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Pro Leagues, NCAA Make Play To Stop NJ Sports Betting Law
By Paul DeBenedetto
Law360, New York (October 20, 2014, 7:36 PM ET) -- The four major U.S. sports leagues and the NCAA
on Monday sought an injunction in federal court against New Jersey’s new sports gambling law after
Gov. Chris Christie on Friday signed a bill legalizing the practice at casinos and racetracks.
The complaint alleged that by signing S2460 into law, Christie violated the federal Professional and
Amateur Sports Protection Act, which only allows sports betting in Nevada, Delaware, Montana and
Oregon.
The new law is just the latest example of the state flouting federal regulations, according to the
complaint filed on behalf of Major League Baseball, the National Basketball Association, the National
Football League, the National Hockey League and the National Collegiate Athletic Association.
“For years, New Jersey has been attempting to devise a way to get around these unambiguous
prohibitions and authorize sports gambling in Atlantic City casinos and horse racetracks throughout the
state,” the complaint said.
The fight for legal sports gambling in the state began in 2012 with the New Jersey Sports Wagering Law.
At that time, the leagues successfully challenged the law in New Jersey federal court, and on Feb. 28,
2013, the court enjoined the state from enforcing it. The ruling was subsequently upheld in the Third
Circuit, and Christie was denied a writ of certiorari by the U.S. Supreme Court on June 23.
Days later, the state legislature approved a new bill with the intent of legalizing sports betting in the
state. Christie vetoed that bill, urging respect for the Third Circuit’s ruling.
But Christie also said at the time that the state would “examine the Third Circuit's opinion carefully” in
order to find a new approach. The new law was introduced in part to support acting Attorney General
John J. Hoffman in seeking clarification from the Third Circuit on his September directive to allow sports
betting in casinos and racetracks. The NFL criticized that directive late last month.
The law passed Friday specifically contains language from the Third Circuit decision, in which the court
said it was "left up to each state to decide how much of a law enforcement priority it wants to make of
sports gambling, or what the exact contours of the prohibition will be."
By signing S2460 into law on Friday, Christie said the state has corrected flaws in the vetoed bill.
"As I've said all along, I am a strong proponent of legalized sports wagering in New Jersey," Christie said
in a Friday statement. "But given earlier decisions by federal courts, it was critical that we follow a
correct and appropriate path to curtail new court challenges and expensive litigation. I believe we have
found that path in this bipartisan legislative effort."
Monday’s complaint called Christie’s claims “dubious.”
“As the bill’s practical operation reveals, its sponsors concede, and the New Jersey Constitution
demands, the 2014 Sports Wagering Law is a blatant effort to authorize sports gambling at venues that
are licensed and regulated by the state,” the complaint said. “It therefore violates both PASPA and this
Court’s injunction[.]”
The governor’s office declined to comment on Monday.
Some places have already begun their preparations for sports betting in the state, anticipating a possible
New Jersey victory. State-owned Monmouth Park Racetrack, for example, has said they will begin sports
betting on Sunday.
Dennis Drazen, a spokesman for the racetrack, said he believes that will still be the case.
“We believe we’ve complied to the letter with what the Third Circuit Court of Appeals said that we can
do,” said Drazen. “We do not think that the leagues can make the required showing that would entitle
them to a preliminary injunction.”
The plaintiffs are represented by William J. O’Shaughnessy and Richard Hernandez of McCarter &
English LLP, Jeffrey A. Mishkin and Anthony J. Dreyer of Skadden Arps Slate Meagher & Flom LLP, and
Paul D. Clement and Erin E. Murphy of Bancroft PLLC.
Counsel information for the defendants was not immediately available.
The case is National Collegiate Athletic Association et al v. Christie et al., case number 3:14-cv-06450, in
the U.S. District Court for the District of New Jersey.
--Editing by Patricia K. Cole.
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