(Editor's Note: This story was updated at 4:45 p.m. with comments from several New Jersey lawmakers.) After all but uniting on a backup plan to legalize sports betting — only to have the bill vetoed by Gov. Chris Christie — state lawmakers rejoiced Monday after the governor opened a new avenue to create the offering at New Jersey's casinos and racetracks.
Chief among them was state Sen. Raymond Lesniak (D-Union), one of Trenton’s top proponents for legalized sports books.
In a prepared statement Monday, Lesniak said: “This is what we’ve been working to achieve: to allow sports betting in New Jersey that is legally sanctioned and beneficial to the casinos, racetracks and the state’s economy. It comes at a key time for the casino industry in Atlantic City. Sports betting will help restore lost jobs and position New Jersey as a leader in a business with national and international appeal.
“It’s good that the governor reversed course,” Lesniak added. “After vetoing my legislation that would have achieved the same goal, the administration’s actions today will allow the state to take advantage of an important economic opportunity.”
After the state's unsuccessful bid to repeal the federal prohibition on sports betting, Christie on Monday issued a “combined statewide directive” from the Attorney General’s Office — essentially ordering law enforcement agencies to allow the practice at casinos and racetracks. In conjunction, he filed a motion filed in U.S. District Court, asking a judge “to clarify or modify his February 2013 injunction” that said the venues can still create sports pools, as long as state lawmakers repeal New Jersey’s own prohibitions on them — and as long as the state is not licensing or regulating sports betting.
The strategy centers on what is effectively a loophole in the 22-year-old federal Professional and Amateur Sports Protection Act — which the state sought to overturn in a court battle with the NCAA and the four major sports leagues — and the opinions from the ensuing federal court case.
The move was immediately applauded by Assembly Speaker Vincent Prieto (D-Secaucus).
"We've desperately needed innovative ideas to keep New Jersey's gaming industry competitive, not only at Atlantic City casinos, but at our racetracks," he said in a statement. "That's why the Assembly supported this move in June, and that's why I welcome it now. This is an opportunity to jump-start Atlantic City and the gaming industry and generate new revenue for our state. Those are all positives.
"New Jersey made a commitment to Atlantic City, but the shifting landscape amid the gaming industry means Atlantic City — and New Jersey — must evolve, too. We cannot sit idle while thousands of residents lose their jobs and a key revenue source — especially for our senior and disabled residents — fades."
Republicans, who overwhelmingly supported the bill that was vetoed last month, also praised Christie’s action.
“This directive paves the way for legalized sports betting in the state, which will be a boon to New Jersey,” state Sen. Jennifer Beck (R-Red Bank) said. “It will keep us competitive with other states while offering a significant new source of tax revenue. Sports betting will also offer a much-needed lifeline to our ailing casinos and horse racing industry. This bold move will have a long-term, positive impact upon our state.”
“This action is especially important to Monmouth County, the home of Monmouth Park,” said state Sen. Joseph Kyrillos (R-Middletown), who voted in favor of the original sports betting legislation. “This is good timing, as we work to create opportunities for the 8,000 people who are looking for new jobs due to Atlantic City’s struggles, and the reason I voted for sports betting in the first place. We look forward to continuing our work with the administration to resolve this issue.”
Christie’s action, which could amount to a lifeline for the state’s gaming and horse racing industry, comes after a series of losses in federal court going back to last year. And it comes on a day he was hosting a summit focused on how to revive Atlantic City amid a rash of casino closures.
Monday’s action came as something of a surprise. After the U.S. Supreme Court declined to hear the state’s case, lawmakers passed an alternative bill to legalize sports betting, only to see it vetoed by Christie last month. The bill sought to repeal the state laws that make it illegal for casinos and racetracks to take bets on athletic events — laws that were in place before the enactment of PASPA — effectively allowing the casinos and tracks to develop their own procedures for taking bets without a system of state regulation.
In his veto message, Christie called the bill a “novel attempt” that was “counter to our democratic traditions and inconsistent with the Constitutional values I have sworn to defend and protect.” He also said he believed “that the rule of law is sacrosanct, binding on all Americans,” despite disagreeing with the federal courts.
On Monday, though, Christie’s directive pointed to the state Sports Wagering Act signed into law in 2012 — following an overwhelming vote in a 2011 constitutional referendum — which decriminalized the operation of sports pools by casinos and racetracks. The law triggered the challenge by the sports leagues, resulting in a series of federal court rulings that prohibited New Jersey from licensing or authorizing sports wagering.
But Christie said the federal court makes it clear that it did “not read PASPA to prohibit New Jersey from repealing its ban on sports wagering.” The court reached the conclusion based on the arguments of the sports leagues, which said PASPA doesn’t order states to keep laws on their books or keep existing laws in effect.
As such, casinos and racetracks are protected from "criminal liability under New Jersey law so long as no wagering occurs on a college sport or athletic event that takes place in New Jersey or in which any New Jersey college team participates regardless of where the event takes place.”
The move was immediately applauded by Assembly Speaker Vincent Prieto (D-Secaucus).
"We've desperately needed innovative ideas to keep New Jersey's gaming industry competitive, not only at Atlantic City casinos, but at our racetracks," he said in a statement. "That's why the Assembly supported this move in June, and that's why I welcome it now. This is an opportunity to jump-start Atlantic City and the gaming industry and generate new revenue for our state. Those are all positives.
"New Jersey made a commitment to Atlantic City, but the shifting landscape amid the gaming industry means Atlantic City — and New Jersey — must evolve, too. We cannot sit idle while thousands of residents lose their jobs and a key revenue source — especially for our senior and disabled residents — fades."