Miami Heat Waive Terry Rozier Amid Federal Gambling Investigation

The Miami Heat waived guard Terry Rozier on April 10, 2026, in a procedural move designed to open a roster spot before the team enters the postseason. The decision follows a season in which Rozier remained sidelined due to a federal investigation into illegal sports gambling.

Rozier faces federal charges involving a gambling operation. According to court documents and reporting, the 32-year-old was indicted in October 2025 on two federal counts: conspiracy to commit wire fraud and conspiracy to commit money laundering.

The Department of Justice alleges that Rozier participated in a widespread sports gambling case. Specifically, Rozier is alleged to have informed a friend, Deniro Laster, that he would remove himself from a game early to ensure sports bettors won prop bets based on his statistics. The incident occurred during a March 2023 game between the Charlotte Hornets, where Rozier played at the time, and the New Orleans Pelicans.

During that March 2023 contest, Rozier played for only 9 minutes and 34 seconds. This resulted in the under being hit on the betting lines for his points, assists, and three-pointers. Deniro Laster has also been charged as part of the federal case.

Legal Timeline and NBA Status

Rozier’s current season with the Miami Heat was derailed almost immediately. He was on the roster for the season opener against Orlando on October 22, 2025, but he did not play in the game. Federal officials arrested him at the team hotel the following morning, October 23, 2025.

Shortly after the arrest, the NBA placed Rozier on leave. He appeared for an arraignment hearing at Brooklyn Federal Court in New York on December 8, 2025, where he pleaded not guilty to the charges. As of April 11, 2026, no trial date has been set.

The legal proceedings also created a financial dispute regarding Rozier’s $26.6 million salary for the season. The Miami Heat initially placed the funds into an interest-bearing account. However, an arbitrator ruled in February 2026 that Rozier was entitled to receive the money despite his ongoing legal issues.

Trade History and Compensation

The Heat acquired Rozier from the Charlotte Hornets in January 2024. At the time of the trade, Miami was unaware of the ongoing gambling probe. To secure Rozier, the Heat traded Kyle Lowry and a first-round pick scheduled for 2027 to Charlotte.

In a largely unprecedented move to resolve disputes over information that was not disclosed during the original January 2024 deal, the Charlotte Hornets gave Miami a second-round pick in the current year’s draft in March 2026.

Roster Adjustments and Postseason Outlook

By waiving Rozier by the 5 p.m. Deadline on April 10, 2026, the Heat were able to clear space for a player eligible for the postseason. The team will use the vacated spot to sign guard Jahmir Young, who was previously on a two-way contract, to a standard NBA deal.

The Miami Heat currently hold a 42-39 record and occupy the 10th seed in the Eastern Conference with one game remaining in the regular season. The team is scheduled to begin play in the play-in tournament on either Tuesday, April 14, or Wednesday, April 15, 2026.

If the Heat win two play-in games, they will advance to the playoffs to face Detroit starting on April 19, 2026.