Category Archives: Sports Betting

The Trump Administration and 30 other Advocacy Groups Filed Supreme Court Briefs supporting the NFL and other’s Opposition to the New Jersey Sports Gambling Case

Casino Watch Focus has reported on the ongoing saga of events surrounding New Jersey’s attempt to legalize sports betting in their state. All attempts have resulted in failure and this latest attempt has managed to reach the Supreme Court. The issue at hand is the constitutionality of the Professional and Amateur Sports Protection Act (PASPA). The Federal government has long held sport betting to be illegal outside of a few jurisdictions. They passed PASPA and allowed existing jurisdictions like Las Vegas to continue to offer it. The rest of the states would not be allowed to legalize it. Years later, after New Jersey missed its window to seek sports betting, they have decided they and other states should be allowed to regulate it and that Federal Government interference is a violation of federalism. The NFL, along with the other pro sports leagues and the NCAA, have long opposed expansion of sports betting. Casino Watch Focus reported that they filed their own brief to the Supreme court outlining that the federal government cant command a state government into an action, an act known as impermissible commandeering, but they are fully allowed to the federal government to preempt state action to contravene federal policy. The Department of Justice has long held this same belief and now the Trump Administration has formally filed its own brief outlining PASPA supporting arguments. An online source reports: 

President Donald Trum has been feuding with the NFL in recent weeks over the national anthem controversy. But the Trump administration, via the *Solicitor General’s office*, is supporting the NFL in its ongoing case to stop *New Jersey* from offering sports betting. The Solicitor General says that SCOTUS should uphold the lower courts’ finding that New Jersey’s partial repeal of its sports betting ban did not go far enough to be legal under PASPA.

The leagues have argued that the New Jersey law essentially licenses casinos and horse racing tracks to conduct sports wagering. That puts the state in violation of PASPA, the SG argues. New Jersey argues that PASPA unconstitutionally commandeers it to keep its own laws on the books when it comes to not allowing sports betting. But the SG argues PASPA’s “preemption of state laws authorizing sports-gambling schemes does not violate the Tenth Amendment.”

In addition to the briefs filed by the major sports organizations, the NCAA, and the DOJ, 30 advocacy and political organization have combined to offer their own brief. The addressed the federalism issue head on, but also expanded on why the federal government has compelling interest is preempting gambling expansion on the state level, namely the social costs. An online source explains:

On Monday a broad coalition of organizations led by Stop Predatory Gambling filed an amicus brief (“friends of the court”) in the Supreme Court of the United States, supporting the NCAA, NFL and major professional sports in their opposition to New Jersey’s case seeking to bring sports betting into the state.

Stop Predatory Gambling And a Range of Political and Advocacy Groups Support PASPA In a Brief Focusing on Social Costs of Gambling. The 30 groups, which include the Public Health Advocacy Institute and Concerned Women for America, spend the majority of the 33-page brief discussing negative effects and social costs of gambling.

The groups are “united in their opposition to the exploitation of American communities through commercial gambling” the brief reads.

 Later in the brief, the groups highlight research papers discussing gambling addiction, personal bankruptcies and elevated divorce rates associated with problem gambling, as well as financial costs to states themselves (such as crime) in connection with increased gambling activity. The paper also points a 2015 study by Rachel A. Volberg et al. of the University of Massachusetts School of Public Health and Health Sciences, showing a higher prevalence of gambling problems among sports bettors as compared with other forms of gambling, such as instant lottery games and casino games.

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Unsurprisingly, Casino Lobby Joins New Jersey in Attempt to Sway Supreme Court in favor of Legalized Sports Betting

Casino Watch Focus has reported on the many attempts by New Jersey to legally allow sports betting in their state, despite federal law that makes it illegal. Every attempt made has resulted in the courts shutting down the illegal sports gambling. The case will finally be resolved one way or another later this year when the Supreme Court will examine the issue. The list of opponents of this expanded sports betting is long and includes all the major sports and collegiate organizations such as the NFL, MLB, NBA, NHL and the NCAA. Not surprisingly, the casino lobby is coming to the side of New Jersey and they have submitted a brief to the Supreme Court. The Washington Examiner reports: 

The American Gaming Association filed a brief on Tuesday supporting Republican New Jersey Gov. Chris Christie in his upcoming Supreme Court fight with top U.S. athletic leagues over sports betting. Christie’s team argues that federal law banning sports betting violates states protections under the 10th Amendment. More than two decades ago, New Jersey failed to take advantage of a window in federal law to run sports gambling, but then decided to do so on its own in 2011.

The National Collegiate Athletic Association challenged the New Jersey law, along with the NBA, NFL, NHL, and Major League Baseball. The Supreme Court has yet to set a date for oral arguments this term in the sports gambling case, which will be closely watched as its outcome could change sports gambling rules throughout the country.

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Supreme Court Decides to Hear New Jersey Sports-Betting Case

Casino Watch Focus has reported on the ongoing efforts of New Jersey to legalize sports betting. Each attempt has been opposed by the major sports leagues and the NCAA and each attempt has resulted in failure. Their latest attempt is attempt lead to another ruling against them in federal court, so they appealed to the Supreme Court. Many thought the odds of the court picking up the case were long, especially after the Trump Administration’s Acting Solicitor General Jeffrey Wall submitted a brief to the Court siding against the New Jersey law. Such reports don’t always lead to a denial of the Court to pick up the case, but the odds are slim as the Court tends to side with the Solicitor General in nearly 80% of cases. The odds of the law being upheld are still rather small, as every attempt made so far has been shut down by the courts, as Yahoo Sports explains:

On Tuesday, the United States Supreme Court announced it would hear an appeal to reinstate a 2012 New Jersey law that would legalize sports wagering at the state’s casinos and racetracks.

While there is still a long, long way to go, it is as significant of a development in the legalization of sports betting as there’s been in years.

A series of lower courts said the state law, championed by New Jersey governor Chris Christie, was in conflict with the federal Professional and Amateur Sports Protection Act of 1992 (PASPA). That law prohibits sports wagering outside of Nevada and, in limited ways, three other states.

There is certainly no guarantee the Supreme Court will rule in favor of New Jersey; every lower court has sided with the federal government. The 3rd U.S. Circuit Court of Appeals out of Philadelphia ruled 10-2 in favor of the feds. Christie, a former federal prosecutor, knew there would be a considerable legal fight, although he likely never anticipated losing every time.

This case centers around the PASPA, but its possible for New Jersey to lose this case and state level sports gambling to still be made legal in the US. If Congress were to repeal or make changes to the law, then it could open the door to all states. The Washington Post reports: 

And even if New Jersey loses its Supreme Court case, its fight for sports gambling has put the issue in the national spotlight, generating a new conversation about whether a partial ban on sports betting is the best way forward.

Last month, a congressional committee introduced draft legislation that would repeal PASPA and allow states to legalize online gambling, with oversight provided by the Federal Trade Commission. Frank Pallone Jr. (D), the New Jersey congressman who is spearheading the federal legislation, said Tuesday he was cheered by the news out of the Supreme Court.

A number of other states beyond New Jersey also have considered legislation that would legalize the practice.

No date has been set for the one-hour oral arguments in front of the Supreme Court justices, though a timeline for the case appears to be taking shape. Each side will file briefs supporting their arguments over the next few months.

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New Jersey’s Efforts to have the Supreme Court hear it’s Sports Betting Case have been seriously Undermined by Current Administration

Casino Watch Focus has reported on the many failed attempts by New Jersey to legalize sports betting in its state. There most recent legislative attempt was shut down by the court and they have appealed the case to the Supreme Court. Major opposition have been seen from the NCAA, NFL, NHL, MLB and the federal government. The most recent communication to the Supreme Court is another blow to New Jersey’s sports betting hopes and once that might be difficult to overcome. An online political source reports the details: 

When the U.S. Supreme Court in January delayed a decision on whether consider allowing sports betting in New Jersey, justices said they first wanted to hear what President Donald Trump ‘s administration had to say.

The administration finally weighed in, and its message was not what the state wanted to hear: Acting Solicitor General Jeffrey B. Wall said New Jersey didn’t have a case.

The state’s effort to get around the federal ban on sports betting by repealing state laws prohibiting such wagering and allowing to proceed without regulation “is no different than a positive enactment authorizing such gambling,” Wall wrote in a 24-page brief.

The Supreme Court can still choose to hear the case, but the odds don’t seem to be in New Jersey’s favor. ESPN reports why the recommendation to the Supreme Court to not accept the case is so detrimental to New Jersey:

The United States Solicitor General’s office filed a brief on Wednesday recommending that the Supreme Court decline to review New Jersey’s latest effort to offer legal sports betting. The Supreme Court, which in January asked the Department of Justice for its view on the case, is expected to decide whether to accept New Jersey’s appeal by the end of June. According to a 2009 academic study the Supreme Court follows the recommendation of the Solicitor General 79.6 percent of the time. 

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New Federal Sports Gambling Bill Emerges in Congressional Committee

Casino Watch Focus has reported on the many attempts of New Jersey to legalize sports betting. The reason all of their attempts have failed is because federal law prevents states from allowing sports betting under the Professional and Amateur Sports Protection Act, the Wire Act, the Illegal Gambling Business Act and most recently, the Unlawful Internet Gambling Enforcement Act. A new federal bill, if passed, would remove federal bans on certain gambling and allow the states to regulate them as they please, thus effectively legalizing sports betting for New Jersey and others if they so choose. An online source breaks down the Gaming Accountability and Modernization Enhancement Act (GAME Act):

The US Congress may consider a gambling bill that would annul a *federal gambling ban*. This, on the other hand, would allow the country to make any form of gambling legal and regulate it. 

[I]f the GAME Act is enacted, it would annul the 1992 federal law and would allow every state to separately add sports betting and online gaming to the gambling operations that are legal there. As explained above, *customer protection rules*, as well as rules about *taxation and regulations* are also implemented in the proposed piece of legislation.

Stakeholders are also allowed to give their feedback for the GAME Act. As it has already became clear, the American Gaming Association backed the legal expansion of sports betting operations. Other organizations, such as the National Collegiate Athletic Association (NCAA) do not support the bill. 

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March Madness Brings Illegal Gambling and Hardships for Addicted Gamblers

Casino Watch Focus has reported on the ongoing problems that come with the NCAA March Madness tournament each year. Millions is lost to employers through a decline in work place productivity and people continue to gamble away money at unprecedented rates. Most of this gambling is illegal and this year the trend continues. ESPN provides some analysis: 

Americans are expected to complete 70 million NCAA tournament brackets this year, risking on average $29 per bracket and contributing to the $10.4 billion that will be bet overall on March Madness, according to estimates released Monday by the American Gaming Association.

The $10.4 billion expected to be bet on the tournament includes popular office pools and is up 13 percent from last year’s tournament, the AGA says. Only a small fraction of the money bet on the tournament, around 3 percent, is believed to be wagered legally in the United States. The bulk of the remaining $10.1 billion is placed with offshore sportsbooks and local bookmakers, according to the AGA, which represents the U.S. casino industry.

The NCAA remains steadfast on its objection to gambling on the Tournament. They not only understand the hardships it places on addicted gamblers that cant control the shear volume of risk and loss the can suffer, but they also understand the impact to the integrity of the games at play. ESPN continues:

While gambling on the tournament grows, the NCAA remains opposed to all forms of sports betting — legal and otherwise — and believes it has the potential to undermine the integrity of the games and negatively impact the welfare of student-athletes.

 The legality of such gambling continues to be a prominent issue this time of year as many people view office pools as harmless fun. Unfortunately, its anything but and its almost always illegal gambling. ESPN explains:

“Generally, if the office pool charges a fee for entering the pool and awards prizes to the winner(s), then there is a serious question as to its legality. Some states exempt small pools from their gambling laws and regulations,” said Washington, D.C.-based attorney Steven Eichorn of Ifrah Law.

Sports betting is currently legal in only a handful of states, with Nevada the only state permitted to offer single-game wagering, the most popular form. The Nevada Gaming Control Board does not track the amount bet on the NCAA tournament separately, and combines the NBA and college basketball into one “basketball” category on its monthly revenue reports. The spike in action from March Madness is easy to see, though.

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Congress Introduces Federal Sports Gambling Bills

Casino Watch Focus has reported on the ongoing attempts at legalizing sports betting, with the most common attempts coming from New Jersey. They have attempted, and failed, countless times to get sports betting legalized in New Jersey. Right now the law only allow select destinations like Las Vegas. There most recent attempt was stopped in court and they have appealed that decision to the Supreme Court. The decision to pick up the case or deny it and allow the lower court ruling to stand is being delayed. The Kansas City Star explains: 

Nevada is the only state allowed to offer wagering on single games. Delaware, Montana and Oregon were exempted from the 1992 federal ban and are permitted to offer limited multi-game parlay pools. Congress gave New Jersey a one-time opportunity to become the fifth state before the ban was enacted, but the state failed to pass a sports betting law in the required time window. Republican Gov. Chris Christie has championed New Jersey’s effort in an attempt to use sports gambling revenues to bolster the sagging fortunes of the state’s casino and horse racing industries. The case has a lengthy legal history.

Supporters of legalized sports gambling in New Jersey and several other states were dealt a no-decision of sorts Tuesday when the U.S. Supreme Court delayed a ruling on whether it will take up the states’ challenge to a federal ban. The court invited the solicitor general to file a brief on behalf of the government, which means a decision could take several more months.

As that case sits, New Jersey has decided to not leave the issue to chance and is instead looking to change the federal law that is preventing each of their attempts to legalize sports betting to become law. Two New Jersey Congressmen have introduced legislation to legalize sports betting on a federal level. An online source explains:

Congressmen Frank LoBiondo and Frank Pallone, Jr., both of New Jersey, said last week that their House bills “would ensure a path forward for New Jersey and other states seeking to legalize sports betting, regardless of whether the Supreme Court hears New Jersey’s case.’

Pallone is sponsoring the “NJ BET Act,” which would exempt New Jersey from current federal law. LoBiondo’s bill is called the “Sports Gaming Opportunity Act,” and it would allow all states to enact laws providing for sports betting during a four-year window. Both men in 2015 introduced similar legislation that didn’t go anywhere on Capitol Hill.

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