New Jersey Governor Chris Christie isn’t the only one advocating to lift the national sports betting ban. Momentum is building to eliminate the Professional and Amateur Sports Protection Act (PASPA).
Federal Sports Betting Ban
Enacted in 1992, the PASPA specifically prohibits governmental entities, including the states, from authorizing sports wagering. The only current exceptions are the states of Nevada, Oregon, Montana and Delaware. The federal sports betting law also authorizes professional and amateur sports organizations, as well as the United States Attorney General, to file lawsuits to enforce PASPA provisions.
Supporters of the PASPA maintain that the law is needed to protect the integrity of the game and help deter gambling addiction. Former U.S. Senator and NBA star Bill Bradley stated that “[a]thletes are not roulette chips, but sports gambling treats them as such. Fmr. Sen. Bradley also stated that “If the dangers of state sponsored sports betting are not confronted, the character of sports and youngsters’ view of them could be seriously threatened.”
Despite the federal ban, sports wagering is on the rise. In 2016, Americans wagered more than $15 billion on the Super Bowl and the National Collegiate Athletic Association (NCAA) men’s basketball tournament. A staggering 97 percent of the foregoing bets were placed illegally. Given the billion-dollar black market for sports gambling, legalization is increasingly viewed as a means to stimulate the economy, particularly since legislation seems to only drive it underground. A poll by Public Opinion Strategies and Greenberg Quinlan Rosner Research found that 57 percent of independents, 58 percent of Republicans, and 50 percent of Democrats favor lifting the federal sports betting ban.
In 2012, New Jersey passed a law establishing a regulatory framework for legalized sports betting. Thecountry’s major professional sports leagues and the NCAA filed a lawsuit, which was joined by the Department of Justice. In its defense, the State of New Jersey argued that the federal ban is unconstitutional. It specifically maintained that the power to regulate gambling and benefit from the revenue it generates should rest with the states and not the federal government. New Jersey further argued that the PASPA violates the equal protection clause of the Fourteenth Amendment because it is not applied equally across all states. The Third Circuit rejected the constitutional challenge and concluded that the State could not regulate sports betting without running afoul of the PASPA. However, the appeals court held that the states retained “much room . . . to make their own policy” and were free to “enforce the laws they choose to maintain.”
Seeking to comply with the Third Circuit’s decision, New Jersey passed a 2014 law that partially repealed State laws prohibiting sports wagering. The sports leagues again filed suit. In response, the State now alleges that it is unconstitutional for the PASPA to dictate the extent to which the states must maintain their prohibitions on sports wagering.
To date, New Jersey has been unsuccessful in convincing a court to agree that the PASPA is unconstitutional. However, the Third Circuit did acknowledge that Gov. Christie is not the only one to raise issues with the PASPA. “PASPA is not without its critics,” the Third Circuit wrote. “It has been criticized for prohibiting an activity, i.e., sports gambling, that its critics view as neither immoral nor dangerous. It has also been criticized for encouraging the spread of illegal sports gambling and for making it easier to fix games, since it precludes the transparency that accompanies legal activities.”
The recently formed American Sports Betting Coalition (ASBC) is actively lobbying to overturn the federal sports betting ban. With a diverse membership that includes the Fraternal Order of Police, National District Attorneys Association, U.S. Conference of Mayors and National Conference of State Legislatures, the legislative solution could prove to be more successful than the judicial one. New Jersey residents, and other states interested in lifting the federal sports betting ban anxiously await the Supreme Court’s decision.
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
