New Jersey’s efforts to legalize sports betting yesterday "suffered another significant -- and potentially fatal -- setback" when a federal appeals court "upheld a previous ruling invalidating a challenge to a federal law that limits such gambling to four states," according to a front-page piece by John Brennan of the Bergen RECORD. Judges "ruled 10-2 in favor of five sports organizations, including the NFL and the NCAA." The ruling "offered supporters of legal sports wagering in New Jersey little in the way of guidance about how the state law -- two versions of which have now been struck down on appeal -- might be revised so it could be deemed to be in accord with Congress." Judge Marjorie Rendell wrote in the majority opinion that the court “need not … articulate a line” that must not be crossed to avoid legal scrutiny, while adding that “it is sufficient to conclude that the 2014 law overstepped it" (Bergen RECORD, 8/10). In Newark, Johnson & Salant in a front-page piece note the U.S. Third Circuit Court of Appeals in Philadelphia ruled that a '14 law signed by Gov. Chris Christie "violated a 1992 federal ban on sports wagering." The law "attempted to get around the federal prohibition by allowing New Jersey's casinos and racetracks to offer betting without the state approving or regulating the activity." But state Sen. Ray Lesniak, who has led New Jersey's push for sports betting, said that he "expected the state to ask the U.S. Supreme Court to hear the case." He said, "It's a long shot. But we can't give up now. We have to keep fighting until it's over, and it's not over" (Newark STAR-LEDGER, 8/10).
NEXT STEPS? In Las Vegas, Matt Youmans writes the court ruled New Jersey "would be violating the Professional and Amateur Sports Protection Act (PASPA)," the federal law prohibiting all but Nevada, Delaware, Montana and Oregon "from offering a form of sports wagering." New Jersey’s attempt "was opposed by the NCAA and all four major professional leagues." Rather than the Supreme Court, the "more realistic next step is to work on repealing PASPA, but that could take three years or more" (LAS VEGAS REVIEW-JOURNAL, 8/10). USA TODAY's Perez & Brennan note the decision "could leave lawmakers in the state to consider a so-called 'nuclear option.'" The setback may "bring an end to the state’s years of trying to legalize sports betting, although New Jersey lawmakers are left with a few routes to pursue: petition the U.S. Supreme Court to take up the case, attempt to pass another bill that finally complies with PASPA or legalize sports betting outright with no oversight by state authorities." Sports and gambling attorney Daniel Wallach said that passing a bill that authorizes unregulated gambling "is the nuclear option." He said, "This could become the ultimate game of chicken. New Jersey could force the hand of the NFL, NBA and Congress and make them all confront PASPA to lift the ban on sports betting in most states. Nobody wants unregulated sports betting. It will come down to if the New Jersey lawmakers have the onions to attempt something like that" (USA TODAY, 8/10).
