Terry Rozier, a guard for the Miami Heat, accused federal prosecutors of overreaching and urged a judge to dismiss charges related to sports betting on Thursday.

In October, Rozier was accused as part of an FBI crackdown on sports betting. On December 8, he entered a not guilty plea to charges of money laundering and wire fraud conspiracy. He was then freed on a $3 million bond.

Rozier is accused of collaborating with bettors

In a move to dismiss, Rozier's attorneys, lead by James Trusty and A. Jeff Ifrah, contended that the government's overreach amounted to transforming a private disagreement over bettors' use of confidential information for sports betting into a federal matter.

“The government has billed this case as involving ‘insider betting’ and ‘rigging’ professional basketball games,” Rozier’s lawyers 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.’”

Prop Bets of $250K

In March 2023, Rozier allegedly pulled himself out of an NBA game owing to a foot problem less than ten minutes after play began, allegedly working with bettors while he was a member of the Charlotte Hornets, according to the prosecution.

Deniro "Niro" Laster, an alleged co-conspirator, received the information and sold it to bettors, who used it to place more than $250K in prop bets, thus benefiting Rozier. Prosecutors claim that neither the public nor bookmakers were informed of Rozier's injury, nor was it included in the Hornets' pregame injury bulletins.

Rozier was one of 34 individuals, including former Kentucky football player Damon Jones, Portland Trail Blazers coach Chauncey Billups, and former player Laster, who were charged in separate cases in October with allegedly defrauding poker players in games connected to New York mafia families and engaging in fraudulent NBA game betting.

Motion to Dismiss

“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 in the motion. A past Supreme Court ruling (2023, United States v. Ciminelli) puts to rest the notion that federal prosecutors can enforce contractual agreements between bettors and platforms.

The money laundering disappears if the defense team prevails and Rozier's wire fraud charges are dropped. For courts to even take the money laundering charge into consideration, there must be a predicate offense.

Prosecutors Have Nothing to Say

The government's charge does not claim that Rozier personally bet on an NBA game or that Rozier knew Laster intended to sell the information to gamblers, according to Rozier's attorneys, who also stressed that their client was actually hurt.

Federal prosecutors reportedly declined to comment on the move to dismiss. On March 3, Rozier is scheduled to return to court for a hearing. He is currently on unpaid leave from the Heat.