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Court Rules Against New Jersey In Years-Long Sports Betting Fight

Garden State Plans To Continue With Case

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The U.S. Third Circuit Court of Appeals in Philadelphia ruled against New Jersey on Wednesday in the state’s quest to see its casinos in Atlantic City offer sports betting.

The 2-1 decision was in regards to the state passing a law last year that basically made it so that the sports betting business by its casinos wasn’t illegal. The state was trying to make sports betting happen without explicitly authorizing it, which it was not allowed to do, thanks to previous court rulings.

In the latest appeal, much attention was given to the meaning of the word “authorization,” according to New Jersey attorney Christopher Soriano.

“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,” the American Gaming Association said in a statement. "With Americans betting at least $140 billion on sports illegally each year, it’s clear that current law is not achieving its intended result.”

The sports leagues sued New Jersey over its attempt at sports betting, crying foul that the state was trying to circumvent the law. According to ESPN reporter David Purdum, New Jersey lawmaker Ray Lesniak has indicated that the state will now seek a rehearing from the entire Third Circuit Court of Appeals. New Jersey could also ask the Supreme Court again to consider its case. In other words, the fight for Atlantic City sports books is far from over.

No New Jersey casino began sports betting, though at least one was considering it after the state passed the law. But it was clear there were going to be legal challenges almost immediately, as the leagues have been determined to prevent state-by-state sports betting expansion.

The U.S. Supreme Court has declined to hear New Jersey’s case, which challenges the 1990s law that limited sports betting to just a few states. Nevada is the only state in the country with what are considered full-fledged sports books. Delaware has limited sports betting.

In 2014, gamblers in Nevada bet $3.9 billion on sports, an increase of 7.7 percent over 2013. A total of $227 million was won by the sports books on those wagers.

Sports betting in Nevada has never been bigger, and New Jersey wants in.

Though the leagues are against sports betting in New Jersey, NBA commissioner Adam Silver has indicated that he supports legalizing and regulating sports betting at the federal level.