Federal ban on sports betting upheld by appeals panel

A federal court of appeals ruled against New Jersey Tuesday in a case challenging a sports gambling law the state passed in 2014 to revive its failing casinos and racetracks.

At issue was how New Jersey’s sports betting law intersected with the Professional and Amateur Sports Protection Act of 1992, which more or less banned sports betting nationwide.

New Jersey had been hopeful heading into the Third Circuit proceedings, as it was there during the last challenge that the idea of repeal was presented as a potential way to circumvent PASPA. Lesniak’s lawsuit was dismissed in 2011, however, by a federal judge who ruled that Lesniak – who at the time did not have the backing of Governor Christie or the state Attorney General’s office – lacked the legal standing to protest the law. The Legislature placed a question on the ballot that fall, and the public, by a 2-1 margin, backed the proposal to offer sports betting at Atlantic City casinos and the state’s racetracks.

Judges Marjorie Rendell and Maryanne Trump Barry were of the majority opinion.

“With Americans betting at least $140 billion on sports illegally each year, it’s clear that current law is not achieving its intended result”, Freeman said.

The leagues again filed suit, and Shipp immediately issued an injunction preventing Monmouth Park – the only track or casino in the state that was pushing for sports betting while the case was still in court – from allowing patrons to place bets on sporting events.

The state made a point to challenge the nation’s four major professional sports leagues and the National Collegiate Athletic Association on the grounds that they were operating with “unclean hands” due to their partnerships with daily fantasy leagues and full-service sports betting in Las Vegas.

Lesniak said the appeals panel got it wrong.

“There is simply no conceivable reading of PASPA that could preclude a state from restricting sports wagering”, Fuentes wrote in his opinion.

“There’s a massive illegal sports betting market that exists, not only in New Jersey, but all across the country”.

The U.S. Supreme Court declined to hear the state’s previous case following the Third Circuit ruling and it appears unlikely that the high court would take up its latest effort, either. I remain convinced that legal sports betting will come to New Jersey. Delaware has limited sports betting. “As the AGA leads an industry-wide task force to study sports betting, we will assess the implications of the court’s decision as the gaming industry continues to develop innovative ways to provide products and experiences that meet consumers’ demands”.