Judge: Corzine can aid effort for sports betting

[clevfan]

Judge: Corzine can aid effort for sports betting

Tuesday, November 03, 2009
Trish G. Graber
STAR-LEDGER STAFF

Gov. Jon Corzine can join a legal battle to bring sports betting to New Jersey, a federal judge ruled yesterday in a move that could boost efforts to reverse a 17-year ban on the wagering in the state.

In ruling for the governor, the judge said the lawsuit's outcome could affect Corzine's ability to meet his duties, including determining whether sports gambling could be a revenue source to balance the state budget.

"We're pleased the federal court agrees that Governor Corzine should be permitted to fight for New Jersey's economic interests, and we look forward to arguing the merits of the case in court," said William Castner, Corzine's chief counsel.

Corzine sought to become a party to the suit in July, four months after state Sen. Ray Lesniak (D-Union) sued the federal government, claiming the 1992 sports betting ban discriminates against New Jersey and 45 other states where sports betting is illegal. Only Delaware, Montana, Nevada and Oregon met a deadline to sign up for sports betting.

The Department of Justice argued Corzine should be excluded because the constitutional claims he seeks to advance "do not belong to him; they belong, instead, to the State of New Jersey."

But U.S. Magistrate Judge Tonianne J. Bongiovanni ruled yesterday the existing plaintiffs -- the Interactive Media Entertainment & Gaming Association Inc., representatives of the horse racing industry and Lesniak -- do not adequately represent the interests of the state's executive branch. She gave Corzine until Nov. 12 to file his complaint.

Lesniak said the stakes of the case are high for New Jersey.

"It means hundreds of millions of dollars of revenues, it means enhanced tourism attraction for Atlantic City and our racetracks, it means jobs, it means saving of law enforcement resources because it will drive organized crime out of the business," Lesniak said. "It means a lot for New Jersey."

Both Corzine and Lesniak have said as much as $100 million could be generated annually from sports bets through the state's 8 percent tax on gaming revenue.

Lesniak has said he would like to see sports gambling at casinos, racetracks and off-track betting establishments, in addition to allowing online and phone wagering.

Opponents have said more gambling will only add to addiction problems. Representatives of national sports organizations have also opposed it.