Sports betting coming to N.J. after U.S. Supreme Court kills federal ban

WASHINGTON -- The state won its long battle for N.J. sports betting Monday when the U.S. Supreme Court threw out a federal ban that has lasted for more than a quarter century.

"The legalization of sports gambling requires an important policy choice, but the choice is not ours to make," Justice Samuel Alito, a New Jersey native, said in the opinion of the court. "Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own."

Gov. Phil Murphy, who replaced Gov. Chris Christie as the lead plaintiff when he became governor in January, welcomed the ruling.

"I am thrilled to see the Supreme Court finally side with New Jersey and strike down the arbitrary ban on sports betting imposed by Congress decades ago," Murphy said. "I look forward to working with the Legislature to enact a law authorizing and regulating sports betting in the very near future."

State Senate President Stephen Sweeney said the state Legislature would move to enact the laws necessary to quickly bring sports betting to fruition. Sweeney told NJ Advance Media the hope is to have regulations in place by the end of June.

"We can now seize the opportunity with a new sector of gaming that will help create jobs, generate economic growth and be an important boost to the casino industry and horse racing," Sweeney, D-Gloucester, said.

Indeed, Sweeney and state Sens. Jeff Van Drew, D-Cape May, and Vin Gopal, D-Monmouth, introduced legislation Monday to allow sports betting at casinos and racetracks under Casino Control Commission and Division of Gaming Enforcement regulations. Bettors would have to be 21 years old and betting on any high school or collegiate sporting event in New Jersey. or any event involving a New Jersey college, would be banned.

Joe Asher, chief executive of William Hill US, said the company was "going to get ready to open for business at Monmouth Park as soon as responsibly possible." The track said it could be ready to offer sports betting within two weeks.

State officials have sought since 2011 to legalize sports betting, seeing it as a way to improve the fortunes of Atlantic City, which had seen several casinos close, as well as the state's struggling race tracks. The state has spent nearly $9 million in taxpayer money on the battle.

"This will attract a younger generation of folks to go to Atlantic City and stay there," said former state Sen. Raymond Lesniak, D-Union, who led the fight in Trenton to legalize supports betting.

He called the decision "a savior for casinos and racetracks."

"Not just for hours to play the slots, but to watch the sporting events," Lesniak said. "Throughout the year. They'll dine there. They'll rent rooms there. Shop there. The same thing for the racetracks. It will bring activity and revenue to racetracks."

U.S. Rep. Frank LoBiondo, R-2nd Dist., whose district includes Atlantic City, called the ruling "excellent news." He said the decision "will have a significant and positive impact on South Jersey, bringing tourism and tax revenue to the state and reinvigorating Atlantic City."

The state's attempt to enact sports betting was strongly opposed by President Donald Trump, as well as by the National Collegiate Athletic Association and the four major professional sports leagues, even as some of the leagues partnered with daily fantasy sports operations.

National Football League spokesman Brian McCarthy said the league would ask Congress to pass a federal sports betting law.

"The NFL's long-standing and unwavering commitment to protecting the integrity of our game remains absolute," McCarthy said. "Congress has long recognized the potential harms posed by sports betting to the integrity of sporting contests and the public confidence in these events.

"Given that history, we intend to call on Congress again, this time to enact a core regulatory framework for legalized sports betting," McCarthy said. "We also will work closely with our clubs to ensure that any state efforts that move forward in the meantime protect our fans and the integrity of our game."

The state, appealing a decision by the Third Circuit U.S. Court of Appeals, had argued that 1992 Professional and Amateur Sports Protection Act, designed to ban sports betting in 46 states, was an unconstitutional attempt by Washington to tell the states what to do.

Alito agreed with the state, saying the law had the effect of putting state legislatures "under the direct control of Congress."

"It is as if federal officers were installed in state legislative chambers and were armed with the authority to stop legislators from voting on any offending proposals," he wrote. "A more direct affront to state sovereignty is not easy to imagine."

Under the law, only Nevada, Delaware, Montana and Oregon could offer sports betting. New Jersey had been given a year to legalize such wagering under the law but failed to do so.

The Third Circuit had thrown out a 2014 state law attempting to get around the federal prohibition by allowing New Jersey's casinos and racetracks to offer betting without the state approving or regulating the activity.

The Supreme Court then agreed to take the case, giving supporters of sports betting hope that their long quest neared success.

Alito's opinion was joined by Chief Justice John Roberts Jr. and Justices Neil Gorsuch, Elena Kagen, Anthony Kennedy and Clarence Thomas. Thomas also filed a concurring opinion.

Justices Ruth Bader Ginsberg and Sonia Sotomayor dissented.

"Congress permissibly exercised its authority to regulate commerce by instructing States and private parties to refrain from operating sports-gambling schemes," they wrote. "On no rational ground can it be concluded that Congress would have preferred no statute at all if it could not prohibit States from authorizing or licensing such schemes."

Justice Stephen Breyer joined the opinion of the court in part and the dissent in part.

U.S. Rep. Frank Pallone Jr., D-6th Dist., who has introduced legislation to allow sports betting, called the decision "a win for New Jersey and the rest of the country."

And Geoff Freeman, president and chief executive of the American Gaming Association, the trade group for the casino industry, said the ruling was "a victory for millions of Americans who want to bet on sports in a safe and regulated manner.

Of the estimated $150 billion bet on sports annually, all but $4.5 billion is wagered illegally, Freeman said.

"It's now possible for states and sovereign tribal nations to create a sports betting market that will protect consumers, preserve the integrity of the games, empower law enforcement to fight illegal gambling, and generate new revenue for states, tribes, sporting bodies, broadcasters and many others," Freeman said.

The cases are Murphy et al v. NCAA et al 16-476; and New Jersey Thoroughbred Horsemen's Association v. NCAA et al 16-477.

Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01.

Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him on Twitter @JDSalant or on Facebook. Find NJ.com Politics on Facebook.

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.