Third Circuit upholds New Jersey sports betting decision

The Court of Appeals for the Third Circuit has made a decision in the New Jersey sports betting case and, as expected, it upheld the original court's decision to not allow wagering on sports in the state.

Soriano is a gaming and litigation attorney in New Jersey who has been following this case closely. The decision was 128 pages long and he summarized it quickly here.

Some positive news for sports bettors is it was decided 2-1 among the three judges with partial dissent.

Griffan Finan, a gaming attorney at Ifrah Law in Washington, D.C., says New Jersey has 90 days to appeal the decision to the Supreme Court if that's the route the state decides to go. If it decides to go the en banc route, it will have 45 days.

Because the ruling in favor of the leagues was upheld, this case likely won't take on a heightened importance for the Supreme Court. Experts have told me in past discussions this means we could be looking at as much as a year or two for this whole process to play out. Also, this schedule for the Supreme Court shows hearings are booked up until April 2014.

There is reason to remain optimistic, though, starting with recent history of Supreme Court decisions.

And there's also the dissent factor. Judge Thomas Vanaskie found the leagues had standing in this case but that it also "violates the principles of federalism."

Here's a quick breakdown of the positive and negative of the ruling for New Jersey and sports bettors (using Soriano's summary as a guide):

THE GOOD

-Court acknowledged New Jersey's strong arguments against PASPA as a matter of policy
-2-1 decision, so there was dissent
-Last term the Supreme Court reversed or vacated 5 of the 6 appeals from the Third Circuit
-Court said Congress has the authority to regulate sports betting based on Commerce Clause, dismissing the leagues' argument to the contrary
-Judge Vanaskie wrote in his dissent that PASPA "violates the principles of federalism"
-"Vanaskie concludes that because PASPA dictates the manner in which states must regulate interstate commerce, it violates anti-commandeering and is unconstitutional."
-Vanaskie also said it "would be natural for new Jersey citizens to believe that state law governs sports gambling as well (as lotteries)...When New Jersey fails to authorize or license sports gambling, its citizens will undeniably blame state officials even though state regulation of gambling has become a puppet of the federal government, whose strings are in reality pulled (or cut) by PASPA."
- Sen. Ray Lesniak in a statement: New Jersey will "continue to fight this injustice by either appealing to the US Supreme Court or to the entire Court of Appeals." -Good news for Nevada bettors: The court found the purpose of PASPA was to curb an increase in sports betting, so getting rid of it where it already existed at the time of PASPA's founding wouldn't make sense.

THE NOT-SO GOOD

-Role of court is not to judge wisdom of PASPA, just constitutionality
-Despite dissent, ruling still in favor of leagues
-Court upheld ruling the leagues do have standing to sue state to halt sports betting
-Court ruled the leagues have suffered "an injury in fact" because the leagues' reputation may be harmed by the "unwanted association" with sports betting
-Court shot down New Jersey's argument against anti-commandeering ie. "PASPA doesn't tell the states what to do; it bars them from doing something they want to do."
-Hope surrounding decision in Shelby County Voting Rights case was quashed somewhat. Court said voting rights and gambling are two totally separate issues and the equal sovereignty argument does not apply.

To read the decision in its entirety, click here.

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Posted by KJK
11 months ago

Posted by KJK 10 hours ago its our money we have the right to do what we want with it besides paying taxes that they throw you in jail for. sport gamblers we have to unite to fight another government ploy. harry reid wants it in vegas alone and we all know how high up he is . lets worry about not getting our kids shot up in syria legalize the damn thing and become a democratic nation again oh and i forgot tax revenue.oh and dont let me forget about that jerk selig the guy who turned his head on peds in the late 90s when they were hitting all those home runs to get fans back in the seats when baseball was in the gutterer now he is mr advocate such a jerk
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Posted by DavidGurney
11 months ago

How then can Colorado and Washington sell weed-also in violation of federal law?
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Posted by budwiser
11 months ago

it's just painful. when it comes to politics, very rarely does anything go right. i've learned to be a pessimist a long time ago, to expect screwing the public just about every time. the last thing people in authority care about are the people they rule over. and by ruling over, i mean ruling over-they call this a free country, well it's not free to wager on your favorite sports team in any other state than the desert of nevada. maybe there's hope in the supreme court, given this court has no balls. but, it'll take years if it even gets there, so this is a dead deal for at the very least the short term. another sad day for the country-less $ for new jersey and more gambling in the shadows.
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Posted by nguyen69
11 months ago

what a shocker! NOT!
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Posted by cheeser
11 months ago

19th century-like decisions like this one keep some of us in business.
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Posted by lvexpert41
11 months ago

Unbelievable. Sports betting is a right. Anyone if they want to should have the ability to place a bet without a bookie. I feel bad for east coast residents. That's why I live in Vegas. Keep fighting NJ.
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Top Response

Posted by lvexpert41
11 months ago

"Unbelievable. Sports betting is a right. Anyone if they want to should have the ability to place a bet without a bookie. I feel bad for east coast residents. That's why I live in Vegas. Keep fighting NJ."