An appeals court heard oral arguments in New Jersey’s ongoing four year battle to allow its Atlantic City casinos and racetracks to offer Vegas-style sports betting. The current hearings feature 12 circuit judges who listen to arguments and ask questions. To win this case, New Jersey needs to convince at least seven out of the 12 judges to vote in its favor.
Twice in the past, New Jersey has lost its cases against five sports organizations, including the NFL and the NCAA as they fought tooth and nail against legislation in the Garden State which allows for sports betting.
On Wednesday, the Third Circuit Court of Appeals heard state legal representative testimonies, as well as those by opponents of the plan. New Jersey claims that there was a contradiction between the 2012 and the 2014 rulings against New Jersey sports betting, which led to the Third Circuit agreeing to rehear the case en banc, i.e. that all the judges will participate in the rehearing.
Industry analysts believe that New Jersey has a tough battle ahead, given that three out of the 12 judges present on the panel have voted against one of the state’s sports betting laws in the past. It has also been pointed out that the judges asked New Jersey legal representative Ted Olson particularly tough questions on Wednesday. Analysts predict that the mostly conservative panel will side with the sports leagues, although the call will be close. It could take until early summer for the judges to make their announcement about a final ruling.
If New Jersey loses this round, what are its options to see a legalized and regulated sports betting industry going forward? One of its options is to ask the Supreme Court – once again – to hear its case. New Jersey wants to have itself removed from the restrictions placed on states in the 1992 Professional and Amateur Sports Protection Act (PASPA). Only four of the 50 states are allowed to offer sports betting after they were grandfathered into the law.
New Jersey wants to convince the Supreme Court that PASPA is unconstitutional, despite the fact that the state declined to be grandfathered into the law in 1992. Ruling in New Jersey’s favor could have huge implications for the rest of the US gambling landscape, especially with the latest Daily Fantasy Sports saga. A positive ruling could trigger multiple other states seeking their own legal sports betting operations.
