New Jersey gambling proponents are hoping that statewide referendums held on November 8th could give Atlantic City a piece of the lucrative sport betting industry, and infuse a potential $200 million a year into local casinos.
If the referendum is approved, the law could be changed in the New Jersey Constitution to allow lawmakers to give the green light to sports betting. These laws will be subject to the repeal of the current federal law that makes sports betting illegal in all but four states.
The federal law was challenged by Senator Raymond Lesniak in 2009, but he had his lawsuit thrown out. Nevertheless, it is believed that if the referendum question passes, and New Jersey officials pass legislation based on the public question, the federal obstacles won’t be difficult to overcome.
Prof. I Nelson Rose, gambling expert and commentator said: “If the referendum question wins, the suit will be revived and will probably succeed. After all, it makes no sense to say that the law should protect professional and amateur sports teams except in Nevada, Delaware, Oregon and Montana.”
He added: “It also violates the historical division of powers to say the federal government can prevent a state from changing its public policy toward gambling.”
New Jersey notes year after year how lucrative the sports betting industry can be for states such as Nevada. This year’s Super Bowl brought in wagers of around $87.5 million, with the same amount also spent on non-gambling items such as hotel rooms, shows and meals.
Proponents of Lesniak’s bill say that sports betting would definitely boost Atlantic City’s gambling establishments, which have seen a 30% drop in revenue since 2006.
“Legalized sports betting will attract more tourists to visit our city and enjoy our world-class entertainment, thriving restaurant industry, brand-name retail shopping, and famous Boardwalk,” said Robert Griffin, president of the Casino Association of New Jersey. “Sports betting will allow Atlantic City to better compete, grow, and reinvest in the region.”
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