Sports Betting at Monmouth Park Weeks Away?

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OCEANPORT – State Senators Raymond J. Lesniak and Joseph M. Kyrillos Jr. aren’t wasting any time, nor is Monmouth Park, in moving forward with sports betting following actions made by the Christie Administration this week.
“It is in the very, very near future that sports wagering will be offered at Monmouth Park,” Dennis Drazin said in a prepared statement. Drazin, a Red Bank lawyer, is an advisor to the New Jersey Thoroughbred Horsemen’s Association and Darby Development LLC, which operates Monmouth Park.
As a practical matter, Drazin said, sports betting may be able to begin within 45 days because of recent legal developments.
Earlier this week, Christie and state Acting Attorney General John J. Hoffman took legal action as a way to circumvent state and federal prohibitions on racetracks and casinos operating professional sports betting rooms.
Kyrillos, R-Monmouth, and Lesniak, D-Union, said they will be introducing legislation that will bolster the governor and Hoffman’s position.
There is an Oct. 6 date in Federal District Court in Trenton for state representatives, including those from the governor’s office, and Drazin during which they will ask U.S. District Judge Michael A. Shipp to clarify his 2013 decision. That decision by-and-large struck down a state statute that would have allowed sports gambling at such venues as Monmouth Park and Atlantic City casinos, despite existing federal law that limits it to four states.
Shipp will likely also hear from those opposed to allowing gambling, specifically professional sports leagues.
While Shipp’s decision was upheld by the federal Third Circuit Court of Appeals, it seemed to give state officials some wiggle room to allow gambling to move forward, legislators and Drazin said.
Hoffman’s statewide directive says the gaming venues could have gambling rooms for professional sports betting without fear that state authorities would pursue criminal or civil action.
“We’re pleased to see the governor has not abandoned us on sports betting and is trying to find a way to make it happen,” Drazin told ***ITALThe Two River Times***END on Tuesday.
Lesniak and Kyrillos are co-sponsoring legislation that, Lesniak said, will repeal any existing state statute prohibiting sports gambling.
The bill is expected to be introduced Thursday, Sept. 18. “I expect to have this through both houses and on the governor’s desk by the end of the month,” and prior to the Oct. 6 court hearing, Lesniak said.
Lesniak’s earlier version of the legislation sailed through both the Senate and Assembly this summer. Christie, however, vetoed the bill, believing it wouldn’t pass federal legal muster.
“I expect this time the governor will sign it,” Lesniak said.
Earlier legislation and a voter referendum allowing sports gambling in New Jersey ran into a federal injunction when it was challenged by professional sports leagues, including the National Football League (NFL) and National Basketball Association (NBA). The leagues argued it violated federal law limiting sports betting to Nevada, Montana, Delaware and Oregon.
The ruling was upheld by the Third Circuit Court of Appeals. But, that ruling provided a window for the state with the court indicating New Jersey was free to repeal any law that required state licensing of sports betting operations. Getting the state out of the equation, could allow it to move forward.
“It’s a complicated threading of the federal statute,” but one that offers hope of allowing what could be a financial benefit to the state, Kyrillos said.
“Our fingers are crossed it’s the right remedy,” Kyrillos added. “It’s certainly something that could help Monmouth Park and, certainly, Atlantic City.”
An estimated $500 million a year is spent nationally on sports gambling, Drazin said. “And most of that illegally.”
Drazin also believes that as much as $1 billion a year, “conservatively,” could be spent on sports betting during the first year it’s permitted. That could net the racetrack a portion of $75 million it would have to share with its partner William Hill, a company that operates sports-betting rooms.
“I think it would have a high-income impact for the state” and for Monmouth Park, which continues to operate at a loss, and the entire region, Drazin said.
Drazin previously said getting this type of operation at Monmouth Park is vital to the track’s continued financial sustainability and its plan to bring additional attractions that will make the site a year-round destination.
Drazin and others have talked about constructing a concert venue, an IMAX movie theater and upscale restaurants on the track’s Oceanport Avenue property.