New Jersey Boosts Budget for Legal Sports Betting Battle
When New Jersey officials declared their intention to challenge the prohibition on legalizing sports betting, which most states are subject to, many were aware that the road ahead would be rough. Indeed, the state has endured a series of setbacks in the courts, sparking speculation that a petition to the U.S. Supreme Court won't yield a positive outcome. Yet, New Jersey's determination to make sports betting legal remains undaunted.
New Jersey has invested significant resources in this lawsuit. Based on data obtained by the Associated Press, the law firm of Gibson, Dunn & Crutcher has billed the state $2.8 million for their assistance since August 2012, when the four major U.S. sports leagues sought to stop Governor Chris Christie from issuing sports betting licenses. This amount does not account for the continued legal proceedings, so it's reasonable to expect a higher final cost.
Notably, this is the same firm Christie hired to investigate the George Washington Bridge lane-closing scandal that has plagued his administration. In both instances, public funds have been utilized for their services. Furthermore, there are additional expenses, such as the attorney's fees incurred by former Assembly Speaker Sheila Oliver and former New Jersey Senate President Steve Sweeney, that are not included in the aforementioned amount.
Long Betting Odds Provoke Uneasiness
The cost has caused unease among some, given the slim chances of victory for New Jersey. Although the amendment to the constitution permitting sports betting was passed with overwhelming approval, legally overturning the laws preventing nearly all states from licensing sports betting was always going to be a challenge.
"We have an $800 million budget deficit," said state Senator Shirley Turner (D-15th District), one of the few senators who voted against the amendment. "We don't have the funds to spend on something where the odds are slim. It could have been better employed to aid people within our state who truly need assistance."
The 1992 Law: A Central Focus of the Dispute
The struggle to legalize sports betting in New Jersey revolves around the Professional and Amateur Sports Protection Act of 1992. Intended to restrict most sports betting, with exceptions for horse racing, dog racing, and jai alai, this federal law limited such betting to Nevada and three other states with sports lotteries: Oregon, Delaware, and Montana.
At the time, the law included an exemption for states with an existing casino culture for at least ten years, allowing them to pass new laws permitting sports betting. In essence, this provision was crafted to enable New Jersey to opt out of the law. However, the state did not utilize the opportunity during the allotted year and therefore didn't secure an exclusion from the ban.
Legal analysts believe that the overturning of this law is more likely to occur through Congress than the courts. U.S. District Judge Michael Shipp voiced this idea when he contradicted New Jersey last year. This decision was upheld by the 3rd U.S. Circuit Court in a 2-1 vote. When the court denied a request to reconsider the matter before the entire 3rd Circuit, the Supreme Court became the last hope for a resolution.
The case might not be entirely desperate, though. When part of the Voting Rights Act was discarded by the Supreme Court earlier this year, one reason was its unequal treatment of various states. In her dissent, Justice Ruth Bader Ginsburg noted that other laws with similar ramifications, like the one concerning sports betting, might also be vulnerable to being overturned due to these grounds.
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