By KENNY WALTER
Staff Writer
OCEANPORT — The fate of New Jersey’s multi-year pursuit of legalized sports betting currently lies in the hands of a dozen federal judges who are slated to hear the case later this month.
Dennis Drazin, adviser to the New Jersey Thoroughbred Horsemen’s Association, said the state will argue for the legalization of sports betting on Feb. 17 in Philadelphia in front of 12 Third Circuit Court of Appeals judges in an en banc hearing.
“Both sides get to present oral arguments, and there will be 12 judges who get to ask questions,” Drazin said. “I’m optimistic because the first step in granting an en banc hearing is six of the judges have to decide for whatever reason that they want to take another look at it.”
The state was granted a second chance at legalizing sports betting last October. The defendants seek to overturn an August decision in which two of three Third Circuit Court of Appeals judges ruled that New Jersey’s 2014 law deregulating sports wagering violates federal law. The case pits the defendants — who include the New Jersey Racing Commission, the thoroughbred horsemen and the New Jersey Sports and Exposition Authority — against the four major professional sports leagues and the National Collegiate Athletic Association (NCAA).
An en banc hearing means that instead of the traditional three-judge panel, every judge of the Third Circuit has the opportunity to hear the case.
“So that means at this juncture it’s rare to get an en banc hearing, so it is a very unusual set of circumstances that the court even agrees to hear you,” Drazin said. “So that means to me at least that they want to take another look at it. That doesn’t guarantee a win, but I’m optimistic because i think the merits of our case is good.”
Drazin said at least seven judges must side with the state for the appeal to be successful. He also said there is no deadline for a decision, but he expects one within 60 to 90 days of the hearing.
Just days after Gov. Chris Christie signed a bill into law in 2014 allowing sports wagering, the four major pro sports leagues, Major League Baseball, National Football League, National Basketball Association and National Hockey League, and the NCAA filed suit to stop Monmouth Park from accepting wagers on sporting events. On Nov. 21, 2014, a federal judge upheld the federal ban on sports wagering, leading to the state’s appeal to the Third Circuit.
The Third Circuit also shot down a 2012 law legalizing sports betting with both rulings claiming the laws violated the Professional and Amateur Sports Protection Act, which bars sports betting in all but four states.
Monmouth Park’s development plans — including an indoor water park, hotel and other amenities — are tied to the additional revenues projected from sports betting.
Drazin has estimated that $1 billion would be wagered each year at Monmouth Park if sports betting were legalized. That could net $75 million in annual revenue for the racetrack, which is Oceanport’s largest taxpayer.
The federal government banned sports betting in 1992, and states were given a window of one year to legalize it. Only Nevada, Delaware, Montana and Oregon chose to do so.
Of the four states currently exempt, only Nevada has large-scale sports betting, while the other three states currently have limited wagering.