New Jersey's attempt to legalize sports betting has hit another wall. A panel of three judges at the U.S. Third Circuit Court of Appeals in Philadelphia ruled against the state's bid to bring legal sports betting to casinos and racetracks.
The 2-1 majority decision is the latest ruling in favor of the NCAA, NFL, MLB, NBA and NHL. New Jersey was appealing the previous Third Circuit court ruling in 2013 that sided with the 1992 Professional and Amateur Sports Protection Act (PASPA) after the Supreme Court declined to review the appeal last summer.
However, the legal battle will not conclude on Tuesday. New Jersey state Sen. Ray Lesniak plans to appeal for a hearing in front of the entire Third Circuit - known as an en banc, which is a "session where a case is heard before all judges of a court rather than by a panel selected from them."
Judges Marjorie Rendell and Maryanne Trump Barry were of the majority opinion.
"The issue presented in this appeal is whether [the 2014 New Jersey law] to partially repeal certain prohibitions on sports gambling, violates federal law," Rendell wrote, via John Brennan of NorthJersey.com. "The District Court held that the 2014 Law violates the [1992] Professional and Amateur Sports Protection Act ("PASPA"). We will affirm. PASPA, by its terms, prohibits states from authorizing by law sports gambling, and the 2014 Law does exactly that."
Judge Julio Fuentes was of the dissenting opinion.
"There is simply no conceivable reading of PASPA that could preclude a state from restricting sports wagering," Fuentes wrote.
New Jersey is not the only state fighting for the legalization of sports betting. Indiana, Minnesota, New York, South Carolina and Texas also introduced sports betting legislation this year. Sports betting is only legally permitted in Nevada, Oregon, Delaware and Montana, with Nevada being the only state to offer single-game wagering.
"Today's decision by the Third Circuit on sports betting and how gaming is regulated encourages deeper examination about the best path forward on this issue," American Gaming Association President and CEO Geoff Freeman said in a press release. "With Americans betting at least $140 billion on sports illegally each year, it's clear that current law is not achieving its intended result. As the AGA leads an industry-wide task force to study sports betting, we will assess the implications of the court's decision as the gaming industry continues to develop innovative ways to provide products and experiences that meet consumers' demands."
The petition for an en banc hearing must be submitted within 14 days.
