The unique and pervasive powers of federal prosecutors are key to unpacking an ongoing criminal investigation into illegal sports betting schemes that might touch on Miami Heat guard Terry Rozier. In short, federal authorities might uncover information about an NBA player that the NBA doesn’t uncover.
As reported by The Wall Street Journal on Thursday, prosecutors from the Eastern District of New York are investigating whether Rozier, while a member of the Charlotte Hornets, altered his play during a game against the New Orleans Pelicans on March 23, 2023. If those alterations occurred, they may have reflected a concerted effort to further an illegal conspiracy.
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Rozier has not been criminally charged or civilly sued over these suspicions, but he is being scrutinized as part of a wider federal probe into possible rigged games and manipulated performances in different sports.
Last year, investigators found that former Toronto Raptors forward Jontay Porter partook in a scheme where he bet against himself in games where he feigned injury. The bets were proposition bets (also called “prop bets”), which are wagers on specific events or outcomes in a game. One prop bet for Porter concerned the number of 3-pointers he’d make, with the over/under set at 0.5. He went scoreless in the game and didn’t attempt a 3-pointer before leaving the game with what was reported as an eye injury.
The NBA conducted its own probe and found Porter was guilty. NBA commissioner Adam Silver banned Porter for life, finding his actions undermined the integrity of the game and were “blatant violations” of league rules. Porter pleaded guilty to conspiracy to commit wire fraud and awaits sentencing in May.
Porter may be connected to Rozier in the conspiracy, the WSJ reported, because the feds suspect some of the conspirators connected to Porter “had inside information that prompted them to bet large sums of money against Rozier a year earlier.” The bets concerned how many points and rebounds Rozier would attain in the game. Rozier, who averaged 21 points per game in the 2022-23 season, scored only five points in 9:34 minutes. He left the game with a sore foot and didn’t play in the Hornets’ remaining eight games.
The irregularity of wagers on Rozier led U.S. Integrity, a company that monitors betting patterns, to notify the NBA and sportsbooks. The NBA, which constantly surveils for irregular activities and partners with companies that provide monitoring services, said in a statement on Thursday that it was alerted “to unusual betting activity” related to Rozier’s performance in March 2023. The NBA said it investigated the matter at the time and, significantly, “did not find a violation of NBA rules.”
The NBA has far-reaching powers to investigate its own players, as well as coaches, executives, referees and owners. Each is contractually obligated to comply with league investigations. The NBA’s leadership includes seasoned and skilled attorneys (such as Silver and top executives Rick Buchanan and Dan Spillane). It also has a long track record of conducting thorough investigations, including the Porter probe and an inquiry into former Los Angeles Clippers owner Donald Sterling over a recording that contained racist statements, which ultimately led to a change in control of the team.
But it is still a sports league, and as a private business, the NBA lacks subpoena powers that could compel sworn testimony or the sharing of emails, texts and other forms of electronic evidence. For instance, it can’t compel a social media company to share copies of messages or a phone company to share copies of call records.
A sports league also can’t require persons outside the league to cooperate in an investigation or share information. Even witnesses who do cooperate might refrain from providing sworn statements. They could thus intentionally lie, exaggerate or selectively omit information without risk of facing a perjury criminal charge. Witnesses can have incentives to deflect blame onto others as a way of protecting themselves.
The feds are in a stronger situation, with sweeping authorities to compel the truthful disclosure of information. Consider Porter. Prosecutors obtained texts, cell phone records and wire transfer data to prove illicit betting took place and which persons were involved. In one text, Porter expressed fear that if they didn’t go along with the plot, he would be beaten up.
Prosecutors can also threaten witnesses with criminal charges, especially expansively defined charges like wire fraud or conspiracy which can apply to many people who become connected to an illegal act. Prosecutors can also cut deals with defendants so that if they agree to cooperate—meaning share incriminating evidence and provide damning testimony about others—they’ll receive lighter punishments. Porter cut a deal with prosecutors.
Rozier, 30, was a first-round pick of the Boston Celtics in the 2015 NBA Draft. He has earned about $110 million in salaries during his nine NBA seasons. Rozier is also no stranger to sports law controversies, though his previous appearance involved a far lighter topic. In 2021, Rozier won an infringement litigation in a case where a company that manufactures the Ghost Face mask from the 1996 slasher film Scream sued Rozier over his “Scary Terry” clothing line.
The Rozier investigation comes at a time when the sports industry faces heightened scrutiny over betting. It’s been seven years since the U.S. Supreme Court held in Murphy v. NCAA that it was unconstitutional for Congress, through the Professional and Amateur Sports Betting Act of 1992 to compel states to deny sports betting when there was no accompanying federal standard. There are now 38 states that offer legalized sports betting, but there have been several high-profile scandals of late involving pro leagues and college sports. Most notably, Shohei Ohtani’s interpreter, Ippei Mizuhara, stole about $17 million from Ohtani to pay off sports bets.
NCAA president Charlie Baker, meanwhile, has been a leading voice in urging states to ban prop bets. Also, if the recently introduced SAFE Bet Act becomes law, states would need to gain approval from the Justice Department to offer legalized sports.
Though the Rozier matter might come and go without any adverse findings, its prominent place in the news cycle could compel lawmakers to keep their eye on the ball when it comes to sports betting.
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