round by the Boston Celtics in 2015. Charlotte traded him to the Heat last year.
Rozier played the first 9 minutes and 36 seconds of this game against the New Orleans Pelicans before leaving, citing foot issues. He did not play again that season.
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Rozier’s attorney points out that the indictment does not allege that he ever bet on any NBA games, or that he knew Laster intended to sell his tips to others, or that using it to place bets would violate the sportsbook’s terms of service. And, they said, he was indeed injured.
“The government is skeptical that Mr. Rozier was injured, but numerous witnesses and medical professionals were aware of Rozier’s injuries, many prior to the Pelicans game,” Trusty and Ifrah wrote.