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Sports betting advances for A.C.
But federal law restricts wagers
Friday, February 24, 2006
BY DEBORAH HOWLETT
Star-Ledger Staff
A state Assembly committee yesterday approved a measure to legalize sports betting in Atlantic City casinos, even as the bill's sponsors conceded final passage is a long shot.
The bill would put the issue to a statewide vote, perhaps as early as this November. The referendum would permit Atlantic City casinos to offer in-person wagering on professional sporting events, but not college or amateur games.
But opponents, the National Football League among them, doubted the measure would ever get out of the Legislature.
"It has no chance of passing," said state Sen. William Gormley (R-Atlantic). "There's a federal law against it. ... Until federal law is changed, this is just a pointless exercise."
Since the early 1990s, federal law has allowed sports betting in four states: Nevada, Oregon, Delaware and Montana. New Jersey could have opened sports books in its casinos at the same time, but the Legislature declined to legalize betting.
The issue came up again after Operation Slap Shot, a state investigation into an illegal book-making operation by a New Jersey State Police trooper, Jim Harney, and a former National Hockey League player and current associate coach, Rick Tocchet. Over a five-week period, authorities allege, they raked in $1.7 million in wagers, including some from Janet Jones, the wife of hockey great Wayne Gretzky.
Several state lawmakers, mainly from South Jersey, seized on the case against Harney and Tocchet as a reason to resurrect the move to legalize sports gambling.
Assemblyman Jeff Van Drew (D-Cape May), a sponsor of the bill and the chairman of the Tourism and Wagering Committee, said the proliferation of illegal and Internet betting on sports -- $400 million a year by some estimates -- makes it clear there is an appetite for legal sports books. He said New Jersey should be cashing in on the taxes that can be generated from legal sports book operations.
"We know that this is not an easy road, but even if there is only a 10 or 20 or 30 or 40 percent chance, it behooves us as a Legislature to take that chance," Van Drew said.
Stephen Schrier, a lawyer in private practice and a former deputy attorney general in gaming enforcement, told Van Drew's committee the federal law barring legalized sports betting is vulnerable to a challenge.
"The question is why should Nevada or Delaware have the chance to reap enormous benefits from legalized sports gaming when New Jersey does not," Schrier said. "The inherent unfairness and state favoritism provides an impetus for challenging the law."
While similar legislation passed the Assembly last year, it stalled in the Senate, where Senate President Richard Codey (D-Essex) has concerns about the federal law.
Gov. Jon Corzine was noncommittal yesterday.
"I think to enhance Atlantic City over a period of time, it's worthy of consideration," Corzine said. "I'd like to be sure whatever legislation also comes with the kinds of control structure that would give the public confidence that it wouldn't be corrupted."
The bill (A1046) cleared the tourism committee on a 4-0 vote, with both Republican members abstaining. It now goes to the Assembly Appropriations Committee.