Once again, sports betting in New Jersey will have to wait as the curiously short-sighted American sports leagues get to take their ball and go home. On Friday, U.S. District Judge Michael A. Shipp issued a temporary restraining order, halting the start of a sports wagering regime in the Garden State, at least for now.
It was Thursday, October 16th that Governor Chris Christie signed Senate Bill 2460 into law, a law which lifted the ban on sports betting at New Jersey casinos and racetracks. The bill was overwhelming approved in the state legislature, passing by a 73-4 vote in the General Assembly and by a 27-1 vote in the Senate.
Though New Jersey has long been the east coast hub for brick-and-mortar gambling in the United States, sports betting has never been allowed there, a fact which may come as a surprise to many. That prohibition dates back to 1992 when the Professional and Amateur Sports Protection Act (PASPA) was passed, making sports betting illegal in all states except Nevada, Oregon, Delaware, and Montana. New Jersey was given a one-year window to decide to be added to the list, but it declined, for whatever reason.
As Atlantic City casinos have struggled over the years, though (four have closed this year, and another, the Trump Taj Mahal, also plans to close by year’s end), sports betting has been looked at as a way to possibly inject much needed cash flow into the state’s gaming industry. As such, the state’s voters passed by referendum the Sports Wagering Act in 2011, which lifted the ban. The four major professional sports leagues in the U.S. – the National Basketball Association (NBA), National Football League (NFL), Major League Baseball (MLB), and National Hockey League (NHL) – plus the National Collegiate Athletic Association (NCAA) teamed up to fight it and won and the Act never took effect.
This September, Governor Christie issued a Law Enforcement Directive, telling the casinos and racetracks that they would not be bothered by law enforcement should they decide to offer sports wagering. Then, this month, he actually signed the bill making it official. One catch was that there is no licensing structure for sports betting. Rather, the prohibition is just eliminated. In essence, sports betting isn’t officially “legal,” it’s just not illegal if offered by racetracks and casinos who are already licensed for other forms of gambling.
Of course, the sports leagues struck back once again and once again, they have at least initially succeeded. One interesting part of the judge’s ruling is that the leagues must post a $1.7 million bond to offset possible damages suffered by the New Jersey Thoroughbred Horsemen’s Association. The Association holds the lease on the Monmouth Park racetrack, which planned to start offering sports wagering on Sunday.
While disappointed, Dennis Drazin, an advisor to Monmouth Park’s operator Darby Development, still feels confident that things will work out. According to the Press of Atlantic City, he said, “We have prepared for this event for quite some time and have stated from the onset that we will be ready on day one. While that won’t be this Sunday, we remain committed to that promise and will be operational as soon as possible.”
He added, “….the injunction only applies to the four leagues and the NCAA and still allows for betting on other sports such as golf, tennis, boxing, MMA fighting, NASCAR and soccer.”
Of course, as we’re smack-dab in the middle of football season, Monmouth Park certainly wants to be able to offer bets on the NFL and NCAA football. It would probably trade all of the boxing, golf, and tennis wagering in the world for football.
Judge Shipp has set a date of November 20th for lawyers from the opposing sides to make their arguments in court.
