New Jersey filed an amicus brief with the United States’ Supreme Court, arguing that the current ban the federal government has imposed on single-game sports betting in the state is unconstitutional. According to New Jersey lawmakers, each state should be allowed to modify or at least, repeal its own laws that have to do with sports betting regulations.
The local legislators argued that such decisions are way above the legal authority of the Congress. The Supreme Court is expected to hear the case in the fall of 2017 and its ruling on the matter may have a dramatic constitutional effect not only on New Jersey’s laws but on a state-wide scale as well.
PASPA is to Blame
Following the enforcement of the Professional and Amateur Sports Protection Act (PASPA) in 1992, single-event sports betting was prohibited in all US states, the only exception being the state of Nevada. The biggest issue with the PASPA results from the fact all states that have outlawed single-game sports betting back in 1992 are forced to continue forbidding these practices for good.
The initial purpose of PASPA was to eradicate the risks of rigging games by eliminating the element of gambling from sports. While these intentions were indeed commendable, the actual results PASPA brought about were far from positive. The ban merely led to a boost in corruption and created a black market in single-game sports betting.
Sports betting experts have also taken a stance on the matter, commenting that the Congress is in the wrong in preventing states from decriminalizing the practice of making online bets on the outcomes of sports events. In their opinion, the Supreme Court is likely to rule in favor of New Jersey after the hearing of the case, allowing the state to introduce sports betting regulations within its borders.
New Jersey Has Attempted to Reform Sports Betting Laws in the Past
The state of New Jersey has been pushing for single-event sports betting regulations for years, but without much success. The first attempts to lift the ban were made back in 2011 when a non-binding referendum was held by the residents of the state of New Jersey. The vast majority of the locals voted in favor of allowing single-event sports betting within the borders of the state. New Jersey legislators then suggested the introduction of a regulatory regime but in vain.
A second attempt was made a year later, in 2012, when the state’s Governor Chris Christie passed a bill to allow bets on single-game sports events to be legally made within landbased casinos and racetracks, located in New Jersey. These efforts also proved to be futile and resulted in a lawsuit on behalf of the National Collegiate Athletic Association (NCAA) against the state of New Jersey. Various professional sports teams from the NBA, the NHL, the MLB, and the NFL have also opposed the idea of lifting the ban, with the argument that allowing sports bets on single games would destroy the integrity of the sports.
The amicus brief filed by New Jersey follows the passing of a bill that introduced Daily Fantasy Sports (DFS) regulations within the state. The new piece of legislation was signed by Governor Christie this past August. The changes now enable fans to create fantasy sports teams that are based on existing, flesh-and-flood sportsmen and wager on the results of these simulated events. As the DFS betting revenue will also be taxed at a rate of 10.5%, the state is expected to generate the additional amount of $6.6 million on an annual basis.
