[h=1]Sports betting bills top $8 million, AC casinos waiting on Supreme Court ruling[/h]
The state of New Jersey has pushed all its chips to the middle of the table, betting big that a legal battle against a federal ban on sports wagering will pay off.
According to records from the state Division of Law, the Senate Majority Office and the Sports & Exposition Authority, New Jersey has been billed just more than $8.7 million fighting a 1992 federal law, called the Professional and Amateur Sports Protection Act, to permit wagering on sports at New Jersey’s casinos and racetracks.
If the federal sports betting ban is struck down, New Jersey is expected to generate more than $173 million in tax revenue and see the creation of more than 3,633 jobs, according to a report from Oxford Economics.
David Schwartz, director of the Center for Gaming Research at the University of Nevada-Las Vegas, said that sports betting accounts for roughly 2 percent of the total gaming revenue in Nevada. He said that while sports gambling would add to Atlantic City casino’s offerings, he cautioned against betting on it creating a financial windfall for the resort.
The law firm of Gibson Dunn & Crutcher has billed the state just more than $7 million between 2012 and 2017, which the records custodian for the Division of Law said is paid for by the Division of Gaming Enforcement and the Racing Commission with fees collected from casinos and horse racetracks.
A second firm, Gibbons P.C., has billed the state Legislature slightly more than $1.5 million for legal representation from 2012 through Jan. 31. Gibbons has also represented the sports authority, for which a spokesperson confirmed legal billing of $77,000.
In 2011, New Jersey voters overwhelmingly approved creating a constitutional amendment to allow sports betting. The following year, the state Legislature passed the Sports Wagering Act. Former Gov. Chris Christie signed off on legislation in 2012 and 2014 to enact the amendment.
The law was challenged by five sports leagues — NBA, NCAA, NFL, NHL and MLB — and the case now rests with the U.S. Supreme Court, which heard oral arguments in December. The high court is expected to issue a decision by the end of June or early July.
In Atlantic City, the seven casinos and the two that will be opening this summer, are in a holding pattern awaiting the court’s ruling.
While several of the casinos did not want to comment on their potential plans should the Supreme Court side with New Jersey, those that did said they were prepared to deliver Las Vegas-style sports betting in Atlantic City.
“Ocean Resort Casino intends to offer a ‘best in class’ sports-betting experience in a remarkable high energy and highly engaging venue in partnership with what is widely considered to be the top names in the global sports betting space,” said CEO Frank Leone. “Ocean Resort Casino will be positioned to immediately offer both on-property and online sports betting pending licensing and regulatory approval.”
Caesars Entertainment Corporation operates three properties in New Jersey — Bally’s Atlantic City, Caesars Atlantic City and Harrah’s Resort Atlantic City — and 35 casinos across the United States.
“We believe PASPA should be repealed by the Supreme Court although no one knows how the court will rule, or what regulatory landscape will emerge as a result,” said Noel Stevenson, regional public relations director for Caesars Entertainment. “Our response will be based on the opportunity and rules which result if the law changes.”
In Trenton, lawmakers are also preparing for a favorable ruling.
Three Democratic legislators have proposed a bill that would regulate and tax wagering on professional and collegiate sports. Under the bill, sports wagering revenue would be subject to an 8 percent tax and online sports betting would be subject to a 12.5 percent tax.
Casinos and racetracks would be subject to an annual sports betting “integrity fee” which would be equal to the lesser of $7.5 million or 2.5 percent of their sports wagering revenue. One of the bill’s sponsors, Assemblyman John Burzichelli, D-Cumberland, Gloucester, Salem, said he does not expect that clause to be included in the final legislation. Under current federal law, the only states where sports betting is legal are Nevada, Delaware, Montana and Oregon. Nevada is the only state to allow single-game wagering.
According to estimates from the American Gaming Association, more than $150 billion is wagered annually by Americans on illegal sports betting.
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David Danzis, Press of Atlantic City · <time class="entry-time" style="background-color: transparent; color: rgb(51, 51, 51);" itemprop="datePublished" datetime="2018-05-05T12:14:39-04:00">May 5, 2018
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The state of New Jersey has pushed all its chips to the middle of the table, betting big that a legal battle against a federal ban on sports wagering will pay off.
According to records from the state Division of Law, the Senate Majority Office and the Sports & Exposition Authority, New Jersey has been billed just more than $8.7 million fighting a 1992 federal law, called the Professional and Amateur Sports Protection Act, to permit wagering on sports at New Jersey’s casinos and racetracks.
If the federal sports betting ban is struck down, New Jersey is expected to generate more than $173 million in tax revenue and see the creation of more than 3,633 jobs, according to a report from Oxford Economics.
David Schwartz, director of the Center for Gaming Research at the University of Nevada-Las Vegas, said that sports betting accounts for roughly 2 percent of the total gaming revenue in Nevada. He said that while sports gambling would add to Atlantic City casino’s offerings, he cautioned against betting on it creating a financial windfall for the resort.
The law firm of Gibson Dunn & Crutcher has billed the state just more than $7 million between 2012 and 2017, which the records custodian for the Division of Law said is paid for by the Division of Gaming Enforcement and the Racing Commission with fees collected from casinos and horse racetracks.
A second firm, Gibbons P.C., has billed the state Legislature slightly more than $1.5 million for legal representation from 2012 through Jan. 31. Gibbons has also represented the sports authority, for which a spokesperson confirmed legal billing of $77,000.
In 2011, New Jersey voters overwhelmingly approved creating a constitutional amendment to allow sports betting. The following year, the state Legislature passed the Sports Wagering Act. Former Gov. Chris Christie signed off on legislation in 2012 and 2014 to enact the amendment.
The law was challenged by five sports leagues — NBA, NCAA, NFL, NHL and MLB — and the case now rests with the U.S. Supreme Court, which heard oral arguments in December. The high court is expected to issue a decision by the end of June or early July.
In Atlantic City, the seven casinos and the two that will be opening this summer, are in a holding pattern awaiting the court’s ruling.
While several of the casinos did not want to comment on their potential plans should the Supreme Court side with New Jersey, those that did said they were prepared to deliver Las Vegas-style sports betting in Atlantic City.
“Ocean Resort Casino intends to offer a ‘best in class’ sports-betting experience in a remarkable high energy and highly engaging venue in partnership with what is widely considered to be the top names in the global sports betting space,” said CEO Frank Leone. “Ocean Resort Casino will be positioned to immediately offer both on-property and online sports betting pending licensing and regulatory approval.”
Caesars Entertainment Corporation operates three properties in New Jersey — Bally’s Atlantic City, Caesars Atlantic City and Harrah’s Resort Atlantic City — and 35 casinos across the United States.
“We believe PASPA should be repealed by the Supreme Court although no one knows how the court will rule, or what regulatory landscape will emerge as a result,” said Noel Stevenson, regional public relations director for Caesars Entertainment. “Our response will be based on the opportunity and rules which result if the law changes.”
In Trenton, lawmakers are also preparing for a favorable ruling.
Three Democratic legislators have proposed a bill that would regulate and tax wagering on professional and collegiate sports. Under the bill, sports wagering revenue would be subject to an 8 percent tax and online sports betting would be subject to a 12.5 percent tax.
Casinos and racetracks would be subject to an annual sports betting “integrity fee” which would be equal to the lesser of $7.5 million or 2.5 percent of their sports wagering revenue. One of the bill’s sponsors, Assemblyman John Burzichelli, D-Cumberland, Gloucester, Salem, said he does not expect that clause to be included in the final legislation. Under current federal law, the only states where sports betting is legal are Nevada, Delaware, Montana and Oregon. Nevada is the only state to allow single-game wagering.
According to estimates from the American Gaming Association, more than $150 billion is wagered annually by Americans on illegal sports betting.
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