Terry Rozier, the 31-year-old guard who left the NBA in March after a foot injury, has filed a motion asking a judge to toss the federal sports-betting charges that have kept him off the court this season.
A Motion to Dismiss
Rozier’s lawyers, James M. Trusty and A. Jeff Ifrah, released the motion on Tuesday, arguing that the government’s case-claiming the player prevented sportsbooks from making informed decisions-violates the 2023 Supreme Court decision that narrowed the scope of the federal wire fraud statute.
The Supreme Court’s 2023 Ruling
Under United States v. Ciminelli, prosecutors cannot build a wire fraud case on allegations that defendants conspired to deprive a person, or in this instance sportsbooks, of the information needed to make discretionary economic decisions. Rozier’s team cites that precedent to argue the case is a misapplication of federal law.
Allegations by Brooklyn Prosecutors
Federal prosecutors in Brooklyn allege that Rozier tipped a friend, Deniro “Niro” Laster, that he would leave a March 2023 game early because of a supposed injury. Laster, who is also charged, allegedly shared or sold that tip to others, who placed more than $250,000 in prop bets, prosecutors said.
What the Indictment Says
“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.'”
Questions of Federal Authority
Rozier’s counsel also questioned whether federal prosecutors have the 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.
The Injury Question
Rozier was on the Charlotte Hornets when the alleged tip occurred. 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.
Rozier’s Career and the Game in Question
Rozier has earned about $160 million over a 10-year NBA career. He was a first-round pick for the Boston Celtics in 2015 after starring at the University of Louisville, and Charlotte traded him to the Heat last year.
In the March game against the New Orleans Pelicans, Rozier played the first nine minutes and 36 seconds before leaving, citing a foot issue. He did not play again that season.
No Betting Allegations Against Rozier
Rozier’s lawyers noted that the indictment does not allege that he ever placed a bet on any NBA game, nor does it allege 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. And, they said, he really was injured.
NBA Integrity and League Response
The charges have 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.
The Wider Sweep
Rozier’s case is 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.
Current Status
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.
Key Takeaways
- Rozier’s lawyers argue the case violates the Supreme Court’s 2023 wire fraud ruling.
- Prosecutors claim Rozier tipped a friend about an early exit, leading to $250,000 in prop bets.
- The indictment does not allege Rozier placed any bets or knew the tip would be sold.
The outcome of this motion could set a precedent for how federal prosecutors handle sports-betting cases that hinge on alleged insider information.
