New Jersey’s acting attorney general has filed briefs in federal court designed to show that the state’s gaming regulatory agencies will not regulate sports betting in the state—a point that state feels makes sports betting possible in the state despite a federal law against it.
Key to the state’s argument in its latest attempt to enact sports betting is the fact that a federal ban on sports betting says states cannot regulate the wagering. Acting New Jersey Attorney General John J. Hoffman, however, has ruled that privately-regulated sports betting in the state does not run afoul of the federal ban.
The state has repealed its restrictions on sports betting save those in a 2012 bill that allows sport betting at casinos and racetracks.
Moving quickly, one racetrack—Monmouth Park which is partnered with UK bookie William Hill—was ready to begin sports betting when the professional sports leagues and the NCAA moved to block the new law—much as they have moved to block every attempt by the state to start sports betting.
A federal judge then issued a temporary restraining order blocking Monmouth Park, and once again putting the state in court to defend their sports betting laws. Both sides were required to file arguments after the restraining order was issued.
Hoffman has sent the court declarations from three state regulatory bodies backing his contention that the state will not be regulating sports betting.
The heads of the state’s Casino Control Commission, Division of Gaming Enforcement, and Racing Commission confirmed that they “will not, and legally cannot, regulate sports wagering activities in casinos and racetracks because the 2014 Act prohibits them from doing so.”
The state’s attorneys argue that the declarations create “an insurmountable factual bar” against the league’s argument that the state will be regulating sports betting since it regulates the casinos and racetracks themselves.
Meanwhile, officials continue to argue that with the NFL playing games in London—where sports betting is legal—and embracing the form of wagering on fantasy football sites, that the league is being hypocritical and, according to the state Thoroughbred Horsemen’s Association has “unclean hands.”
The state’s arguments for sports betting hinge on rulings from Appellate Courts in earlier attempts to implement sports betting that said the state did have the option of simply repealing its sports betting restrictions. The leagues have argued that means the state must either maintain its sports betting laws or repeal them entirely—which would include its new law.
The state disputes that, and says the new law privatizes oversight of sports betting to the casinos and racetracks.
“The fact that the state issues licenses to barbers hardly means that the other non-barbering activities taking place in a barber shop (e.g., conversation), are being conducted “under the auspices” of the barbering license, much less that the barbering license confers an imprimatur of state approval on the other activities,” Hoffman wrote.
The state also continues to point out that NBA commissioner Adam Silver was recently quoted as saying that legal sports betting in the country is inevitable, and will ultimately help the leagues create interest in their product.
The case is before U.S. District Court Judge Michael Shipp, who already struck down a New Jersey sports betting law in the past. The leagues and NCAA are seeking a permanent injunction against the sports betting law.
The leagues now will respond to the state’s briefs. A full hearing on the law is scheduled for November. 20.
Shipp’s involvement, however, is being challenged by New Jersey state Senator Raymond Lesniak—one of the strongest advocates for sports betting in the state—who is asking the judge to recuse himself from the case.
Shipp is the older brother of a former NFL running back, and current University of Massachusetts assistant coach Marcel Shipp.
“This is a strong appearance of a conflict of interest that could compromise Judge Shipp’s ability to make an objective decision,” Lesniak said.
Meanwhile, a report on NJ.com has outlined what is at stake for New Jersey—estimates say sports betting in the state could be an $11 billion business—by looking at Delaware’s sports betting lottery system.
Delaware was one of four states “grandfathered” to allow sports betting under the terms of the Professional and Amateur Act of 1992. Delaware was grandfathered due to an older lottery style of NFL picks tried in the 70s. But the state’s lottery vendors have been offering parlay votes on NFL games since 2012.
In 2009 the state tried to allow more conventional betting, but were blocked in the courts.
The state then introduced a revival of its parlay betting—bets on multiple games which all have to hit for a win—through the Delaware Lottery that year at the state’s three racetrack/casinos. It allowed retail stores and taverns to offer bets in 2012 with the restriction that big winners could only cash their tickets at the racetrack/casinos.
“The retailers have been very enthusiastic about having another popular ticket to sell,” Vernon Kirk, executive director of the Delaware Lottery told the website. “And the casinos like the fact that if you win more than $600, you have to go to one of their sports books to cash it. That customer might have a beer, eat lunch or go to the blackjack table while they’re there.”
The report found a brisk business for the parlay betting including many players from New Jersey and Pennsylvania who slipped across the state border to make bets.
In New Jersey, only Monmouth Park racetrack has moved forward with a plan to offer sports betting, having built a new sports book room in conjunction with William Hill. The state’s casinos have been playing a wait and see game and are reportedly fearful of running afoul of the federal law, which could hurt their licensing in other jurisdictions.
“If everybody says, ‘We’re not going to engage in this,’ and there’s no one willing to try something, then there’s a law on your books and it doesn’t come to fruition,” Dennis Drazin, a lawyer and principal advisor for the track told the Associated Press. “Somebody has to be willing to take the leap. Somebody has to be willing to step up to the plate.”
Though New Jersey voters approved a referendum to allow sports betting in 2011, a recent poll conducted by Seton Hall University found that support for sports betting in the state isn’t strong.
Forty percent of people surveyed October 27-29 by the school’s Sharkey Institute said sports gambling would be “good thing” for the state. The poll found 43 percent said it would be a “bad thing” and 17 percent said they didn’t know.
