U.S. Supreme Court agrees to hear N.J. sports betting case

WASHINGTON -- The U.S. Supreme Court agreed Tuesday to hear arguments on whether sports betting should be legalized at racetracks and casinos in New Jersey.

The justices, as is custom, gave no reason for agreeing to hear the appeal of a court decision that threw out the state's latest effort to legalize wagering on sports games. The case would be argued during the court term that begins in October.

The court in January had delayed a ruling on the case, saying it first wanted to hear what President Donald Trump had to say on the issue. His acting solicitor general, Jeffrey B. Wall, urged the justices in May not to take the case.

Wall said that New Jersey's efforts to get around the federal ban on sports betting by repealing state laws and allowing such wagering to proceed without regulation "is no different than a positive enactment authorizing such gambling."

Daniel Wallach, a sports gaming expert, said getting the nation's highest court to hear the case was the "No. 1 obstacle blocking New Jersey's path" because the court grants fewer than 2 percent of petitions.

"This is the closest New Jersey has ever been to legalized sports betting," said Wallach, a gaming and sports law attorney with Becker & Poliakoff in Fort Lauderdale, Fla. "This is a sea change in the whole movement surrounding sports betting in the U.S."

Wallach said if the court sides with New Jersey, sports betting could open at racetracks and casinos by next June, in time for the 2018 NFL season.

State officials have sought since 2011 to legalize sports betting to help revive the state's struggling racetracks and Atlantic City's struggling casinos. Estimates show $150 billion is illegally bet on sports games each year in the U.S.

But the National Collegiate Athletic Association and the four major professional sports leagues -- Major League Baseball, National Football League, National Basketball Association and the National Hockey League -- have sued to stop them, even as some of the leagues have partnered with daily fantasy sports operations.

At issue is a 1992 law that banned sports betting in all but four states, Delaware, Montana, Nevada and Oregon.

New Jersey's latest setback came in August 2016, when the U.S. Third Circuit Court of Appeals in Philadelphia ruled in a 10-2 decision that sports betting is  "clearly and completely legally prohibited" under federal law.

State Sen. Raymond Lesniak (D-Union), the lawmaker who has led New Jersey's fight, said he now is "very confident" of the state's chances of prevailing.

"I've been knocked down five or six times," said Lesniak, a 40-year legislator who is set to retire from the state Legislmature in January. "You get a little groggy. But I never give up. And I expect to win."

State Assemblyman Ralph Caputo (D-Essex), who has worked with Lesniak on the matter, said the fact the court accepted the case bodes well for the state.

"If they had denied it, there would be no discussion at all," Caputo said. "This is very promising."

State Sen. Joseph Kyrillos (R-Monmouth), another sponsor of the sports betting legislation, said legalizing such wagering would "spur economic growth and bolster our long beleaguered equine industry."

"These decisions should be made at the state level," Kyrillos added. "That's why this is an important case not only for New Jersey, but for every state in the nation."

Indeed, experts say a ruling in favor of the Garden State could open the door for states across the country to pass laws allowing such wagering.

Arizona, Louisiana, Mississippi, West Virginia and Wisconsin have all joined New Jersey's effort to have the case heard by the Supreme Court.

The casino industry earlier this month announced a new American Sports Betting Coalition to try to get Congress to repeal the 1992 law and leave it up each individual state to decide whether to allow such sports betting.

In addition, U.S. Reps. Frank LoBiondo (R-2nd Dist.) and Frank Pallone Jr. (D-6th Dist.) have introduced legislation to allow New Jersey to have sports betting.

"The citizens of New Jersey overwhelmingly support legalized sports betting and acted in a referendum to show that support," Pallone said. "Both Congress and the Supreme Court should respect these actions."

LoBiondo called Tuesday's court action "a long time coming."

"I have long argued that legal sports betting will have a significant and positive impact on South Jersey, bringing tourism and tax revenue to the state and reinvigorating Atlantic City," he said.

The casino industry's trade group also welcomed the court action. Geoff Freeman, president and chief executive of the American Gaming Association, which has launched a national campaign to legalize sports betting, said he hoped it would "provide further encouragement for Congress to take the steps to create a regulated sports betting marketplace."

The cases are 16-476, Christie et al v. National Collegiate Athletic Association et al, and 16-477, N.J. Thoroughbred Horsemens Association v. National Collegiate Athletic Association et al. They will be consolidated before the high court.

The Associated Press contributed to this report.

Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook.

Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him on Twitter @JDSalant or on Facebook. Find NJ.com Politics on Facebook.

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