America’s best hope for legal sports betting took its best shot in a federal courtroom on Wednesday, but it’s anybody’s guess what the outcome will be.
On Wednesday, New Jersey’s efforts to offer legal sports betting to state residents had its latest day in court. The US Third Circuit Court of Appeals heard testimony from the state’s legal reps, as well as those opposed to the plan, including the federal government, four major pro sports leagues and the NCAA.
To recap very briefly, New Jersey is attempting to overthrow the 1992 federal PASPA sports betting prohibition, which limits single-game wagering to Nevada, while allowing sports lotteries/pools in three other states. The courts rejected New Jersey’s first legislative effort because it violated PASPA’s ban on states specifically authorizing or regulating betting within their borders.
But a US Department of Justice attorney had suggested during the hearing that New Jersey could sidestep PASPA via a complete or partial repeal of its state-level betting bans. New Jersey responded by allowing Atlantic City casinos and state racetracks to self-regulate sports betting activity, but the courts ultimately rejected this move as a de facto authorization of betting.