Sports Betting Coming To States Thanks To Supreme Court NJ Ruling

The U.S. Supreme Court has ruled 7-2 that the federal ban on sports gambling is unconstitutional, opening the door for New Jersey to finally allow sports betting after nearly a decade of trying.

The decision comes months after the Supreme Court heard the case challenging the constitutionality of a federal law that bans most states, including New Jersey, from sports betting. Ex-Gov. Chris Christie sat in the front row during the December hearing.

New Jersey acted quickly following the ruling. Senate President Steve Sweeney and state Sens. Jeff Van Drew and Senator Vin Gopal introduced legislation Monday that would authorize and regulate sports gaming in New Jersey, putting in place the regulatory framework needed to allow casinos and racetracks to start taking bets.

Justice Samuel Alito, a New Jersey native, delivered the majority opinion, saying "the legalization of sports gambling requires an important policy choice, but the choice is not ours to make."

"Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own," he said. "Our job is to interpret the law Congress has enacted and decide whether it is consistent with the constitution."

Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented. Ginsburg wrote that Congress "permissibly exercised its authority to regulate commerce by instructing states and private parties to refrain from operating sports-gambling schemes."

New Jersey Gov. Phil Murphy said he was "thrilled to see the Supreme Court finally side with New Jersey and strike down the arbitrary ban on sports betting imposed by Congress decades ago."

Murphy said New Jersey has long been "the lead advocate in fighting this inherently unequal law, and today’s ruling will finally allow for authorized facilities in New Jersey to take the same bets that are legal in other states in our country."

"Today’s victory would not have been possible without the incredible bipartisan effort from so many in our state, particularly former Governor Christie and former state Sen. Raymond Lesniak," he said. "I look forward to working with the Legislature to enact a law authorizing and regulating sports betting in the very near future.”

Christie also released a statement on Twitter Monday, saying it's a "great day for the rights of states and their people to make their own decisions."

"New Jersey citizens wanted sports gambling and the federal government had no right to tell them no," he said. "The Supreme Court agrees with us today. I am proud to have fought for the rights of the people of New Jersey."

Sixty-three percent of New Jersey voters approved a measure to legalize sports betting to help declining gambling destinations, such as Atlantic City and Monmouth Park, seven years ago. But professional sports leagues challenged the measure, saying a federal law passed in 1992 that bans state sports betting with some exceptions.

The Professional and Amateur Sports Protection Act makes it unlawful for a state to sponsor, operate, advertise, promote, license, or authorize by law sports wagering.

Four states were exempted from the law – Nevada, Montana, Delaware, and Oregon. Christie took the case to the Supreme Court after New Jersey tried to pass a new law in 2014, and met the same resistance.

Sweeney said the ruling allows New Jersey to follow through on a public referendum allowing wagering on sporting events.

“This is a decisive and extremely gratifying victory for New Jersey. We are on the right side of history with this case with a decision that will allow us to follow through with legally-sanctioned sports betting," he said.

Sweeney said New Jersey can now seize the opportunity with "a new sector of gaming that will help create jobs, generate economic growth and be an important boost to the casino industry and horse racing."

He said sports betting is already a common practice and making it legal is the "most responsible and most beneficial thing to do."

“We fought for more than seven years on this case, overcoming the hurdles of the legal process and standing up against formidable opponents," he said. "The fact that we met those challenges and won the approval of the highest court in the country is a byproduct of our determination and the legitimacy of our case."

Sweeney, Lesniak and the New Jersey Legislature were “intervenors” in the consolidated case (Christie, et al vs. the NCAA and the New Jersey Thoroughbred Horseman’s Association vs. the NCAA), filing joint petitions that effectively “repealed” the prohibition on sports betting.

Sweeney said that New Jersey is positioned to capitalize on the ruling quickly and that he expects the sports betting facilities to become operational this year.

The new New Jersey bill would allow casinos in Atlantic City and racetracks and some former racetracks in the state to conduct wagering on professional and collegiate sporting events with the Casino Control Commission and the Division of Gaming Enforcement regulating the operations.

Those placing wagers would have to be at last 21 years old. Betting would be prohibited on any athletic events taking place in New Jersey and on any competitions including a New Jersey college, regardless of where it takes place. Betting on high school events would also be banned.

“We want to act quickly to capitalize on the Court’s decision so that we can get sports gaming in place and operating in New Jersey,” said Sweeney. “We have a competitive advantage with a long history of casino gaming including a regulatory infrastructure that has been operating for decades. It will be a natural transition to incorporate sports gaming by the casino and the racetracks.”

The legislation would provide for an 8 percent gross revenue tax on in-person wagering and a 12.5 percent levy on online sports bets. The tax revenue would be dedicated to programs for senior citizens and the disabled. An additional tax of 1.25 percent on gaming revenue actually received by racetracks would be distributed to the host municipalities and counties.

Prevented from owning or operating any sports betting facility or business will be members of sports governing bodies, as well as athletes, coaches, referees and team owners.

“The best way to protect the integrity of sports gaming is to make sure there are no conflicts of interest and no competing loyalties on the part of those directly engaged in the athletic events,” said Sweeney.

The Division of Gaming Enforcement and the New Jersey Racing Commission would have responsibility for licensing and will promulgate regulations for the conduct and operation of the sports wagering activities. The New Jersey Racing Commission would also be involved in approving the operation of a sports pool at a racetrack.