New jersey sports betting rehearing
A federal appeals court, apparently conflicted over New Jersey's attempts to legalize sports betting at casinos and horse racing tracks. Court Ordered Rehearing En Banc on October 14, the New Jersey Constitution to permit sports gambling. The. PHILADELPHIA — A federal appeals court on Wednesday agreed to review its previous decision blocking legal sports betting in New Jersey. VEGAS BETTING LINES NBA FINALS
The oral argument was also a rare one in which two veteran Supreme Court advocates—Paul Clement representing the leagues and Ted Olson representing New Jersey —argued against each other in a setting other than the Supreme Court. In an earlier iteration of the case, New Jersey argued that PASPA was unconstitutional because it commandeered the states and made them instrumentalities of the federal government by requiring them to pass or maintain restrictions on sports betting.
New Jersey contends that if PASPA can be construed in a way that prevents a state from repealing an existing law, it is unconstitutional under the Tenth Amendment because Congress is essentially requiring a state to maintain a law on its books. The leagues, on the other hand, argue that there is no commandeering problem because PASPA does not require states to act immediately to carry out a congressional mandate.
For a refresher on the anti-commandeering doctrine, see Printz v. United States and New York v. United States. While courts generally try to avoid deciding cases on constitutional grounds, the Third Circuit may reach the Tenth Amendment question. They're concerned about states having state lotteries that involve sports gambling. They are concerned with racetracks that already have venues for state authorized gambling having sports gambling.
If you look at the Senate Report it's very specific. And Congress is worried that they're going to get involved in sports gambling as a way -- this is 20 years ago, or 20 plus years ago, but the horse tracks were already in a little bit of financial trouble, and there was concern that they're going to try to add sports gambling as the next solution. And Congress was very concerned about that. Now, I think what that shows you is that Congress was particularly concerned with the idea that sports gambling would take place in the venues that states had selected as the being the venues for state authorized gambling.
But there are several flaws with Mr. Clement's decision to highlight only select portions of the Senate Report. For one, it makes no mention of the primary legislative intent behind PASPA: to stop the spread of state-sponsored sports betting and to maintain the integrity of sporting events. Clement suggests. The rule of lenity is premised on two principles.
First, a fair warning should be given to the world in language that the common world will understand, of what the law intends to do if a certain line is crossed. A second goal of the rule of lenity is to minimize the risk of selective or arbitrary enforcement, and to maintain the proper balance between Congress, prosecutors, and the courts. But both the leagues and the DOJ struggled to pinpoint the line of demarcation.
When asked by Judge Fuentes how far a repeal must go, Mr. I do not expect this to happen, particularly since it was not raised by the parties or by the Court. But it remains a possibility. Judge Fuentes' concerns go to the very heart of why I believe New Jersey may be on the losing side yet again despite having what I consider to be the better of the legal arguments under a pure statutory interpretation analysis.
The following exchange between Judge Fuentes and Mr. Olson demonstrates this tension: "THE COURT: I'm really impressed in how this whole thing is going to unfold, because I was very impressed, in reading your brief, with the number of regulations that the state is repealing, including oversight by the state and Casino Control Commission, the Division of Gaming Enforcement. They will all, according to the state, have no role whatsoever in sports betting. And that's — THE COURT: Well, I'm a little concerned about that, because the function of those [regulatory bodies] is to preserve integrity in the process and now the state is saying they're out of this.
So this is essentially a laissez-faire. Sports betting is going to take place in the casino with no oversight whatsoever. As I said, like a ping-pong table game or a debate tournament. If it were, I would have a response to that. If the state is engaged, to address your exact question, in regulating the activity, that might involve the imprimatur of. It's not sponsoring, it's not operating, its not advertising; promoting; licensing; or authorizing. It's regulating. Would that be permissible? There are six specific activities that you cannot engage in, but regulating is not part of that.
It would allow the Third Circuit to interpret PASPA in a manner that is favorable to New Jersey and in accordance with the above-described canons of statutory construction without having to worry about the negative consequences associated with unregulated sports betting.
As noted earlier, Judge Rendell was also the panelist who invoked the "associated words canon" during oral argument. Her comments from the bench strongly suggest that she might be inclined to rule in favor of New Jersey or is at least looking for a reason to do so. If New Jersey prevails, sports betting could become a reality at the state's licensed casinos and racetracks in time for the beginning of the NFL season.
But as the decision date stretches into July, that may prove to be a long shot even with a New Jersey victory because the leagues and the U. Department of Justice would get 45 days to file a petition for hearing en banc. Rehearing en banc is a mechanism available to the losing side to seek review of the decision by the entire court, rather than just the three-judge panel that decided the appeal.
Normally, the deadline for seeking rehearing is 14 days from the date of the decision. That means we are looking at a late August deadline, assuming that there is a panel decision by mid-July. Thus, for Monmouth Park Racetrack or any other New Jersey track or casino to be able to offer sports betting by Week 1 of the NFL season September 10 , an appellate decision plus a denial of rehearing would have to occur no later than September 3, since the injunction entered by the lower court would not be lifted until 7 days has passed from the denial of rehearing.
With each passing "non-decision" day, the prospect of Monmouth Park Racetrack launching sports betting in time for Week 1 of the NFL season is in jeopardy, but I'm sure that the track operators will settle for any date in or even Looking beyond the Third Circuit's jurisdictional territory, we could see as many as 10 other states passing similar partial repeal laws within a matter of months following a New Jersey victory.
Several states--most notably, Minnesota, Indiana and South Carolina, to name just a few--are not even waiting. The legislatures of those states have already proposed bills legalizing single-game sports wagering but not the partial repeal version favored by New Jersey. While these bills are only in a preliminary stage at this juncture, expect them to be fast-tracked if New Jersey wins.
Further, a victory by New Jersey will undoubtedly—and perhaps quickly—lead to new federal legislation that would expand legalized sports betting beyond Nevada. But the leagues and Congress have offered no definitive timetable for federal legislative reform, or any guarantees. Most observers believe that there is little chance of any Congressional action before especially with a Presidential election next year.
Many states maintain blanket prohibitions of all wagering activity, including sports wagering, unless specifically authorized.
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