Miami Heat guard Terry Rozier was arrested early Thursday morning in Orlando and charged in a federal sports betting and money laundering case that prosecutors say involved using nonpublic information about NBA players and injuries to place illegal wagers.
U.S. Attorney for the Eastern District of New York Joseph Nocella said Rozier is one of six defendants in the first of two large-scale federal cases, both tied to an overlapping network of illegal gambling and organized crime.
“Your winning streak has ended,” Nocella said during a Thursday morning news conference. “Violating the law is a losing proposition.”
Rozier charged with conspiracy to commit wire fraud and money laundering
According to Nocella, Rozier and others are accused of defrauding sportsbooks by using confidential, nonpublic information about when certain NBA players would sit out games or withdraw due to injuries. Prosecutors said the group used that information to gain an unfair advantage in placing bets.
Rozier is charged with conspiracy to commit wire fraud and conspiracy to commit money laundering.
FBI Director Kash Patel described the first case as a “wide-sweeping criminal enterprise” that blurred the lines between the NBA and organized crime.
“This is an illegal gambling and rigging operation that spanned the course of years,” Patel said. “This fraud is historic in its scheme.”
Rozier’s attorney, James Trusty, criticized the handling of the arrest, saying his client had cooperated with authorities and should have been allowed to surrender voluntarily. Trusty said prosecutors had previously described Rozier as a “subject, not a target,” and accused them of seeking publicity instead of fairness.
“They wanted the misplaced glory of embarrassing a professional athlete with a perp walk,” Trusty said. “That tells you a lot about the motivations in this case.”
Trusty added that Rozier was cleared by the NBA in an earlier review and “looks forward to winning this fight.”
Rozier’s arrest came just hours after the Heat’s season-opening game Wednesday night against the Orlando Magic, a game he did not play in despite being listed on the active roster. Rozier was arrested by federal authorities at a Orlando hotel.
Team officials and Heat head coach Erik Spoelstra have not commented publicly on Rozier’s arrest.
Former NBA player Damon Jones, who played for the Miami Heat in 2004, was also arrested in connection to the sports betting charges investigation.
Second case tied to New York organized crime families
In a separate but related case, 31 defendants were charged with running illegal, high-stakes poker games that federal agents say were fixed using technology to manipulate outcomes.
Portland Trail Blazers coach Chauncey Billups was arrested in connection to this case, authorities confirmed.
Prosecutors said the operation stretched from New York to Las Vegas, Los Angeles, and Miami and involved members of the Bonanno, Gambino, and Genovese crime families, who previously controlled other underground gambling networks in New York.
Thirteen alleged mob associates were charged in connection with that scheme.
Nocella said three people, including Jones, overlap between the two cases, bringing the total number of defendants to 34 nationwide.
Rozier and Billups put on leave during the investigation, NBA says
The NBA said in a statement that Rozier and Billups were being put on leave as the league cooperates with authorities.
“We are in the process of reviewing the federal indictments announced today,” the league said in a statement. “Terry Rozier and Chauncey Billups are being placed on immediate leave from their teams, and we will continue to cooperate with the relevant authorities. We take these allegations with the utmost seriousness, and the integrity of our game remains our top priority.”
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Earlier this year in a separate case, former NBA player Gilbert Arenas was arrested for allegedly operating an illegal gambling and poker ring out of a California home that he owned.
Rozier’s rise with the Boston Celtics
Before joining Miami, Rozier spent four seasons with the Boston Celtics, where he built a reputation as a tenacious defender and clutch playoff performer.
Drafted by Boston in 2015, he became a breakout player in the 2017-18 postseason, averaging 16.5 points, 5.3 rebounds, and 5.7 assists while helping lead the team to the Eastern Conference Finals.
Rozier later played four and a half seasons with the Charlotte Hornets, averaging more than 19 points per game before being traded to the Miami Heat in early 2024.
According to earlier reporting from ESPN and CBS Sports, federal investigators had been examining unusual betting activity linked to a March 2023 game when Rozier played for the Charlotte Hornets, including heavy wagers on his player stats. At the time, the NBA said it found no evidence that Rozier violated league rules.