The U.S. Supreme Court delayed making a decision on New Jersey’s latest appeal to offer sports betting at casinos and racetracks, instead asking for input from the U.S. Solicitor General’s Office.
“The Acting Solicitor General is invited to file a brief in these cases expressing the views of the United States,” the court said.
The court chose not to hear a previous appeal by the state to overturn a federal ban on sports betting in 2014, so the move was seen as positive for this appeal. Still, it could take several months before a decision by the court on whether to hear the case is made.
By making the request to the solicitor general, the issue will now move to the new administration of President Donald Trump.
The state is seeking to overturn decisions in federal court, which blocked its latest sports betting laws. The state proposed allowing self-regulated sports betting at its casinos and racetracks. The state is trying to get around the federal Professional and Amateur Sports Protection Act of 1992 by allowing unregulated sports betting. The act banned regulated sports betting in all but four states, most notably Nevada.
The state’s move was challenged by the four professional sports leagues and the NCAA, which have regularly opposed the state’s efforts to legalize sports betting. Federal courts ruled that by restricting sports betting to only casinos and racetracks—as well as other restrictions such as an age requirement—the state was still regulating sports betting and struck down the law.
The state, led by Governor Chris Christie who is named as a plaintiff in the case, says sports betting will help revitalize its struggling casino and racing industry. The state has been joined by the New Jersey Thoroughbred Horseman’s Association, which sees sports betting as vital to restoring the state’s racetracks.
The state has argued that the federal prohibition violates state’s rights on several constitutional grounds, including that the federal government cannot commandeer the state’s right to repeal its own laws—in this case its restrictions on sports betting.
Several states including Mississippi, West Virginia, Arizona, Louisiana and Wisconsin have filed briefs in support of the New Jersey’s effort.
The court denied hearings last week on the vast majority of cases it was considering. The fact that the New Jersey case was not denied gave hope to advocates of legalizing sports betting.
“Obviously, the justices are split and want to delve into this issue more deeply,” New Jersey state Senator Raymond Lesniak told NJ.com. “That’s a good sign. “What’s bad about this is it’s going to delay any decision for six months, and maybe even more, but it’s worth the wait.”
Lesniak is one of the state’s strongest proponents for expanding gambling and an announced candidate for governor.
The head of the American Gaming Association also said he was optimistic due to the court’s move.
“We are encouraged that the U.S. Supreme Court has expressed interest in the problems posed by PASPA, the failed law that fuels a $150 billion illegal sports betting market,” said Geoff Freeman, President of the American Gaming Association in a statement. “We are optimistic that the 25-year-old federal sports betting ban will be removed and sports fans will soon have safe, legal ways to engage in sports that also protect the integrity of games.”
The case now lends itself to questions on the Trump Administration’s views on sports betting. Trump—then owner or three Atlantic City casinos—lobbied for sports betting in New Jersey in 1992 when the state missed an opportunity to be exempted from the ban.
However, Trump has not yet named his choice for solicitor general.
It also comes after his choice for Attorney General, Jeff Sessions, said during confirmation hearings that his office may revisit a 2011 Department of Justice opinion that allowed New Jersey to implement online gambling.
If the new administration were to reverse that opinion, New Jersey officials have said they will be back in court quickly.
“If he were to choose to have a different interpretation, we would certainly take him to court in a heartbeat,” Lesniak said in another interview. “We’ll fight him tooth and nail and I’m sure our casinos would be supportive.”
Meanwhile, there was more momentum for legal sports betting in the sport of golf. New PGA Tour Commissioner Jay Monahan said in a recent interview that the tour is keeping an “open mind” about daily fantasy sports and legalized sports betting.
“You look at DraftKings and FanDuel, you look at gaming in the international markets, there’s a lot of opportunity there,” Monahan explained. “There’s some complexity, and that complexity has held us back from moving forward, but we will look at it and have an open mind towards it.”
Monahan became tour commissioner recently, replacing Tim Finchem, who retired after 22 years.
By saying the tour isn’t automatically against sports betting, he joins NBA commissioner Adam Silver and MLB commissioner Rob Manfred in giving hope to sports betting advocates.
Silver has called for nationally regulated sports betting and Manfred has said his league should consider embracing sports betting.
Betting on golf in the U.S. is only legal in Nevada, but DFS websites offer games centering on the pro golf tour. However, many overseas bookmakers also take bets on the PGA Tour.
