3rd Circuit Strikes Down New Jersey Law Authorizing Sports Betting

On August 25th, 2015, New Jersey’s legislative attempt to permitsports betting failed in the 3rd Circuit. In a 2-1 decision, the 3rd Circuit found that the state law allowing sports betting at casinos and racetracks violated the federal Professional and Amateur Sports Protection Act of 1992 (PAPSA).

PAPSA bars all but four states from licensing or authorizing sports betting, and “the 2014 [New Jersey] law does exactly that,” the opinion said. Two weeks after a three-judge U.S. Third Circuit Court of Appeals panel rejected the state’s latest bid to allow casinos and racetracks to offer wagering on sports games, Govenor Chris Christie’s administration filed a motionfor the full Third Circuit to re-hear the case.

Sportsbooks, venues where gamblers can bet on various sports, were outlawed in most states in 1992 under the Professional and Amateur Sports Protection Act, which established a federal ban on legalized sports gambling in every state except Nevada, Montana, Oregon and Delaware.

The cases are NCAA et al v. Governor of New Jersey et al., case numbers 14-4546, 14-4568 and 14-4569, in the U.S. Court of Appeals for the Third Circuit.

Bricketto, Martin, NJ Sports Betting Law Struck Down By 3rd Circ., LAW 360 (Aug. 25, 2015 10:36 PM),http://www.law360.com/articles/684051/nj-sports-betting-law-struck-down-by-3rd-circ

Zagger, Zachary, NJ’s Long-Shot Rehearing Bid May Pay Off In Betting Case, LAW 360 (Sep. 9, 2015 10:39 PM),http://www.law360.com/articles/700826/nj-s-long-shot-rehearing-bid-may-pay-off-in-betting-case