New Jersey sports betting hopes on life support after negative Solicitor General opinion
State’s bid for regulated betting on its last legs although politicians pledge to “not give up the fight”
The US Solicitor General has recommended the Supreme Court does not hear the New Jersey sports betting case, putting the state’s push for legalized sports betting on its last legs.
The case centered around New Jersey challenging whether the federal ban on sports betting, PASPA, was unconstitutional because it infringed on states’ rights.
The acting Solicitor General Jeffrey Wall said the court did not need to hear the case because there was little disagreement in federal courts as to the legality of PASPA, and there was a lack of support from other states to overturn the law.
Wall wrote: “Indeed, although PASPA has been on the books for a quarter century, it has apparently given rise to only a handful of suits, all in the Third Circuit.”
No other State has enacted legislation claimed to conflict with PASPA, and even petitioners’ amici States do not profess any desire to enact laws comparable to the 2014 Act.
“The absence of a conflict on the question presented and the paucity of PASPA litigation of any kind counsel against this Court’s review.”
Despite the negative brief however, the Supreme Court is not bound to listen to the solicitor general, and could still hear the case, if four of the nine sitting justices decide to.
“This case raised some interesting questions about federal power and state’s rights,” and it could still be heard, said sports law attorney Daniel Wallach.
The court will announce its decision before its summer hiatus on June 26.
If the court decides not to hear the case, New Jersey could turn to its “nuclear option”, which would be a total repeal of state’s prohibition on sports betting, allowing anyone to offer sports betting without any regulation.
Dennis Drazin, advisor to the New Jersey Thoroughbred Horsemen’s Association, said he has spoken to state legislators and hoped to move forward with a full repeal of PASPA in New Jersey within the next month.
“We certainly know from all the courts and the briefs from the leagues and the Solicitor General that a full repeal is something that cannot be challenged,” Drazin told app.com.
“Now, the leagues may try to go back to court again, but every court has said if you want to do the full repeal we’re good to go, so that is the plan.
“Governor Christie has been a strong supporter, and would I would anticipate he would support this move also.’’
Senator Ray Lesniak told ESPN he would “not give up the fight”.
In related news, Frank Pallone, the ranking member on the House of Congress’ Energy and Commerce Committee, introduced new legislation to repeal the federal prohibition on sports betting and allow states to legalize online gambling on Thursday
The Gaming Accountability and Modernization Enhancement (GAME) Act, would give oversight of the activity to the Federal Trade Commission and establish a framework of consumer protections that states would need to comply with before offering bets.
“Despite the federal gaming laws in place today, Americans are betting up to $400bn a year on sporting events alone,” Pallone said in a statement announcing the legislation. “It’s time to recognize that the laws are outdated, and the GAME Act will modernize them by increasing transparency, integrity, and consumer protections.”