Gov. Corzine joins legal fight to overturn federal ban on sports betting

[clevfan]

Gov. Corzine joins legal fight to overturn federal ban on sports betting

by Chris Megerian/Statehouse Bureau
Thursday July 02, 2009, 4:06 PM

TRENTON -- Gov. Jon Corzine has formally joined the legal effort to overturn a federal ban on sports betting in New Jersey and 45 other states.

Corzine in June said he was throwing his support behind the lawsuit filed in March by Sen. Raymond Lesniak (D-Union), which claims the federal prohibition of sports betting discriminates against the 46 states were it is imposed.

Corzine, who filed the motion today in federal court in Trenton, argued the ban economically disadvantages New Jersey by prohibiting a revenue stream allowed in four other states: Nevada, Montana, Oregon and Delaware.

"Today's filing sends a clear message that we will not sit back and allow the selective prohibitions of this law to deprive New Jersey from the economic benefits sports betting can generate," Corzine said in a statement. "We must do everything in our power to ensure both the casino and horse racing industries in New Jersey remain competitive, especially during the national economic recession."

The Interactive Media Entertainment and Gaming Association, and three horse racing groups are also part of the lawsuit.

In May, Delaware Gov. Jack Markell legalized sports betting in an attempt to fill budget shortfalls of at least $600 million in the coming fiscal year. In June, Corzine said Delaware's decision "is a serious threat to the both the casino and horse racing industries in New Jersey."

The Legislature has already indicated varying levels of support for sports betting. The Assembly said in February 2008 that residents should be able to bet on certain sports in casinos if voters approve. The Senate said four months ago that the United States should life a federal ban on sports betting.

The federal ban was enacted in 1992 but New Jersey was given a year to legalize sports betting, on their own terms. An effort to put the issue before voters in a referendum then failed in the Legislature.

Of the states allowed to have sports betting, only Nevada and Delaware currently offer it.

[SlipperyPete]

When states need money all of a sudden sports betting is not immoral anymore

[clevfan]

Worth it for state to fight betting ban

by Letters to the Editor
GLOUCESTER COUNTY TIMES
Thursday July 09, 2009, 3:00 AM

To the Editor:

Concerning the Times' July 5 editorial, "Gov. rolls dice:"

Gov. Jon Corzine joining my lawsuit to overturn the federal ban on sports wagering (in 46 states, including New Jersey) does more than add another voice to our efforts.

With Corzine as a plaintiff in the lawsuit, we have much better legal standing to challenge the federal ban based on the 10th Amendment to the Constitution: Powers not specifically delegated to the federal government through the Constitution belong in the hands of the states.

That is why I encouraged and welcome Corzine's entry into the fray.
We shouldn't quibble about the cost of fighting this unfair law. (The editorial agreed that the law is unfair, but questioned possible taxpayer funding of the challenge after Corzine's entry.) I am donating my time and that of the lawyers in my firm to challenge this discrimination against our state. Ultimately, the cost to the State of New Jersey to support our efforts will be minimal and the potential rewards will be huge.

According to a report commissioned by the group that filed the lawsuit, New Jersey stands to earn $100 million in state revenue annually -- and that's assuming that all 50 states were to open up the floodgates and allow sports betting within their borders. We're just seeking to be given our fair chance to attract additional tourism as a result of sports betting and to collect funds that are currently being spent in New Jersey on illegal, underground sports book operations, or being funneled to offshore Internet operators outside the Garden State.

I share the Times' concern that our casinos have yet to step up to the plate and work with us, particularly since they stand to gain the most from legal sports wagering in New Jersey. It may be because New Jersey's casinos are operated by companies which are also active in Nevada, and they're currently enjoying the benefits of the federally sanctioned monopoly on sports wagering in that state. Whatever the reason, I hope casino owners in New Jersey will get off the fence and join our efforts.

With or without their support, I'm confident we will succeed, much more so now that Gov. Corzine has joined our efforts.

Ray Lesniak

State Senator

D-Union

Elizabeth

[clevfan]

Here is the Editorial from the July 5 newspaper to which he is writing about:

The Gloucester County Times
EDITORIAL

Gov. rolls dice
Sunday, July 05, 2009
We still agree with the sentiment as do most New Jerseyans, apparently but we want to be clear about who's picking up the tab.

Gov. Jon Corzine on Thursday announced that he's submitted a court motion to support a lawsuit that seeks to overturn the federal law that bans sports betting in New Jersey and 45 other states.

The suit against the 1992 ban was filed in March by state Sen. Raymond Lesniak, D-Union but not officially on behalf of the Legislature. The effort is mainly funded by an Internet gaming group, with backing from horse racing groups. Federal law permits sports betting only in Nevada which, of course, has it Delaware, which is gearing up to have it, plus Montana and Oregon.

Polls show a majority of New Jersey residents want sports betting. Atlantic City's operating casinos would be natural sites for sports books, if the ban is overturned and New Jersey voters say "yes." It's unclear, though, how this form of legal gambling would help the state financially if 45 additional states also can have it.

Whether significant economic benefits from betting on games are real or imagined, the federal ban is everything that Lesniak, and now the governor, say it is: discriminatory, senseless, anti-competitive, etc.

It's good to see Corzine weigh in on this as governor, but the support brief he filed should be enough. Taxpayer money should not be wasted having expensive state Attorney General's Office lawyers arguing every wrinkle in the case. Again, we're scratching our heads as to why the casino owners, who stand to benefit most if the ban ended, are not taking the lead here.

[OLD MAN]

Any word on any kind of court or hearing date yet???

[StarnetGypsy]

Originally Posted by SlipperyPete

When states need money all of a sudden sports betting is not immoral anymore

So there's a silver lining in this recession after all, eh Pete?

[TheGuesser]

Where are all the Conservatives/State Rights advocates? They should be joining in on this lawsuit en masse.