NJ loses sports betting case, lodges appeal

Posted on March 1, 2013 by r.weston

State files appeal with Third Circuit US Court of Appeals after sports leagues and DoJ victory

New Jersey has been dealt a blow in its bid to legalise sports betting after federal judge Michael Shipp granted a permanent injunction against the state.

The state has already filed an appeal with the Third Circuit US Court of Appeals as part of a case which could yet go all the way to the Supreme Court as Governor Chris Christie seeks to challenge the Paspa federal law prohibiting all states from offering sports betting except Nevada, Delaware, Montana and Oregon.

The permanence of yesterday’s injunction is due to its enactment of a sports wagering law last year, in violation of federal law, although no charges will be made against the defendants representing New Jersey.

In an opinion, Shipp wrote: “Although some of the questions raised in this case are novel, judicial intervention is generally unwarranted no matter how unwise a court considers a policy decision of the legislative branch. As such, to the extent the people of New Jersey disagree with PASPA, their remedy is not through passage of a state law or through the judiciary, but through the repeal or amendment of Paspa in Congress.”

In January, the US Department of Justice joined the lawsuit filed by the National Collegiate Athletic Association along with the National Basketball Association, the Major League Baseball, the National Football League and the National Hockey League.

Last month, two New Jersey Congressmen introduced sports betting bills in Congress. Frank Pallone’s bill would exclude New Jersey from Paspa, while Frank LoBiondo’s bill would give all states until 1 January 2016 to legalise sports betting.

Betfair TVG seals NJ online horseracing contract

Posted on March 1, 2013 by r.weston

Sportech to remain totalisator operator – TVG to provide betting platform for 4NJBets

TVG-owned Betfair has won the contract to run the platform for New Jersey’s customer-facing online horserace betting site 4NJBets.com, previously run by Sportech.

It is understood that Sportech will keep its role as the totalisator operator, registering the wagers and dividing the pay-outs.

TVG was licensed in the state by the New Jersey Racing Commission on Wednesday and selected to run 4NJBets by Darby Development, the Monmouth Park management company which also runs the state’s pari-mutuel horseracing industry on behalf of the New Jersey Sports and Exposition Authority.

Stephen Burn, president and CEO of Betfair TVG, said of the deal: “TVG has a long history of working closely with New Jersey racing through its television network. Now, we have an opportunity to use all our resources, including the online wagering platform, to help New Jersey racing have a long-term sustainable future.”

The contract comes into effect today and as part of the agreement, the phone bank for account wagering is to be relocated from the Meadowlands Racetrack to Monmouth Park.

Governor Chris Christie signed exchange wagering legislation into law in 2011, but the New Jersey Racing Commission is yet to produce formal regulations, as is the case in California, where Betfair TVG also operates.

In January Christie also signed into law a bill which allows racegoers to place bets and collect their winnings on mobile devices at the state’s racetracks.

New Jersey has suffered a major setback in its bid to offer legalised sports betting though after federal judge Michael Shipp yesterday granted a permanent injunction barring the state from offering it, as well as a summary judgement.

Shipp wrote in an opinion: “Although some of the questions raised in this case are novel, judicial intervention is generally unwarranted no matter how unwise a court considers a policy decision of the legislative branch.”

It is now likely that New Jersey will take the case to the 3^rd US Circuit Court of Appeals.

NJ sports betting verdict expected this month

Posted on February 15, 2013 by r.weston

Prosecution and defence give arguments to federal judge – new sports betting bills introduced in Congress

US district judge Michael Shipp has said he hopes to decide on the New Jersey sports betting case within two weeks, although the likelihood remains that the case would then be appealed to higher courts.

In Trenton yesterday, during nearly three hours of arguments for and against the state’s proposals to offer sports betting, former US solicitor general Ted Olson argued on behalf of New Jersey that the federal Paspa 1992 ban on sports betting violates the commerce clause of the constitution and affects the Garden State’s sovereignty.

Olson said to Shipp: “The government, through Paspa, has chosen to thrust the unwelcome burden of regulating sports gambling on the states. If it isn’t going to do so, it can’t instruct the states not to do it or else abandon it to Nevada or organised crime.”

Sports lawyer Jeffrey Mishkin, representing the prosecution – US attorney Paul Fishman and several professional sports leagues – said that Paspa does not overrule state legislature authority because it requires no enacting laws.

Mishkin said: “The language of [the law] does not require or compel the state of New Jersey to do anything. It forbids conduct, it does not require conduct.”

Last month, the US Department of Justice joined the lawsuit filed by the National Collegiate Athletic Association along with the National Basketball Association, the Major League Baseball, the National Football League and the National Hockey League.

New Jersey’s plans to permit sports betting were first announced last July following an announcement by Governor Chris Christie (pictured) about his intention to challenge Paspa to allow sports betting at Atlantic City’s casinos and race tracks. Paspa prohibits all states from offering sports betting except Nevada, Delaware, Montana and Oregon.

Although Shipp plans to make a decision before the end of the month, it is probable that the case would then go to the 3^rd Circuit Court of Appeals and maybe even the Supreme Court.

He said: “I’m sure this is not your last stop along the way.”

Meanwhile, two New Jersey Congressmen have introduced sports betting bills in Congress. Frank Pallone’s bill would exclude New Jersey from Paspa, while Frank LoBiondo’s bill would give all states until 1 January 2016 to legalise sports betting.

He told the Press of Atlantic City: “It would be nearly impossible to pass federal legislation if it is perceived as New Jersey versus the 45 other states. I firmly believe the best legislative strategy for actually accomplishing our shared goal is to give states another opportunity to provide sports betting within their borders.”

DoJ wades into New Jersey sports betting case

Posted on January 23, 2013 by t.washington

Department of Justice files notice that it will join sports leagues in attempting to block legal sports betting in the Garden State

New Jersey’s plans to legalise sports betting suffered a setback yesterday as the US Department of Justice joined a lawsuit filed by sports leagues aimed at blocking such regulation.

The DoJ claims it is intervening “for the purpose of defending the constitutional challenges to the Professional and Amateur Sports Protection Act (Paspa)”, which since 1992 has permitted sports betting in only four states: Nevada, Montana, Oregon and Delaware.

Christie said at the time the regulations his administration issued were not intended to overturn the ban, adding he believed that if the move was opposed at federal level the state would win on constitutional grounds. “If someone wants to stop us, then let them try to stop us,” he said. “Am I expecting there may be legal action taken against us to prevent it? Yes. But I have every confidence we’re going to be successful.”

The proposals immediately attracted strong opposition from the National Collegiate Athletic Association (NCAA) along with the National Basketball Association, the Major League Baseball, the National Football League and the National Hockey League.

The leagues and associations argued the plans violate federal law and would harm the integrity of the sports, filing a lawsuit which stated: “This is an action challenging New Jersey’s plan to sponsor, operate, advertise, promote, license, and authorise gambling on amateur and professional sports, in clear and flagrant violation of federal law.”

In yesterday’s filing at a federal district court in state capital Trenton, the DoJ asked for until 1 February to file responses to the state’s constitutional challenges. US District Court Judge Michael A. Shipp has scheduled arguments for 14 February.

However Joe Brennan Jr, director at the Interactive Media Entertainment and Gaming Association (iMEGA), argued the DoJ’s intervention would not alter New Jersey’s plans. “While the decision by the US Department of Justice is disappointing, it has little bearing on the heart of the matter – that this law preventing New Jersey from regulating sports betting is unconstitutional,” he said.

“New Jersey only wants to do what Nevada and Delaware are free to do – regulate and tax sports betting – to save Atlantic City’s casinos and the state’s race tracks. It is confusing why the Obama administration would oppose a law approved in New Jersey by a 2-to-1 margin in a reliable “blue state”. And though it’s not likely that US Attorney-General Eric Holder made this decision based on his recent work as counsel and crisis manager for the NFL, it is legitimate to ask why the DOJ would side with billionaire team owners over the voters of New Jersey,” added Brennan.

New Jersey egaming bill makes progress

Posted on December 5, 2012 by t.washington

Senator Lesniak’s A2578 could face full Assembly and Senate vote before Christmas

New Jersey’s online gambling bill could be passed before the end of the year after an amended version was approved in the state Assembly on Tuesday.

According to NorthJersey.com, Senator Raymond Lesniak, Bill A2578’s primary sponsor, predicts the bill will face a vote by the full Assembly on 17 December and a Senate vote by 20 December. It would then be sent to Governor Chris Christie’s desk for final approval.

“It’s still not too late for Atlantic City to become the Silicon Valley of internet gaming,” Lesniak said.

The bill would allow Atlantic City casinos to offer a full range of online gambling, including casino games, in a move which directly contradicts Nevada Senator Harry Reid’s poker-only federal bill.

Lesniak had hoped the bill would be passed before the end of New Jersey’s previous legislative session which ended in July. However it was delayed until autumn amid uncertainty over whether state Governor Christie would put his name to the regulation.

“Because of Christie’s ambivalence on it and him sending messages that he doesn’t want it to go through until the fall, we’re having trouble getting enough Democratic votes to pass it because of opposition from the racing industry,” Lesniak said at the time.

New Jersey missed the chance to become the first US state to regulate online gambling in 2011 when Christie refused to pass Lesniak’s S490 bill.

Since then, Nevada has passed online poker legislation and begun issuing licences to operators and service providers with real-money play expected early in 2013, while Delaware has also approved the regulated of online poker and casino games.

Lesniak has long argued that regulation of egaming would help salvage Atlantic City’s casinos which are facing declining revenues. Just six years ago, the city achieved its best gross gaming revenue since gambling was legalised in New Jersey, but profits have decreased ever since and last year the casinos recorded their worst results since 1993.

New Jersey casinos delay mobile betting entry

Posted on October 10, 2012 by r.weston

Regulations came into effect on Monday but casinos play waiting game ahead of online decision later this year

None of Atlantic City’s 12 casinos have applied to host mobile betting ahead of the state Governor deciding whether or not to regulate online gambling, the Division of Gaming Enforcement (DGE) has confirmed.

The state’s mobile gaming regulations came into force on Monday and will remain in effect for 270 days, while a proposal for final regulations will be published by the DGE within 60 days, however of the eight brands that are based in New Jersey not one has applied to operate any form of mobile gambling DGE spokeswoman Lisa Spengler told The Associated Press.

New Jersey Governor Chris Christie signed the original bill, S 1323, into law in August allowing Atlantic City casinos to apply for permission to allow their customers to play and gamble on mobile devices anywhere within their properties, with the exception of parking areas. A similar law has been active in Nevada since 2006.

In a statement, DGE director David Rebuck said of the mobile regulations: “We are looking forward to having Atlantic City casinos take advantage of mobile gaming and we see these regulations as one more step in the expansion of gaming opportunities afforded to Atlantic City customers.”

New Jersey Senator Raymond Lesniak still hopes to see his egaming bill passed in the state, but his proposal is currently on hold until after the Presidential election on 6 November. Separately in July, New Jersey politicians released a series of proposed sports betting regulations after Christie confirmed plans to challenge the federal ban on sports betting, but sports groups have since filed a lawsuit in an attempt to block the audacious attempt.

Sports groups file lawsuit to block New Jersey sports betting

Posted on August 8, 2012 by t.washington

Five associations sue state officials – claim proposed gambling bill would “threaten integrity” of sports

The National Collegiate Athletic Association (NCAA) has joined forces with four major professional sports to file a lawsuit in an attempt to block New Jersey politicians from allowing sports betting at the state’s 12 casinos and race tracks.

The National Basketball Association, the Major League Baseball, the National Football League and the National Hockey League and the NCAA filed the suit on Tuesday. The associations argue that New Jersey Governor Chris Christie’s (pictured) sports betting proposals violate the federal Professional and Amateur Sports Protection Act of 1992 (Paspa), which permits sports betting in only four states including Nevada, Montana, Oregon and Delaware.

The lawsuit states: “This is an action challenging New Jersey’s plan to sponsor, operate, advertise, promote, license, and authorise gambling on amateur and professional sports, in clear and flagrant violation of federal law.”

“Gambling on amateur and professional sports threatens the integrity of those sports and is fundamentally at odds with the principle . . . that the outcomes of collegiate and professional athletic contests must be determined . . . solely on the basis of honest athletic competition.”

Senator Raymond Lesniak has been working to overturn New Jersey’s exclusion from sports betting regulation since early 2009 and said he welcomes the lawsuit. Lesniak said the sooner the lawsuit is overturned “the quicker we’ll be able to start sports betting in New Jersey.”
Christie wishes to legalise sports betting to help reinvigorate the city’s ailing land-based gambling industry. He signed a sports betting bill in January, but it was believed that before implementing it, the state would try to overturn Paspa. Christie, however said the regulations his administration would issue next week are not intended to overturn this ban.

“If someone wants to stop us, then let them try to stop us,” Christie told reporters in May. “Am I expecting there may be legal action taken against us to prevent it? Yes. But I have every confidence we’re going to be successful.”

David Deitch, attorney with Washington D.C. based Ifrah Law, said the sports leagues would struggle to get a judge to give them a preliminary injunction because they will not be able to prove they will suffer “irreparable harm” if New Jersey is permitted to authorise sports betting.

“If the many thousands of dollars bet on sporting contests already in Las Vegas and elsewhere is acceptable, how is the addition of sports betting in New Jersey going to somehow undermine the integrity of sports?” he said.

“The sports leagues’ complaint also faces a serious obstacle in that the enforcement of Paspa here would violate the US Constitution – both because of its unequal treatment of different states and the way in which it impermissibly intrudes into the powers that the Constitution reserves to the individual states.”

Hills names the Plaza as flagship Vegas venue

Posted on August 3, 2012 by t.washington

Deal includes renovation of prestigious race and sportsbook venue

William Hill has continued its push to establish itself as a major player in Nevada after signing a deal to make Plaza Hotel and Casino its flagship venue in downtown Las Vegas.

The deal spawns from a long-term relationship between the Plaza and Brandywine Bookmaking – one of the three Nevada-facing sportsbooks which William Hill acquired in June after being awarded a gaming licence in the state. Brandywine, whose former chief executive Joe Asher is now William Hill US CEO, has operated a sports betting facility at the Plaza since 2008.

Under the terms of the deal William Hill will offer Plaza customers access to its mobile sports betting app for mobile devices, while the venue will also go major renovations including new sports video displays and a redesign of the adjacent bar area.

Asher said of the deal: “As the oldest continuously operating sports book in Las Vegas, the book at the Plaza has a rich history and terrific reputation as a cornerstone of the property since 1975. The Plaza race and sports book is known for its terrific customer service and wagering product. We look forward to enhancing the experience with an even better wagering product and great technology.”

Hills also acquired American Wagering and Club Cal Neva in June, as the British bookmaker looks to gain a foothold in the US market. The company agreed to buy the three sportsbook operators for a total of US$55m in April last year.

Since being awarded a gaming licence by Nevada’s Gaming Commission last month, Hills has appointed a new executive team to run its US operations, with Asher’s appointment being followed by the arrival of Nevada veteran and former director of bookmaking operations at Cal Neva Nick Bogdanovich as director of bookmaking.

Scientific Games acquires online betting provider Parspro

Posted on July 23, 2012 by t.washington

Deal sees US lottery systems specialist able to offer scalable sports betting solution to clients

Scientific Games has acquired the assets of Icelandic online and mobile sports betting solutions provider Parspro for an undisclosed amount.

The deal will see the US lottery specialist integrate Parspro’s scalable system, which provides lotteries and sportsbook operators with the ability to launch and run an online betting site including software, state-of-the-art hosting, traditional sports wagering and live betting propositions.

Parspro’s assets also include a full-service internet platform, integrating casino, poker and other gaming content from multiple third-party providers.

For Scientific Games the move represents an attempt to diversify its services after the firm’s chief executive Lorne Weil revealed in January that the Nasdaq-listed company was in talks with its customers about how best to take advantage of online opportunities. At the time he explained the company was “expanding [its] portfolio of internet solutions and content to better meet [its] customers’ needs”, with the intention of taking advantage of December’s Department of Justice opinion on the Wire Act.

Bill Huntley, president of Lottery Systems for Scientific Games, said: “Given the rapidly liberalising regulatory landscape, we believe sports wagering is a significant opportunity for regulated operators in Europe and other jurisdictions over the next few years. Parspro’s experienced development team, who will be joining Scientific Games, and its comprehensive risk management tools and strong track record will be key advantages for Scientific Games’ existing customers as well as potential new lottery and commercial customers.”

Sigurdur Baldursson, founder and chief executive of Parspro, added: “Teaming up with Scientific Games, a global leader in the lottery and gaming industry, is a win-win for our company and our customers. Scientific Games has integrated our sports betting interactive system with their venue-based lottery system, which supports nearly 4,000 retail points of sale in Norway for Norsk Tipping.”

In June Parspro launched a sports betting site for Cirsa in the newly-regulated Spanish market. The operator went live with an online and mobile sportsbook, featuring pre-match and in-play betting, making it the first native land-based operator to launch an online offering in the market.

Online sports betting goes live in British Columbia

Posted on July 9, 2012 by t.washington

Launch will see residents able to bet in-play for first time

The British Columbia Lottery Corporation (BCLC) has launched online sports betting on its online channel PlayNow.com, a move which will see in-play wagering offered by a North American lottery company for the first time.

Irish bookmaker Paddy Power is providing the odds for the website, published in real time on the OpenBet platform, having signed a three year agreement in 2011 to supply product, pricing and risk management services to its online sports betting business from the summer of 2012.

Patrick Kennedy, Paddy Power chief executive said of the launch: “Today marks an important milestone for BCLC and for British Columbia sports fans. Ice hockey punters will for the first time be able to bet in running during games on PlayNow.com, which will add to their enjoyment of NHL games, as well as baseball, tennis and a wide range of other sports.

“We are delighted to support BCLC in this exciting venture through our pricing, risk management and operational services based on expertise and product development originating from Ireland.”

David Loveday, CEO at OpenBet, added: “After helping BCLC become the first jurisdiction in North America to offer legal online casino games in 2010, we are excited to be involved in the next phase of their offering. BCLC wanted a software provider that allowed them the flexibility to upgrade their offering as regulation developed and we have provided them with the support and expertise needed to do just that”.

BCLC is the only operator permitted under Canadian law to offer sports betting in British Columbia.

The state-owned operator has led the way in egaming in Canada, having exported its expertise to the province of Manitoba earlier this year. BCLC, in conjunction with OpenBet, is designing and developing the new egaming site for Manitoba as well as providing testing services.

In 2010, PlayNow.com became the first government-run online casino in North America offering sports betting, bingo and casino and lottery games.