The US Third Circuit Court of Appeals panel dealt a heavy blow to the New Jersey gaming industry Tuesday, upholding an earlier court ruling that prohibited sports betting in the state.
“PASPA, by its terms, prohibits states from authorizing by law sports gambling,” the panel declared in a 2-1 ruling. “(New Jersey’s) 2014 Law does exactly that … We conclude that the 2014 Law violates PASPA because it authorizes by law sports gambling.”
New Jersey had hoped to introduce legalized sports betting to its languishing racetracks and casinos in time for this year’s NFL season, but Tuesday’s ruling, which upheld a 2013 Third Circuit panel decision, leaves prospects bleak in Atlantic City and across the country.
From Above The Law Redline:
Instead of joining the rest of the civilized world (and Nevada) in regulating and taxing sports betting, the Third Circuit Court of Appeals just squashed any hope of legal sports betting in this country absent a complete federal repeal of the Professional and Amateur Sports Protection Act (“PASPA”). …
New Jersey’s Hail Mary now is to appeal for a hearing in front of the entire Third Circuit, or en banc. The state has 45 days to do so. However, even obtaining such a hearing is rare.
According to one of the leading gaming law experts in the nation, Daniel Wallach, all federal circuit courts heard only 45 cases en banc out of more than 30,914 cases terminated on their merits since 2010. The fact that there have now been two split decisions might help New Jersey obtain an en banc hearing, but I suspect the outcome will remain the same.
Wallach also told Sports Illustrated that it wasn’t likely Congress would take on the repeal of PASPA in the foreseeable future.
“There’s no urgency since New Jersey losing means states can’t legalize sports betting,” Wallach said.