Miami Heat guard Terry Rozier’s lawyers have asked a judge to toss out the federal sports-betting charges that have kept him off the court this season, arguing that the case is an overreach of the wire-fraud statute.
Legal Arguments
In a motion to dismiss made public on Tuesday, Rozier’s attorneys, James M. Trusty and A. Jeff Ifrah, cited the 2023 Supreme Court decision in United States v. Ciminelli. They argued that prosecutors cannot build a wire-fraud case on the basis that defendants conspired to deprive a person-or, in this instance, sportsbooks-of the information needed to make discretionary economic decisions. The lawyers also questioned whether federal prosecutors have jurisdiction, noting that sportsbooks are regulated at the state level, not the federal level.
They wrote, “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 added that Ciminelli “puts to rest the notion that federal prosecutors are here to enforce contractual agreements between bettors and platforms.”
Allegations and Context
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. The friend, Deniro “Niro” Laster-who is also charged-shared or sold the information to others, who placed more than $250,000 in prop bets, prosecutors said. The indictment does not allege that Rozier ever placed a bet, nor that he knew Laster intended to sell the tip, nor that using it would violate sportsbooks’ terms of service.
“The government has billed this case as involving ‘insider betting’ and ‘rigging’ professional basketball games,” Rozier’s lawyers wrote. “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 was on 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 shared with the public or the sportsbooks that accept wagers on NBA games and player performances, prosecutors said.
Court Proceedings and Timeline
Rozier pleaded not guilty on Dec. 8 to wire fraud conspiracy and money laundering conspiracy charges. He was released on a $3 million bond and is due back in court for a hearing before U.S. District Judge LaShann DeArcy Hall on March 3. The motion, dated Dec. 12, was posted to the case docket on Tuesday.
The charges are part of a sweep of more than 30 other people in a takedown of two sprawling gambling operations: one that authorities said leaked inside information about NBA athletes and another involving rigged, Mafia-backed poker games.
Broader Implications
The case has raised questions about the integrity of NBA games in an era of legalized betting and myriad prop bets, prompting the league to tweak its injury reporting requirements. A spokesperson for the federal prosecutors’ office in Brooklyn declined to comment on Rozier’s motion.
Rozier’s lawyers noted that the indictment does not allege that he ever placed a bet on any NBA game, nor that he knew Laster intended to sell his tip to others or that using it to place wagers would violate the sportsbooks’ terms of service. They also said he really was injured, adding that “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.”
Key Takeaways
- Rozier’s lawyers argue that the Supreme Court’s 2023 ruling limits federal wire-fraud prosecutions in cases involving sports betting.
- Allegations center on Rozier tipping a friend about a game exit, leading to $250,000+ in prop bets by others.
- The case is part of a larger federal sweep targeting gambling operations that leaked NBA player information and ran rigged poker games.
The motion seeks to have the federal charges dismissed, asserting that the case falls outside the scope of the wire-fraud statute and that sportsbooks are governed by state law, not federal law.
