TRENTON -- Legalized sports betting in Atlantic City would be a financial windfall for New Jersey and allow casinos to compete with flashier Las Vegas counterparts, industry executives testified Monday.
But detractors of a plan to allow the wagering say it would be a corrupting influence on sports such as baseball, football, basketball and hockey.
The two views clashed Monday as the Assembly Tourism and Gaming Committee held hearings on whether to move ahead with plans to legalize sports books in New Jersey casinos.
"In short, legalized sports gambling would tarnish the image of the game," said Jon Moyer, special counsel to the National Football League. "Public confidence is the cornerstone of our game."
Moyer said betting on the games would create suspicion over unexpected events and make fans believe "the fix is in."
But some lawmakers see the matter differently.
By bringing sports betting to New Jersey's dozen casinos, extra revenue from the 8 percent casino tax could be pumped into health care for seniors and charity hospital care, supporters said.
Casino executives said the Pharmaceuticals for the Aged and Disabled program sees $350 million annually from casino revenue.
As a bonus, supporters added, the legalization would fend off potential challenges from states that have lifted bans on wagering on games including Nevada, Pennsylvania, Oregon and Montana.
"We need to pursue every option possible to make this a reality in New Jersey," said Assemblyman Jeff Van Drew, D-Cape May, who pledged citizens will have the final say in a public referendum.
Joe Lupo, vice president of operations at the Borgata Hotel & Casino, said sports wagering amounts to $80 billion to $300 billion in America with 1 to 3 percent conducted legally.
New Jersey's share of the casinos' $50 million profits would be at least $5 million to $8 million, he said.
"The fact of the matter is that sports betting already exists in New Jersey as it does in many other states. New Jersey just isn't benefiting from it," said Lupo, who was head of sports wagering at the Stardust Casino in Las Vegas, the epicenter of sports bookmaking.
"Atlantic City casinos would be able to provide the type of environment experienced in destination resorts such as Las Vegas."
Is it worth it?
When voters OK'd legalized table gambling in Atlantic City, they constitutionally tied the money generated to senior health care programs.
Since that 1978 vote, two previous attempts at allowing sports books in the state have died.
Typically opposition has come from professional sports leagues and those who maintain gambling is morally wrong.
"All of the games New Jersey made legal were created as gambling vehicles. They exist for no other reason and revolve around pure chance," Moyer said. "What we're talking about here if this comes to fruition is the only form of gambling that would turn on a human endeavor."
One Republican said questions remain whether it will be worth overlooking moral objections.
"I think in the past there has been a concern about it for that reason," said Senate Minority Leader Leonard Lance, R-Hunterdon/Warren, a member of the Senate budget panel. "I want to review it very closely."
Lupo, the Borgata executive, said major sporting events prove a huge revenue boost for Las Vegas as bettors and sports fans flood the city during Super Bowl season.
"In Las Vegas, during times such as Super Bowls and other events, occupation rates are full. People are not coming just to see the events. And Atlantic City will see that as well," Lupo said.
Casting further doubt on the current push is a federal interstate commerce law allowing sports betting in just four states.
Van Drew said this law could likely be challenged because the bets would be placed in person at casino windows, exempting them from interstate commerce regulations.
"This is not just an Atlantic City issue, this is a New Jersey issue and a senior issue," he said. "Regardless of your opinion on the subject, I believe anything would need to go before voters."
While remaining cagey about his support for the proposal, Gov. James E. McGreevey has been receptive to the idea.
"It is an intriguing idea that deserves some scrutiny," McGreevey spokesman Micah Rasmussen said. "We look forward to Assemblyman Van Drew's findings in the Assembly committee."
No legislation or timeframe has yet been introduced for bringing sports betting to New Jersey.
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