ASSEMBLY PASSES LEGALIZED SPORTS-BETTING BILL

ASSEMBLY PASSES LEGALIZED SPORTS-BETTING BILL
Measure Would Legalize Wagering on Professional Athletics

(TRENTON) - Legislation Assemblymen Nelson Albano, Louis Greenwald, John Burzichelli, and Paul Moriarty sponsored to pave the way for Atlantic City casinos to take bets on professional sporting contests was passed today by the General Assembly.

The Assembly's vote of 58-17 with one abstention comes four days after Super Bowl XLII, which gaming experts estimate drew upwards of $10 billion in wagers worldwide, including an anticipated $100 million in Las Vagas-based wagers alone.

"There are multiple dividends for New Jersey if sports gambling were to be provided at Atlantic City's casinos," said Albano (D-Cumberland/Atlantic/Cape May). "Atlantic City's casinos again lost out as bettors flocked to Las Vegas. We need to ensure Atlantic City stays on the cutting edge and has a competitive advantage against the new wave of gambling offerings in other states."

The sponsors said the sports betting legislation (A-1909) would help Atlantic City's casinos weather mounting gambling competition in other states and would help strengthen New Jersey's economy.

"Ever since its inception, Atlantic City's casinos have scored big for taxpayers, senior citizens, and residents with disabilities," said Greenwald (D-Camden). "Now, aggressive marketing campaigns from out-of-state gaming interests have become a real and present danger to Atlantic City. With one of the state's most important industries in the crosshairs, it is imperative that we seize this unique opportunity."

The lawmakers said the availability of legalized sports betting also would counteract illegal sports wagering enterprises that help finance other criminal activities in the state. In November, state Attorney General Anne Milgram announced the break-up of a $22 million illegal sports-betting ring operated out of a poker room at Atlantic City's Borgata Hotel Casino & Spa.

Among the 23 individuals charged in "Operation High Roller" were four men with ties to organized crime.

"Sports betting already exists in New Jersey, but only the criminals are enjoying the profits," said Burzichelli (D-Gloucester/Cumberland/Salem). "Legal, carefully regulated sports wagering would bolster both Atlantic City and the state. New Jersey should go all-in."

"Sports fans put billions of dollars on the line every year, regardless of its legality," said Moriarty (D-Gloucester/Camden). "A legal Atlantic City-based sports book would ensure bettors are not fleeced or put in harm's way."

The measure would allow New Jersey voters to decide whether the state should permit sports betting. Such a ballot question could appear on an election ballot as early as next November.

If approved by voters, licensed casinos would be able to accept in-person wagers solely on professional sports. Betting on amateur sports, such as collegiate football, would remain illegal. The bill would make the Casino Control Commission responsible for overseeing sports-betting activities.

In 1992, a federal law limiting sports gaming to Nevada was amended to give New Jersey and four other states an opportunity to approve sports betting, provided they acted prior to January 1, 1994. But the former Republican-controlled Assembly failed to put the question before voters in the November 1993 general election, and the deadline passed. As a result, Nevada, Oregon, Delaware, and Montana are the only states that legally can offer sports betting; only Nevada and Oregon actually provide such wagering.

"With the growth of out-of-state slots parlors and 'racinos', we should try to correct the mistake New Jersey made 15 years ago," said Albano. "Atlantic City needs to up the ante so it can remain the East Coast's premier gaming destination."

The legislators said New Jersey has "decent odds" for successfully challenging the federal law in court and having it ruled unconstitutional. They said the federal dictate infringes on states' rights and that the constitutionality of the federal law remains untested.

Officials estimate that gamblers wager as much as $400 billion on sports nationally each year in the United States. Final numbers on the total wagered in Las Vegas this past weekend have yet to be released, but gambling consultants expect the number to approach $100 million.  Last February, bettors in Nevada alone wagered $93.1 million on Super Bowl XLI.

"If New Jersey could tap into even a fraction of the national sports book, the state would could generate millions of dollars in new direct revenues and economic dividends from increased tourism," said Greenwald. "It wouldn't be a revenue avalanche, but the betting opportunity would certainly strengthen Atlantic City's marketability and gambling hand."

The assemblymen said the modest increase would help state programs that serve the elderly and people with disabilities.

 "New Jersey needs to look to new ways to retain its edge in the increasingly competitive gaming industry," said Burzichelli. "Legalized sports gaming could broaden Atlantic City's appeal."

"Atlantic City's building boom is transforming the city into a destination that will rival the world's great casino resorts," said Moriarty. "The least we can do is give Atlantic City the missing piece it needs to provide a complete gaming experience."

The bill now heads to the Senate for further consideration.

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