New Jersey is continuing its battle to get sports betting at casinos and racetracks as the state legislature overwhelmingly approved a bill that brings the state’s sports betting laws in line with the state’s attempts to circumvent a federal ban. Governor Chris Christie quickly signed the bill into law.
State officials believe that the federal ban only applies to sports betting regulated by the state. The new law partially repeals laws—such as licensing and permitting regulations—for sports betting in the state. That brings the state’s law more in line with a bill adopted in 2012 to allow sports betting at casinos and racetracks.
A previous attempt at a bill was vetoed by Governor Chris Christie because he felt the bill did not sufficiently spell out that sports betting would now be governed by private entities and not the state. The new version addresses those concerns.
New Jersey has been fighting to allow sports betting for several years, but its move has been challenged by professional sports leagues, the NCAA and the U.S. Department of Justice.
Federal courts sided with the leagues and prevented the state from implementing its sports-betting law, but during arguments, lawyers for the DOJ argued that nothing prevented New Jersey from simply repealing its own laws against sports betting and allowing the practice as long as it was not regulated by the state.
After initially rejecting the first attempt by the legislature to act on that interpretation, the Christie Administration reversed its position and the state Attorney General released an opinion saying that unregulated sports betting would be permissible in the state.
Christie, however, has asked a federal judge to rule on the interpretation. U.S. District Judge Michael Shipp—who initially blocked implementation of the state’s sports betting law—is scheduled to hear arguments on the case next month.
“As I’ve said all along, I am a strong proponent of legalized sports wagering in New Jersey,” Christie said in a statement. “But given earlier decisions by federal courts, it was critical that we follow a correct and appropriate path to curtail new court challenges and expensive litigation. I believe we have found that path in this bipartisan legislative effort.”
Again the professional leagues and the NCAA have challenged the state’s move calling it a “blatant attempt to circumvent” the court’s injunction.
Supporters of sports betting, however, see the measure as vital to helping the state’s slumping racing industry and also the struggling casino market in Atlantic City.
Democratic State Senator Raymond Lesniak authored the bill.
“This will help clear away the legal obstacles and provide a clear path to finally bringing sports betting to New Jersey,” Lesniak said in a statement. “And it couldn’t happen at a more important time. It will be a lifeline to Atlantic City casinos and for the horse racing industry, creating jobs and economic opportunities that will serve the city and the state for years to come. Sports betting is now much closer to a reality in New Jersey.”
Despite the administration’s ruling, only one venue, Monmouth Park racetrack, has said it is ready to start offering a sports book. Still, the track—which is partnered with UK bookie William Hill—has not moved yet and most analysts feel all sides are waiting for a ruling from Shipp.
Monmouth Park racetrack operator Dennis Drazin, however, has announced the establishment of the Independent Sports Wagering Association to “self-regulate” sports betting in the state. Drazin said the association would enact an ethics code and rules and regulations “to promote a safe, secure, and reliable sports wagering environment.”
Meanwhile, Monmouth Park and William Hill have already completed a sports wagering facility at the track. Officials for the bookmaker have said that the New Jersey sports betting market could be three times that of Nevada—which is exempt from the federal ban—due to its proximity to major population centers such as New York and Philadelphia.
Voters in New Jersey overwhelmingly approved a referendum to allow sports betting in the state in 2012, but the referendum did say the federal ban would need to be repealed.
In another matter, the Senate approved an economic incentives bill that makes it possible for non-gambling businesses in Atlantic City to get larger tax incentives for opening and expanding their businesses in the resort. The bill includes the city as a Garden State Growth Zone under the state’s economic incentives plan.
Christie conditionally vetoed the first economic incentives bill asking that Atlantic City be included as a growth zone. The revised bill also now goes to Christie for his signature.
