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New Jersey goes back to court to fight for legalized sports gambling

A.J. Perez
USA TODAY Sports
New Jersey back in court to fight for legalized sports betting.

Lawyers representing New Jersey went to court Wednesday and made their latest argument that the state should be allowed to offer sports betting at casinos and horse-racing tracks.

Former U.S. Solicitor General Theodore Olson --- who led a legal team that represented President George W. Bush in the disputed 2000 election --- gave the bulk of the 30-minute argument on behalf of New Jersey at the Third Circuit Court of Appeals in Philadelphia. It’s the most recent --- and potentially last --- attempt in New Jersey’s efforts to allow sports gambling.

Olson faced tough questions from the 12-judge panel on New Jersey's attempt to comply with Professional and Amateur Sports Protection Act (PASPA) of 1992, sports and gambling law attorney Daniel L. Wallach told USA TODAY Sports.

"The court appeared skeptical," said Wallach, who attended the hearing. "There were not many smiling faces when the lawyers for New Jersey left court."

A decision isn't expected for months.

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The U.S. Attorney’s Office has contended even before New Jersey Gov. Chris Christie signed the disputed bill into law in 2014 that the state isn't allowed to offer sports betting under the PASPA, a federal law that made state-sanctioned sports betting illegal in most states. (Nevada, Montana, Oregon and Delaware were grandfathered in.) A federal district court and then a three-judge panel at the Third Circuit Court of Appeals sided with feds, whose position on limiting sports betting had the backing of the NFL, MLB, NBA, NHL and NCAA.

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That initial decision by the Third Circuit Court of Appeals announced in August was vacated when Wednesday’s en banc rehearing was granted in October.

New Jersey voters originally passed a law to legalize sports betting in the state in 2011 as a means to bolster flagging tourism in Atlantic City and aid the state’s racetracks. The fight has been obscured in recent months by the legal wrangling over daily fantasy sports, which was deemed illegal under state law in New York, Texas and other states.

“Atlantic City’s demise has been driven by the fact the casinos don’t have an attraction that would lead visitors to buy rooms, go out to dinner to see a show,” State Sen. Raymond Lesniak, a longtime backer of online and sports gambling, told USA TODAY Sports. “When they come to Atlantic City now, they usually go for just the day and not for a long weekend. To have an event like the Super Bowl where people can bet would be huge boost for Atlantic City. It’d also help put fannies in the seats at the race tracks.”

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Christie signed the original law in 2012, but the effort was blocked in federal court. A reworked bill passed the state legislature and was signed by Christie two years ago.

Paul D. Clement, a former U.S. solicitor general who represents the leagues and the NCAA, led the government's argument on Wednesday. Paul J. Fishman, the U.S. Attorney for the District of New Jersey, also argued New Jersey doesn't have the legal standing to offer sports betting.

New Jersey could petition the U.S. Supreme Court if it loses the appeal, although it would be at the high court's discretion to take up the case.

"That would be a Hail Mary," Wallach said. "Less than one percent of those who file certs are heard by the Supreme Court. That would be New Jersey's only option after today."

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