Voters must approve AC sports wagering
Legislators consider challenge to federal ban
Tuesday, May 04, 2004
BY JOE DONOHUE
Star-Ledger Staff
New Jersey voters would have to approve a constitutional amendment to let Atlantic City's casinos open sports betting parlors, the chairwoman of the state's Casino Control Commission said yesterday.
New Jersey officials are exploring the possibility of challenging a federal law that prohibits sports betting outside of Nevada, Delaware, Oregon and Montana. In an appearance before the Assembly Tourism and Gaming Committee, Linda Kassekert, the commission official, refused to say whether the 1993 law was illegal.
But she said she has no doubt that a voter referendum would be needed in New Jersey even if the federal law is rendered invalid by a lawsuit.
The legislative panel took testimony -- but no action -- on a proposal to bring sports betting to New Jersey to help raise more taxes for programs like hospital care for the poor. Just like in the early 1990s, when New Jersey had a chance to legalize sports betting before Congress enacted a federal ban in most states, the issue provoked strong feelings on both sides yesterday.
Opponents like the National Football League and the Council on Compulsive Gambling of New Jersey Inc. said it could taint the sports industry while creating more gambling addicts.
"It tells young people that the bet is more important than the game," said Jay Moyer, special counsel to the NFL. Even without sports wagering in New Jersey, 15 percent of all calls made by gamblers to the council last year, or about 2,300 inquiries, came from people who bet on sports, according to Ed Looney, the executive director.
Joe Lupo, vice president of operations for the Borgata Casino Hotel, an expert in sports betting, estimated gamblers would spend an additional $1 billion to $1.5 billion annually in Atlantic City with sports betting parlors, while generating at least $5 million to $8 million in direct annual tax benefits for the state. Lobbyist Thomas Carver, former executive director of the Casino Association of New Jersey, went further, saying sports betting is so popular along the East Coast that he believes gamblers would spend as much as $10 billion in Atlantic City if the resort has a regional monopoly.
Despite the potential obstacles, Assemblyman Jeffrey Van Drew (D-Cape May), committee chairman, said he intends to pursue sports betting as an option. "I think it is the right thing to do for the revenues. I think this is the right thing to do for New Jersey."
Micah Rasmussen, spokesman for the governor, said sports betting is "an interesting idea worth exploring bearing in mind the complex legal and federal issues involved."
Joe Donohue covers state government. He can be reached at
jdonohue@starledger.com or (609) 989-0208.