Sports Leagues “Betting” On Third Circuit Opinion in NJ Appeal

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The NFL, NBA, NHL, MLB and the NCAA asked the Third Circuit to affirm an opinion enforcing the Professional and Amateur Sports Protection Act of 1992 (PASPA).  New Jersey and others will have until June 14, 2013 to file an answer to the leagues’ recently submitted brief.  The sports leagues want the law to stand and prevent New Jersey from allowing sports gambling.  According to the Leagues, sports gambling threatens the integrity of their games.

PASPA was enacted by Congress in 1992.  The law prohibits all but four states from allowing sports wagering.  Delaware, Montana, Nevada, and Oregon, all had sports gambling schemes before the law was enacted.  The 1992 law was signed to regulate sports gambling throughout the country by preventing governments and private actors from engaging acts that are “inconsistent with the federal policy” against sports gambling.

In 2012, after a vote by residents to amend the state’s constitution, the New Jersey Governor signed a measure that allowed sports gambling in the state.  Later that year, a case was filed in federal court that challenged PASPA.  On February 28th, 2103, the district court upheld PASPA.

Looking to get their hands on the billions of dollars spent on sports betting each year, New Jersey appealed the decision.  The state argues that PASPA is unconstitutional because it unfairly allows other states to permit gambling in violation of the “equal sovereignty” principle.  In addition, the state says that the leagues don’t have standing to bring the case.  They assert the leagues can not show an actual harm as required for standing to sue.

The leagues contend that PASPA is a standard law squarely in the commerce power.  Congress has the right to make economic distinctions between regions, they say.  Additionally, the leagues assert that standing is obvious.  They have an interest in the economic benefits others are receiving from their games as well as the perception of the games by fans.

US Dept. of Justice also has filed its brief in the NJ sports betting case

In Defense of New Jersey Sports Betting

Cash-Hungry States Eye Sports Betting, to Leagues’ Dismay

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