Written by Darren Heitner at Forbes.com
The State of New Jersey has fought for years to establish a sports betting scheme that would allow it to bring in more money for its troubled budget and provide a boost to its struggling casino industry. Each effort has been shot down, with the NCAA and the “Big Four” American professional sports leagues (NFL, MLB, NHL and NBA) claiming that allowing New Jersey such an exception would be a blatant violation of the Professional and Amateur Sports Protection Act of 1992 (“PASPA”), which bans states from offering any form of sports betting to individuals within their borders. The one exception among the U.S. states that is allowed a sweeping form of sports betting is Nevada, as it was grandfathered in when PASPA was passed.
There may finally be hope for New Jersey and others states that seek to implement a sports wagering system. This Wednesday, February 17, the Third Circuit Court of Appeals will rehear New Jersey’s case as to why it believes it should be able to permit casinos and racetracks within the state to offer sports betting at such venues. A majority of judges in the Third Circuit were required to vote for a rehearing in order for it to be granted, which is a promising sign for New Jersey in its ongoing quest to essentially circumvent PASPA.
Why is the Third Circuit’s rehearing so important?
Rehearings are extremely rare; circuit courts of appeal are reluctant to grant such requests. By way of example, in 2006 a total of 1,028 motions for rehearing were filed in the Fourth District Court of Appeals and only twenty-one of them were granted. That makes the granting of New Jersey’s case a special exception to the rule and may be read as a positive sign as to the likelihood of success on the merits of the state’s argument.
