Donald M. Pepe
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New Jersey Sports Betting Dealt Major Setback
Author: Donald M. Pepe
Date: March 12, 2013
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Legalized sports betting will likely not be in place for next year’s Super Bowl. U.S. District Judge Michael Shipp recently issued a permanent injunction against New Jersey’s sports gambling law.
As we have previously discussed on this Business Law Blog, the Department of Justice, along with NBA, MLB, NHL, NFL, and NCAA, have challenged the state’s efforts to implement a New Jersey law authorizing sports betting. They argue that the law violates the federal Professional and Amateur Sports Protection Act (PASPA). The PASPA specifically prohibits governmental entities, including the states, from authorizing sports wagering.
The state of New Jersey argues that the federal ban is unconstitutional. However, the court ultimately disagreed. Shipp held that Congress was acting well within its powers when it determined “that all such sports gambling is harmful”; moreover, its judgment should not be “substituted by the court.”
As he further explained, “Judicial intervention is generally unwarranted no matter how unwise a court considers a policy decision of the legislative branch. As such, to the extent the people of New Jersey disagree with PASPA, their remedy is not through passage of a state law or through the judiciary, but through the repeal or amendment of PASPA in Congress.
Despite the ruling, New Jersey Governor Chris Christie and state lawmakers have vowed to appeal. For now, the state’s gaming industry will have to refocus its attention on boosting revenues through online gaming, which was recently legalized in New Jersey.
If you have any questions about this case or how it may impact your business, please contact me, Donald Pepe, or the Scarinci Hollenbeck attorney with whom you work.
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