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DOJ, Sports Leagues Get Involved in New Jersey Sports Betting Law
Author: Scarinci Hollenbeck, LLC
Date: February 1, 2013
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A contentious new law in New Jersey that would allow residents to place wagers on sports has attracted the ire of the U.S. Department of Justice, which has now joined forces with colleges and professional sports leagues seeking to stop the legislation from going into effect.
The controversy stems from a law signed last year by Gov. Chris Christie, which would permit sports betting at the state’s racetracks and at Atlantic City casinos. Under the legislation, these organizations could apply for licenses and allow gambling for both amateur and professional sports. Federal sports law currently prohibits this practice. Following the decision, the National Collegiate Athletic Association, the National Football League, Major League Baseball, the National Basketball Association and the National Hockey League sued the state to put an end to its implementation.
In their filing, the leagues argued that the legislation would “irreparably harm amateur and professional sports by fostering suspicion that individual plays and final scores of games may have been influenced by factors other than honest athletic competition,” according to Reuters.
New Jersey argues that the law is unconstitutional, in that it favors some states over others and challenges states’ rights by “commandeering” the legislative process, according to the New Jersey Star-Ledger. Sports betting is currently legal in Nevada, Delaware, Oregon and Montana, and projections show that sports betting has the potential to generate billions of dollars in revenue, the newspaper adds.
The Justice Department recently filed suit in a New Jersey federal court, saying it too finds that the state law violates federal legislation that restricts sports gambling. Judge Michael Shipp allowed the government to involve itself in the case, and said the DOJ may participate in oral arguments that are to take place on February 14.
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