Sunday, May 12, 2013

Other States File Legal Briefs in Support of New Jersey Sports Betting

The briefs regarding the appeal of the recent New Jersey sports betting court ruling are continuing to flow in.  NorthJersey.com reports that the attorney generals in four states, Virginia, West Virginia, Georgia and Kansas, filed amicus briefs in support of New Jersey's efforts to offer sports betting within the state.  The briefs were specific to mention that they did not take a position regarding the sports betting laws under dispute but attacked the US Government position and District Court opinion on sovereignty grounds.

This is an interesting argument.  It appears that this was studied beforehand and coordinated.  Obviously, these states think they have a very good argument on this point and don't want to cloud the issue with details specific to sports betting.

Their point was that by having Congress pick and choose what states can do what, it tramples on the sovereignty of the states.  More than that, the briefs attack the premise of the District Court judge that upheld the sports betting ban (which allow some states to offer sports betting but not others) due to the fact that Congress merely prohibited the states from performing an affirmative action in allowing sports betting.  The four states view this legal position as an error as this court ruling will allow Congress to infringe on state sovereignty by using the tactic of preventing states from performing actions like licensing and permitting as a means of control - an indirect method of federal control over state activity.

The blog puts forward a simple example regarding fishing licenses.  I am sure when the case is heard by the Court of Appeals, there will be better examples ready by the states.  Again, what I find interesting is that the states are very much avoiding the issue of sports betting.  They must feel the issue of federal vs. state sovereignty is quite strong and that the federal side will have difficulty countering.  The Court of Appeals will now more likely take this case under even more consideration as it is not now just a single state (New Jersey) wanting sports betting.  The court will need to decide a larger constitutional issue and if this argument is sufficient, the sports betting ban will have to fall as a natural consequence.

My view is that when this case is ultimately decided by the Supreme Court (the loser here will no doubt appeal), there will be constraints on Congress' actions that will ultimately allow each state to decide for themselves if they desire sports betting.  Nevada's sports betting monopoly days are likely coming to an end.

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