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Court lifts N.J. hopes for sports wagers

The U.S. Court of Appeals for the Third Circuit in Philadelphia breathed new life Wednesday into efforts by perennially strapped New Jersey to institute legalized sports betting.

A football fan places his bets in the sports book at Harrah’s Las Vegas Resort Hotel. New Jersey is hoping to win approval for sports betting, now limited to four other states. (SUZETTE PARMLEY/Inquirer Staff)
A football fan places his bets in the sports book at Harrah’s Las Vegas Resort Hotel. New Jersey is hoping to win approval for sports betting, now limited to four other states. (SUZETTE PARMLEY/Inquirer Staff)Read more

The U.S. Court of Appeals for the Third Circuit in Philadelphia breathed new life Wednesday into efforts by perennially strapped New Jersey to institute legalized sports betting.

The court, in a one-paragraph order written by Judge Marjorie Rendell, said it had agreed to rehear an appeal in a lawsuit over the betting program, following an Aug. 25 decision barring New Jersey from instituting its plan.

A three-judge panel handed down the August decision, which also was written by Rendell. The full court will now rehear the case, and the August decision has been vacated. New Jersey had been sued by the National Collegiate Athletic Association, Major League Baseball, and other professional sports leagues seeking to overturn the plan.

The opinion was greeted with jubilation from New Jersey officials, who have hoped for a boost in casino jobs from the plan and have argued that earlier decisions by the Third Circuit to block the plan have thwarted the will of New Jersey voters, who approved sports betting in a referendum in 2011.

"Today's ruling is a huge win in our fight to bring legal sports betting to New Jersey," said New Jersey Senate President Stephen Sweeney (D., Gloucester). "It will give us a fair chance to make our case before the entire court. We continue to believe that New Jersey has the right to allow sports betting and that our lawsuit is fully justified."

Sweeney is a named defendant in the lawsuit by the sports leagues and the NCAA, along with Gov. Christie.

New Jersey voters amended the state constitution in 2011 to permit sports betting at struggling casinos and racetracks, while barring wagers on New Jersey college teams or on any collegiate event occurring in the state.

In its Aug. 25 opinion, the appeals panel said that by permitting sports betting, New Jersey had violated the Professional and Amateur Sports Protection Act of 1992, a federal law that limited sports betting to Nevada, Montana, Delaware, and Oregon. Under the law, New Jersey had a narrow window in 1993 to enact a sports betting plan, but it failed to do so.

New Jersey officials have long stated that the sports betting plan would bolster the state's flagging casino industry.

As much as $225 million a year could be generated for casinos and racetracks, proponents have said.

In its August opinion, the Third Circuit acknowledged New Jersey's need for revenue, but said that federal gambling statutes prohibit sports betting in New Jersey. The court suggested that the state might yet win approval of the program, but that it would need an act of Congress.

The case turns on technical legal arguments over how to interpret the New Jersey law. In its first attempt to authorize sports betting in 2011, the Legislature repealed laws banning sports betting and set up a regulatory apparatus to oversee the program. That law was struck down, and the Legislature enacted a second law repealing the ban, without the regulatory measures. The state argued that the absence of a prohibition did not amount to approval of sports betting.

While Sweeney hailed Wednesday's order, it is far from clear that New Jersey will do any better with the full appeals court hearing the case.

cmondics@phillynews.com

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@cmondics