Monmouth Park racetrack in Oceanport New Jersey’s lawsuit charging that opposition to the state’s sports betting law by the professional sports leagues and the NCAA cost it millions in lost revenue has been denied by a federal court
U.S. District Judge Michael Shipp has denied the New Jersey Thoroughbred Horsemen’s Association—which acted on behalf of the track—suit seeking a $3.4 million injunction bond plus “interest and damages,” stemming from a lawsuit originating in 2014 when the state first passed a sports betting law.
In October 2014, Shipp filed a temporary restraining order against Monmouth Park prohibiting it from offering sports betting as the league’s challenged the state’s law in court. At that time, Shipp ordered the leagues to compensate the track with a $3.4 million bond until the date of the trial which was scheduled for November.
However, various federal courts struck down New Jersey’s sports betting laws until May 2018 when the state finally won a decision before the U.S. Supreme Court which struck down a federal ban on sports betting.
The new suit was brought by the association against the NFL, NBA, NHL, MLB and NCAA, asking for upwards of $150 million in damages due to lost sports betting revenue. The association argued that since the high court eventually ruled that the federal ban was unconstitutional, the track was unfairly blocked form offering sports betting by the league’s opposition.
Shipp, however, denied those damages saying that sports betting was not legal before the Supreme Court decision.
“Here, in 2014, PASPA was constitutionally valid. Thus, the law as it existed in 2014 clearly favored the leagues, and it would be unreasonable for the court to allow NJTHA to recover under the injunction bond in light of the leagues’ correct interpretation that the 2014 Repealer Law authorized sports betting in violation of the governing law at the time. The court, accordingly finds good cause exists to deny NJTHA damages under the injunction bond,” Shipp wrote in his decision.
Track officials said they plan to appeal the decision.
In another story, Churchill Downs has said it intends to launch sports betting in New Jersey before the end of the year. The company had expected to launch in early 2019. Churchill Downs is partnered with the Golden Nugget casino in Atlantic City for sports betting.
CEO Bill Carstanjen said the company is currently going through the New Jersey license process with the state Department Gaming Enforcement
“In addition, our gaming technology partner, SBTech, is in the process of getting their platform licensed,’ he said in the company’s third quarter earnings report. “We believe we will be operational in the fourth quarter with the suite of online casino and sports betting products. As we’ve discussed previously, our TwinSpires team will be responsible for running our online wagering business utilizing the SBTech platform. Our TwinSpires team includes strong talent from iGaming markets outside of the US with deep experience in sports wagering and online casino products.”
Once the company begins sports betting in New Jersey, it also plans to apply for a license in Pennsylvania.
“We are also very interested in sports wagering in Pennsylvania, and we will file for that license when we have clarity on our transaction closing date,” CEO Bill Carstanjen said. “It is worth noting that a sports wagering license would allow brick and mortar sportsbook at Presque Isle Downs as well as an online offering available throughout the state.”
