NJ sports betting and exchange plans approved

[dave nz]

New Jersey’s Senate and Assembly have approved a Democrat-driven package of gaming and sports betting bills aimed at boosting the Garden State’s revenues, reviving its declining horse racing industry and increasing jobs.

Politicians in Trenton yesterday voted in favour of establishing the country’s first online betting exchange, allowing sports betting in the state’s casinos and racetracks and authorising out-of-state residents to bet on horseracing online – the penultimate step before each one is sent for final approval by New Jersey Republican Governor Chris Christie. In July Christie announced a plan to overhaul the state’s flagging Atlantic City casinos and horse racing industry. In November, Atlantic City's 11 casinos reported a 12.5% fall in revenue compared to 2009.

The sports betting bill needed 41 votes for approval, however the Assembly overwhelmingly agreed 54-17-4 to add a constitutional amendment on the November 2011 ballot to allow wagering on sports events at Atlantic City casinos and the state's four current and former racetracks.

Following the Assembly vote a relieved Lesniak, sponsor of the Senate version of the sports betting bill, said “it doesn't get any better than that”. He added that the bill’s passage would generate more than US$1bn in gross revenues for the state’s casinos, $120m for the treasury, and revive tourism in Atlantic City and other areas of the state, such as Monmouth County, the Meadowlands and Cherry Hill.

As a proposed amendment, the sports betting bill will be put to a public vote for residents of New Jersey and not sent to the Governor. This will be decided by a single majority vote next year.

In 1992 a US federal ban on sports betting was imposed allowing only a handful of states – Nevada, Delaware, Oregon and Montana – to participate. In March 2009 Lesniak, Interactive Media Entertainment & Gaming Association (iMEGA) and two groups representing horse racing interests in New Jersey, filed a lawsuit against the US Justice Department arguing that the Professional and Amateur Sports Protection Act (PASPA) is unconstitutional, suggesting it discriminates against the people of New Jersey by allowing four states exempted under the law to reap tax revenue from sports betting while the Garden State cannot.

The lawsuit is pending in federal district court and a decision is likely in the New Year. Lesniak must win his lawsuit to overturn the ban, but he said that yesterday's constitutional amendment would “send a message to the court and Congress that the people of New Jersey want the same right to bet on sports enjoyed by Las Vegas,” the Philadelphia Inquirer reported.

"If we're to remain the East Coast's premier gaming destination, we need to make sure our racetracks and casinos are offering the best attractions, and that means adding sports gaming,” added Assemblyman Ralph Caputo (D., Essex), referring to New Jersey missing the deadline to grandfather in sports betting within one year of the 1992 federal law's passage.

Yesterday eGaming Review broke the news that Senator Raymond Lesniak’s sponsored online gambling bill was in the process of being re-examined by the state’s Assembly and Senate’s Appropriation Committees due to a last minute tax change to reduce the proposed 5% racing levy after five years of the bill being in place. It will go before the full Assembly on 6 January.

A source close to the matter told eGaming Review that there is “zero chance” of the bill being derailed at this stage in the process. “Anytime there are changes to legislature that involve taxation the rules are that it has to go in front of Appropriation Committees in both houses.

“There are no changes to the bill's prospects. It is still expected to be overwhelmingly approved by both the Senate and Assembly. Unanimous passage by the gaming committees in both houses is ample proof of that," the source added.

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As a proposed amendment, the sports betting bill will be put to a public vote for residents of New Jersey and not sent to the Governor. This will be decided by a single majority vote next year.

[cuse_man]