The Miami Heat showed out well in their 125-121 loss to the Orlando Magic last night. But the Heat received troubling news early this morning with the arrest of Terry Rozier, per reporter Pablo Torre.
“Source tells @pablofindsout that Miami Heat guard Terry Rozier was arrested by the FBI this morning, Torre tweeted.
What Does Terry Rozier’s Arrest Mean For the Heat Going Forward?
Rozier was arrested at the Heat’s team hotel in Orlando. He was charged with wire fraud and illegal gambling charges. Prosecutors allege Rozier and others used non-public information to place fraudulent bets between December 2022 and March 2024. Additionally, he is accused of manipulating his own performance in at least one NBA game to benefit illegal betting operations
Rozier had been under federal probe since January. It surrounds a game that dates back to March 23, 2023, when the 31-year-old guard was a member of the Charlotte Hornets. According to ESPN’s David Purdum’s July 18, 2025, report, one bettor placed 30 wagers in 46 minutes on the “unders” on Rozier-related prop bets at a Biloxi, Mississippi, Casino. All 30 bets won after the guard only played 10 minutes in the game before leaving with a foot issue, despite not being on the injury report before tip-off.
Purdum added that all bets were eventually paid out to the bettor, which amounted $13,759. He also said that after Rozier was ruled out for the game, there was a rush to place “under” props on Rozier at multiple New Orleans casinos, leading to a halt being placed on those bets later in the day.
Terry Rozier Federal Charges
Additionally, Rozier’s lawyer, Jim Trusty, told Purdum that Rozier was not a part of the investigation. However, that was never the case, though he may not have been the specific target.
“My hope and expectation is that at some point, they’ll be done with their investigation and will be professional enough to let us know that it’s 100 percent over and that they reached the same conclusion that was reached in 2023,” Trusty said, referencing Rozier’s initial meetings with the FBI and NBA in 2023.
While Rozier didn’t play for the Hornets following the game in question, he appeared in 30 games for Miami and played the entire 2024-25 season. Rozier had dealt with a hamstring injury all preseason, though he scored four points in 11 minutes of action in the team’s exhibition contest. He was officially cleared ahead of the Heat’s loss to the Magic, but did not play.
Rozier wasn’t the only former player arrested today in connection with illegal gambling. Portland Trail Blazers coach Chauncey Billups and former Cleveland Cavaliers player and assistant coach Damon Jones were also arrested. All totaled, 34 people were apprehended.
“The FBI says that NBA player Terry Rozier told the defendants that he was going to leave a game early on March 23, 2023, with an injury. The defendants then placed more than $200,000 of wagers on the unders for his prop bets, with Rozier leaving the game after nine minutes. Those bets paid out tens of thousands of dollars in profits, and the defendants and Rozier counted the money at his house,” via Austin Dobbs of Sports Illustrated.
What Does Rozier’s Arrest Mean For the Heat?
Miami has been looking to get rid of Rozier’s bloated $24.9 million contract for a while. By no means were the Heat hoping for this outcome, or that any other bad things would happen to Rozier. Rozier is in the final year of his deal.
“We are in the process of reviewing the federal indictments announced today,” the NBA 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.”
The NBA has placed Rozier on indefinite leave. That leaves the Heat with 13 players on standard contracts. By league rules, the Heat have 14 days to fill the roster spot, if they choose to do so. The Heat are $1.6 million below the tax line.
Miami currently has 15 healthy players, with Tyler Herro sidelined until at least the end of November (ankle/foot). Rookie Kasparas Jakucionis (groin) missed the Heat’s final two preseason contests and has not returned to practice, per ESPN. While Jakucionas was projected to see limited time with the Heat, his absence, along with those of Herro and Rozier, limits the Heat’s backcourt depth.
Erik Spoelstra used 10 players in the loss to Orlando. Davion Mitchell and Norman Powell started and combined for 44 points, 16 assists, and 15 rebounds versus the Magic. Jaime Jacquez Jr. saw 30 minutes off the bench, while Dru Smith played 13 minutes, and Pelle Larrson was on the court for four.
What’s Next For The Heat?
The Heat also has guards, Jahmir Young and Myron Gardner, on two-way deals. Precious Achiuwa makes sense for the Heat since he was in camp with the team and would likely become the fourth big behind Bam Adebayo, Nikola Jovic, and Kel’el Ware.
If Rozier gets banned, Miami will get some salary relief, as Miami Herald’s Barry Jackson outlined.
“If arrest prompts NBA to void his contract, Miami’s payroll commitments would drop from $186 M (rounded off) to $159 M– still above $154.6 M salary cap,” Jackson tweeted. “The Heat would have flexibility to sign available bench players to fill spots 14 and 15, but could not absorb a traded salary into cap space because it would have no cap space even if the NBA voids Rozier’s contract.”
The question is, when will the NBA make a decision? Whenever it comes, expect the Heat to get some relief at some point this season. In the meantime, the Heat will add a 14th player as the NBA tax penalties do not become official until March 1.
Dan Gallo of NBC reported that Rozier has put his home up as collateral and walked out of the Orlando Federal Courthouse on his own accord.
“Rozier waived his right to have his future hearings in Florida, and his next expected court date will be in Brooklyn, New York, in December, Gallo said. “He was ordered to surrender his passport to authorities by tomorrow afternoon.The judge also ordered him not to gamble, “either in person or using an online device.”
© Jim Rassol, Imagn Images
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