Acting US Solicitor General Jeffrey Wall advised the Supreme Court to refuse action on New Jersey’s sports betting case. The Solicitor General’s recommendation may put an end to the state’s long-time effort to add betting options to its racetracks and Atlantic City casinos in a bid to revitalize its struggling gambling industry.
According to people with knowledge of US legal matters, the Supreme Court follows the advice of the Solicitor General in 80% of the cases.
Sports betting is illegal in the US, with Nevada and several other states being the only exceptions to the federal rule. The nationwide ban was implemented with the introduction of the Professional and Amateur Sports Protection Act (PASPA) back in 1992. Under the act, the provision of sports betting services is illegal in 46 states, New Jersey included.
The state launched its battle to lift the ban back in 2011, when a statewide referendum approved the measure and Gov. Chris Christie signed a piece of legislation on the matter. Some of the major US sports leagues brought both Gov. Christie and other proponents of the effort to court, arguing that the addition of sports betting at New Jersey’s gambling venues would harm the integrity of both professional and amateur sports.
Judges ruled in favor of the sports leagues on several occasions, until the cases reached the Supreme Court. In January 2017, the highest US federal court requested a brief from the Solicitor General before making any decision on the matter. Here it is important to note that the Supreme Court could have rejected the cases back then, like it did with more than a hundred other lawsuits.
Judges’ decision to first hear the Solicitor General before taking action on New Jersey’s sports betting legalization effort was then seen as a good sign for the case’s future. The Supreme Court is expected to announce its decision on whether it would keep the case alive by the end of June. And if it decides to intervene in the legal battle between the state and the US sports leagues, it is still unclear how long it will need to make a final decision on whether New Jersey should be allowed to legalize sports betting.
A Possible Scenario
If the Solicitor General’s recommendation strikes a chord with the Supreme Court, New Jersey will have a particularly drastic, but somewhat effective option before itself. It will be able to repeal all existing state laws prohibiting sports betting. However, this will mean that practically everyone will be able to open a sports betting operation, no matter where in the state. And this will make New Jersey’s betting industry impossible to monitor and regulate.
On the other hand, this may evoke a reaction in sports leagues and other influential opponents and may eventually result in amendments in the existing sports betting laws. Yet, it is difficult to predict whether the amendments will be favorable enough to New Jersey.
