Gay, however, responded with a clutch basket to regain the lead for Toronto and Lawson missed a 17-foot running jumper at the buzzer, securing the Raptors' third straight win.
Gay finished with 17 points while DeMar DeRozan supplied 22 and eight rebounds for Toronto.
Lawson pumped in 29 points and dished off nine assists for the Nuggets, who dropped a second straight following a nine-game winning streak.
Dennis Rodman pledges to end trips to North Korea
Teacher apologizes for showing sexual image of herself in class