The US Third Circuit of Appeals Is Seen as New Jersey’s Best Chance to Win a Decision
The fateful moment for the state of New Jersey in its two-and-a-half year struggle to legalize sports betting in the state comes on Tuesday. That is when lawyers representing Gov. Chris Christie’s Department of Justice argue before the 3rd U.S. Circuit Court of Appeals.
New Jersey’s DoJ has gone to court against lawyers from the four major American sports leagues and the NCAA four times since 2012. In all four cases, the sports associations have won the previous legal cases. The Third Circuit Court of Appeals looks as if it might be New Jersey’s last, best hope for success.
Fate of Monmouth Park’s Sportsbook
Both sides await a ruling on New Jersey’s attempts to allow Monmouth Park to allow sports betting on its premises. Prior to a late-October 2014 attempt by Monmouth Park to open a sportsbook alongside the UK gaming giant, William Hill Plc, the NFL, NBA, MLB, NHL, and NCAA jointly sued New Jersey and the North Jersey horsetrack.
The sports leagues argued, if Monmouth Park was allowed to operate a sportsbook, it would undermine public perceptions of the integrity of the leagues. New Jersey countered that the Las Vegas, bookmakers throughout Nevada, and gaming operators in three other US states allow sports betting. Under those circumstances, New Jersey should not be discriminated against, and its industry certainly would not undermine the sports, if $3-plus billion in Las Vegas sports bets every year did not.
Three-Year Legal Battle
Those are the same arguments which have been made for nearly 3 years, since the people of New Jersey voted to legalize sports gambling in the state and the associations sued the first time. In an earlier set of cases, New Jersey lost in U.S. District Court in Trenton (Judge Michael Shipp’s court), the Third Circuit Court of Appeals, and the U.S. Supreme Court. In the third case, the Supreme Court justices declined to hear New Jersey’s case, which amounted to a rebuff of their legal arguments.
What makes the case different this time is New Jersey repealed most of its laws regarding sports betting. When the Third Circuit Court ruled against New Jersey two years ago, its judges said the state could not legalize and regulate sports betting. The dissenting opinion suggested the state could repeal its laws and allow sports betting, simply by not enforcing provisions of the laws. That is exactly what the New Jersey state legislature did in October 2014, when it passed the bill repealing the earlier regulations. Gov. Chris Christie signed that bill into law the same week.
Judge Shipp’s Decision
When New Jersey’s lawyers went before Michael Shipp in November 2014, Judge Shipp did not agree with Chris Christie’s interpretation of the law. By saying the state would allow Monmouth Park to operate, while still prosecuting local bookies, said Judge Shipp, New Jersey’s government was tacictly legalizing the sportsbook. The mere act of favoring one bookmaker over another amounted to state regulations, said Michael Shipp. Tuesday in federal appeals court, we will see if the appellate judges agree.
On Tuesday, a three-judge panel from the Third Circuit Court of Appeals will hear the arguments on both sides, then judge on the case. If that case does not go New Jersey’s way, then the state can ask to have the entire matter re-heard by the entire 3rd Circuit bench. In the previous stop before the 3rd Circuit, a ruling went 3-1 against the state. If a second appeal does not work, then New Jersey’s only option would be to appeal the decision to the US Supreme Court again. Given the Supreme Court refused to hear the case last time, most experts are not optimistic the case would go any differently than before.
Third Circuit Court of Appeals
In other words, the case this week is the best chance Chris Christie and Steve Sweeney have of legalizing sports betting. If it does not happen this week, then it is not likely to happen.
In fact, politicians and residents alike are likely to be begin calling for an end to the litigation. The losing legal battles have cost the state millions of dollars. The Third Circuit Court of Appeals panel for Tuesday includes Donald Trump’s sister and Ed Rendell’s wife, so perhaps the gaming industry has caught a break with Democrats and gaming industry family members sitting in judgment.
