New Jersey News - Gambling executives push sports betting

[clevfan]

Gambling executives push sports betting

Tuesday, May 04, 2004
By TERRENCE DOPP
The Express-Times

TRENTON -- Legalized sports betting in Atlantic City would be a financial windfall for New Jersey and allow casinos to compete with flashier Las Vegas counterparts, industry executives testified Monday.

But detractors of a plan to allow the wagering say it would be a corrupting influence on sports such as baseball, football, basketball and hockey.

The two views clashed Monday as the Assembly Tourism and Gaming Committee held hearings on whether to move ahead with plans to legalize sports books in New Jersey casinos.

"In short, legalized sports gambling would tarnish the image of the game," said Jon Moyer, special counsel to the National Football League. "Public confidence is the cornerstone of our game."

Moyer said betting on the games would create suspicion over unexpected events and make fans believe "the fix is in."

But some lawmakers see the matter differently.

By bringing sports betting to New Jersey's dozen casinos, extra revenue from the 8 percent casino tax could be pumped into health care for seniors and charity hospital care, supporters said.

Casino executives said the Pharmaceuticals for the Aged and Disabled program sees $350 million annually from casino revenue.

As a bonus, supporters added, the legalization would fend off potential challenges from states that have lifted bans on wagering on games including Nevada, Pennsylvania, Oregon and Montana.

"We need to pursue every option possible to make this a reality in New Jersey," said Assemblyman Jeff Van Drew, D-Cape May, who pledged citizens will have the final say in a public referendum.

Joe Lupo, vice president of operations at the Borgata Hotel & Casino, said sports wagering amounts to $80 billion to $300 billion in America with 1 to 3 percent conducted legally.

New Jersey's share of the casinos' $50 million profits would be at least $5 million to $8 million, he said.

"The fact of the matter is that sports betting already exists in New Jersey as it does in many other states. New Jersey just isn't benefiting from it," said Lupo, who was head of sports wagering at the Stardust Casino in Las Vegas, the epicenter of sports bookmaking.

"Atlantic City casinos would be able to provide the type of environment experienced in destination resorts such as Las Vegas."

Is it worth it?

When voters OK'd legalized table gambling in Atlantic City, they constitutionally tied the money generated to senior health care programs.

Since that 1978 vote, two previous attempts at allowing sports books in the state have died.

Typically opposition has come from professional sports leagues and those who maintain gambling is morally wrong.

"All of the games New Jersey made legal were created as gambling vehicles. They exist for no other reason and revolve around pure chance," Moyer said. "What we're talking about here if this comes to fruition is the only form of gambling that would turn on a human endeavor."

One Republican said questions remain whether it will be worth overlooking moral objections.

"I think in the past there has been a concern about it for that reason," said Senate Minority Leader Leonard Lance, R-Hunterdon/Warren, a member of the Senate budget panel. "I want to review it very closely."

Lupo, the Borgata executive, said major sporting events prove a huge revenue boost for Las Vegas as bettors and sports fans flood the city during Super Bowl season.

"In Las Vegas, during times such as Super Bowls and other events, occupation rates are full. People are not coming just to see the events. And Atlantic City will see that as well," Lupo said.

Casting further doubt on the current push is a federal interstate commerce law allowing sports betting in just four states.

Van Drew said this law could likely be challenged because the bets would be placed in person at casino windows, exempting them from interstate commerce regulations.

"This is not just an Atlantic City issue, this is a New Jersey issue and a senior issue," he said. "Regardless of your opinion on the subject, I believe anything would need to go before voters."

While remaining cagey about his support for the proposal, Gov. James E. McGreevey has been receptive to the idea.

"It is an intriguing idea that deserves some scrutiny," McGreevey spokesman Micah Rasmussen said. "We look forward to Assemblyman Van Drew's findings in the Assembly committee."

No legislation or timeframe has yet been introduced for bringing sports betting to New Jersey.

Never in this mans lifetime will you see it.

[nino brown]

i agree. the mob would lose a lot of business.

[The Actuary]

When PA gets slots they will have little choice.

[degenerategambler]

The U.K has had legalized gambling forever, the sports world hasn't crumbled there.

[clevfan]

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.

[The Actuary]

Hahahahaha,

Lupo has some familiar looking scoreboards in the Borg poker room,

fine print-these odds are for entertainment puposes only.[img]i/expressions/face-icon-small-tongue.gif[/img]

[BuzzRavanaugh]

I think one of the states will challenge the law. I think it would be a great windfall if they could do it right. I met with a guy who has some power and he wanted to know what I knew about the post up business. I think this could revolutionize the industry. Have state run phone accounts and tax the bets to benefit the states. It would be interesting.

However I am sure this won't happen because the states would have to restrict bets to people in the state.

[Buzkil]

"an interesting idea worth exploring"

Duhh

Sports betting in AC might diminish Vegas as the epicenter of the legalized wagering universe, but I really think that it would start the ball rolling towards full acceptence of betting as a legitimate right of citizens, not an immoral or somehow unclean hobby. I imagine that majorwager would also be able to help promote sports betting as an equally legitimate investment opportunity for those who take it as seriously as the stock market.....

[clevfan]

NFL fighting N.J. plan to legalize sports betting

May 4
By Tom Bell
ASSOCIATED PRESS


TRENTON, N.J. -- Officials from Atlantic City casinos enthusiastically supported the idea of sports betting in New Jersey, but an NFL representative told an Assembly committee Monday that legalizing gambling on games would be a mistake.

NFL attorney Jay Moyer urged lawmakers to drop their pursuit of bringing sports betting to Atlantic City because the move would encourage state residents to gamble and change the nature of how fans watch games.

"It would create a pervasive climate of suspicion about any controversial play in a game," Moyer said. "It would send two very bad messages. One is that anything goes when it comes to raising revenues and, two, that gambling and sports are natural partners."

New Jersey officials are exploring the possibility of challenging a federal law that prohibits most states from allowing betting on sports. Assemblyman Jeff Van Drew, D-Cape May, said recent U.S. Supreme Court rulings involving interstate commerce would seem to offer hope to New Jersey.

"It does not seem implausible that the federal law is at least susceptible to a legal challenge," said Van Drew, the chairman of the Assembly Tourism and Gaming Committee.

"If this committee is convinced that sports gambling will have a positive impact on Atlantic City and our state as a whole we need to pursue every possible option to make it a reality in New Jersey."

Some lawmakers believe the increased revenue from sports betting would boost state coffers and make Atlantic City more attractive as a tourist destination. They said that's important because a growing number of states now have casino gambling and others are considering it.

Federal law allows sports betting in Nevada, Oregon, Delaware and Montana, but only the first two states offer it. Nevada has full-service sports books, while Oregon has a state-run pro football pool during the season.

The federal government gave New Jersey the opportunity to legalize sports betting in 1994, but proponents could not gather enough support and the issue never made it to the ballot for voter approval.

Joseph Lupo, vice president of operations for the Borgata Hotel Casino & Spa in Atlantic City, said the state was missing out on a lot of revenue by not allowing sports wagering.

"The fact of the matter is that sports betting already exists in New Jersey," Lupo said.

He said that those who want to bet on NFL games or other sporting events simply call illegal bookmakers or go onto Internet gambling Web sites.

Lupo said he believed that Atlantic City casinos would bring in more than Las Vegas sports books, where nearly $2 billion was wagered last year.

He said Atlantic City suffers because it can't generate the buzz that Las Vegas does on big weekends like that of the Super Bowl because of the lack of sports betting.

Rachel Bogatin, vice president of casino operations at the Atlantic City Hilton, agreed. She said those who are new to Atlantic City often ask about sports betting.

"One of the first things out of people's mouths is, 'Do you have a sports book?' " Bogatin said.

Lupo told lawmakers that this state has a leg up on others that would consider sports betting at casinos because New Jersey already has a strong regulatory system in place.

But Moyer said no state can ensure that problems won't develop because of sports gambling. He cited Pete Rose's admitted gambling and other wagering scandals in professional and college sports.

After his testimony, Moyer was asked if part of the popularity of the NFL and its high television ratings was due to the large number of people who bet on games even if it's just in office pools.

"I can't prove that, but I can't deny," he said. "On the margins maybe it makes it a little bit higher, but if we had to make a trade-off, we would."

[blacksheep]

"In short, legalized sports gambling would tarnish the image of the game," said Jon Moyer, special counsel to the National Football League. "Public confidence is the cornerstone of our game."
__________________________________________________ _________________________________

How is allowing sports wagering in NJ (or any other state for that matter) going to tarnish the "image of the game" any further than what already exists now, with legal betting allowed in Vegas already? With statements such as this, you can see why the NFL has been known as the "No Fun League" for some time. There arguments against legalized gambling are irrational.

[blacksheep]

That should be, "Their arguments". Duh!!!

[nfleqbc]

After his testimony, Moyer was asked if part of the popularity of the NFL and its high television ratings was due to the large number of people who bet on games even if it's just in office pools.

"I can't prove that, but I can't deny," he said. "On the margins maybe it makes it a little bit higher, but if we had to make a trade-off, we would."

The only reason anybody watches a late-season Cardinals/Lions game (apart from a very small number of diehards for both teams) is because they've got money on it (or they have fantasy players on the teams, which is basically the same thing).