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BETTING Leagues challenge NJ’s regulated sports betting plans New Jersey has sought to authorise exempts pari-mutuel wagering on that New Jersey was in violation of races and jai-lai . The third was for PASPA. New Jersey countered by sports betting through its ‘Sports New Jersey, if within one year, it asking the District Court to Wagering Law’, which is opposed authorised sports wagering 3 . dismiss the complaint because the by US sporting leagues. Linda PASPA authorises professional and Sports Leagues lacked standing to Shorey, Anthony Holzman and Tad amateur sports organisations to file bring it, as they could not show civil actions to enjoin violations of any injury resulting from the Macfarlan of K&L Gates, assess its prohibition, if their competitive Sports Wagering Law. New Jersey’s chances of success. games are the alleged basis of the After a period of discovery, New New Jersey and its citizens took all violation 4 . New Jersey failed to Jersey, on 21 November 2012, filed the steps required under New authorise sports wagering in the a cross-motion for summary Jersey law to authorise sports year provided by PASPA. judgment in which it asserted not wagering at Atlantic City casinos Sports wagering was not only that the Sports Leagues lacked and racetracks. Whether anyone authorised in New Jersey until standing, but also that PASPA will be able to place a legal sports January 2012. The authorisation violated the United States wager in New Jersey, however, was possible because in November Constitution. On the same date, depends on the outcome of 2011, citizens voted to amend the the New Jersey Thoroughbred Linda Shorey litigation in which the question of New Jersey Constitution to permit Horsemen’s Association (NJTHA) the constitutionality of the federal the legislature to authorise sports and two legislative leaders asked to law that prohibits New Jersey from wagering at Atlantic City casinos intervene in the case. Intervention authorising sports wagering is the and current or former New Jersey was granted on 11 December 2012. decisive issue. racetracks 5 . The authorising NJTHA then filed an answer and legislation - the ‘Sports Wagering affirmative defences to the PASPA and New Jersey Law’ - became effective on 17 complaint and a legal The Professional and Amateur January 2012 6 . Any casino or memorandum in opposition to the Sports Protection Act 1 (PASPA), racetrack wanting to offer sports Sports Leagues’ motion for Anthony enacted in 1992, makes it unlawful: wagering has to obtain a license 7 . summary judgment. The Holzman l for a state ‘to sponsor, operate, Regulations governing sports affirmative defences asserted that advertise, promote, license, or wagering, required by the Sports PASPA was unconstitutional. authorise’; and Wagering Law, were proposed on 2 New Jersey’s constitutional l for a person ‘to sponsor, operate, July 2012 and issued on 15 October challenge, asserted on 21 advertise, or promote’ - 2012 8 . November 2012, triggered a 60-day ‘a lottery, sweepstakes, or other period for the United States to betting, gambling, or wagering The litigation decide to intervene, during which scheme based, directly or indirectly In August 2012, the NCAA, NBA, time the District Court could not (through the use of geographical NFL, NHL, and MLB (collectively, decide the constitutional issue. As a Tad Macfarlan references or otherwise), on one or ‘Sports Leagues’) filed a complaint result, the District Court, on 18 more competitive games in which against New Jersey’s Governor and December 2012, heard oral amateur or professional athletes the Directors of the New Jersey argument only on the question of participate, or are intended to Division of Gaming Enforcement the Sports Leagues’ standing. participate, or on one or more and the New Jersey Racing On 21 December 2012, the performances of such athletes in Commission (collectively, ‘New District Court issued its opinion such games’ 2 . Jersey’), asking the US District on standing. Stressing that the PASPA, however, contains three Court for the District of New Sports Leagues had to show only a exceptions to this prohibition. The Jersey to declare that the Sports ‘“trifle” of an injury’ , the District first exempts States where sports Wagering Law violates PASPA and Court found they had shown an wagering was legally conducted at to enjoin New Jersey from injury resulting from the Sports any time between 1 January 1976 implementing sports wagering 9 . Wagering Law that would be and 31 August 1990. The states in Three days after filing the addressed if the Law were found to this category are Nevada, Oregon, complaint, the Sports Leagues violate PASPA and New Jersey Delaware and Montana, although asked the District Court to enter enjoined from implementing the only in Nevada was wagering on summary judgment in their favour, Law 10 . The injury was the individual college and professional asserting that there were no reputational harm the Leagues games allowed. The second disputed facts and that it was clear would suffer because ‘their fans’ 02 world sports law report february 2013
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