The NBA and former Miami Heat guard Terry Rozier appeared before an arbitrator last month for a second time to dispute whether he is entitled to his $26.6 million salary while facing federal charges tied to an alleged sports gambling scheme, three sources briefed on the hearing told The Athletic.

The NBA placed Rozier on administrative leave in October, days after federal prosecutors in the Eastern District of New York charged him with two felony counts of conspiracy to commit wire fraud and conspiracy to commit money laundering. The league withheld his salary and placed the funds in escrow.

An arbitrator ruled this past winter, following a grievance filed by the NBPA, that Rozier was entitled to payment despite the charges. The league challenged that outcome this spring, arguing that Rozier's bond conditions prevented him from playing and that his salary should be reduced accordingly.

Rozier has pleaded not guilty. Prosecutors allege he informed a friend in advance that he would exit a March 2023 game early, with that friend then selling the information to gamblers who wagered on Rozier's player prop bets. A superseding indictment is expected this month.

"We have developed evidence that Mr. Rozier solicited and accepted a bribe," Eastern District prosecutor Kaitlin Farrell said during an April hearing.

Rozier did not appear in a single game this season after his October 23 arrest. Miami waived him last month. Former NBA player Damon Jones, one of six co-defendants in the case, has already pleaded guilty.

The case is part of a broader reckoning for the NBA over gambling-related misconduct. The league has relaunched its own internal investigation, requesting documents from implicated teams. Major League Baseball faces a parallel situation, with pitchers Emmanuel Clase and Luis Ortiz under indictment for allegedly manipulating pitch outcomes to benefit sports bettors. MLB and its players union agreed in March that both pitchers would remain on unpaid, non-disciplinary leave ahead of an expected November trial.