Report: Allowing sports gambling will help state with finances, organized crime.
TRENTON -- The State Commission of Investigation is urging lawmakers to consider legalized sports betting as a way to undermine organized crime in New Jersey.
The release of the commission's 155-page report, "The Changing Face of Organized Crime in New Jersey," coincides with Assembly Democrats' attempts to bring sports wagering to Atlantic City casinos.
In the document, released Monday, State Commission of Investigation members also urged a greater crackdown on illegal gambling kingpins
"As with the fight against illegal narcotics, the battle to control illegal gambling and to cut off the profit it generates for organized crime must occur within a multi-dimensional framework," said the report, which grew out of hearings last year on organized crime in New Jersey.
"The goal of this task force would be to determine, after extensive study, whether the cost of maintaining the status quo -- including widespread tax evasion, loan-sharking and extortion, and the diversion of law enforcement resources against such activities -- would be outweighed."
Under federal law, only four states -- Nevada, Oregon, Delaware and Montana -- are authorized to permit bookmaking.
"It goes to prove the point that I believe we are correct," said Assemblyman Jeff Van Drew, D-Cape May. Van Drew, the chairman of the Assembly Tourism and Gaming Committee, which is holding hearings into ways to circumvent the federal law against sports betting.
"With all the Internet gambling going on and the gaming occurring at the corner store, this certainly is a boost."
Supporters said lifting the prohibition on sports betting would generate additional money for senior prescription drug coverage and charity health care.
The Pharmaceuticals for the Aged and Disabled program alone receives $350 million annually from casinos, officials said.
Economically, legalization would mean up to $80 million annually in additional profits for New Jersey's casinos, also allowing them to compete with glitzier Las Vegas gambling houses that allow sports wagers.
"Now, it's going offshore," said Joe Lupo, vice president of operations at the Borgata Resort and Casino in Atlantic City, who testified earlier this week on the virtues of bookmaking. He estimated that just 1 percent to 3 percent of up to $300 billion wagered each year on sports is done legally. Legalizing gambling "helps protect the integrity of sports," Lupo said.
But others contend it would compromise the competitive nature of sports. It would also lure in people who otherwise would not place bets, detractors add.
"If you legalize sports betting, it becomes a part of your stated policy," said Jon Moyer, special counsel to the National Football League, which along with most other professional sporting leagues opposes lifting the betting prohibition.
The State Commission of Investigation report grew out of a series of public hearings held last year on the prevalence of organized crime in New Jersey. To deal with the problem, it calls for a mix of law enforcement and legislative means of fighting criminal activities.
Other topics covered in the document include various law enforcement and legislative ways to slow down or stop the Asian and Russian crime syndicates and prevent the smuggling of women for sex.
The report also addresses ways of dealing with drug trafficking by street gangs such as the infamous Bloods and Crips and requires more public reporting on gang activity.
http://www.nj.com
TRENTON -- The State Commission of Investigation is urging lawmakers to consider legalized sports betting as a way to undermine organized crime in New Jersey.
The release of the commission's 155-page report, "The Changing Face of Organized Crime in New Jersey," coincides with Assembly Democrats' attempts to bring sports wagering to Atlantic City casinos.
In the document, released Monday, State Commission of Investigation members also urged a greater crackdown on illegal gambling kingpins
"As with the fight against illegal narcotics, the battle to control illegal gambling and to cut off the profit it generates for organized crime must occur within a multi-dimensional framework," said the report, which grew out of hearings last year on organized crime in New Jersey.
"The goal of this task force would be to determine, after extensive study, whether the cost of maintaining the status quo -- including widespread tax evasion, loan-sharking and extortion, and the diversion of law enforcement resources against such activities -- would be outweighed."
Under federal law, only four states -- Nevada, Oregon, Delaware and Montana -- are authorized to permit bookmaking.
"It goes to prove the point that I believe we are correct," said Assemblyman Jeff Van Drew, D-Cape May. Van Drew, the chairman of the Assembly Tourism and Gaming Committee, which is holding hearings into ways to circumvent the federal law against sports betting.
"With all the Internet gambling going on and the gaming occurring at the corner store, this certainly is a boost."
Supporters said lifting the prohibition on sports betting would generate additional money for senior prescription drug coverage and charity health care.
The Pharmaceuticals for the Aged and Disabled program alone receives $350 million annually from casinos, officials said.
Economically, legalization would mean up to $80 million annually in additional profits for New Jersey's casinos, also allowing them to compete with glitzier Las Vegas gambling houses that allow sports wagers.
"Now, it's going offshore," said Joe Lupo, vice president of operations at the Borgata Resort and Casino in Atlantic City, who testified earlier this week on the virtues of bookmaking. He estimated that just 1 percent to 3 percent of up to $300 billion wagered each year on sports is done legally. Legalizing gambling "helps protect the integrity of sports," Lupo said.
But others contend it would compromise the competitive nature of sports. It would also lure in people who otherwise would not place bets, detractors add.
"If you legalize sports betting, it becomes a part of your stated policy," said Jon Moyer, special counsel to the National Football League, which along with most other professional sporting leagues opposes lifting the betting prohibition.
The State Commission of Investigation report grew out of a series of public hearings held last year on the prevalence of organized crime in New Jersey. To deal with the problem, it calls for a mix of law enforcement and legislative means of fighting criminal activities.
Other topics covered in the document include various law enforcement and legislative ways to slow down or stop the Asian and Russian crime syndicates and prevent the smuggling of women for sex.
The report also addresses ways of dealing with drug trafficking by street gangs such as the infamous Bloods and Crips and requires more public reporting on gang activity.
http://www.nj.com
