Assembly panel OKs sports betting measure

Friday, Dec. 3, 2004 | 11:12 a.m.

TRENTON, N.J. -- A measure that would allow betting on professional sports at Atlantic City's casinos was approved Thursday by the Assembly Tourism and Gaming Committee, but even the bill's sponsor conceded that its future was uncertain.

Bill sponsor Assemblyman Jeff Van Drew, D-Cape May, said he thought there was less than a 50 percent chance sports betting would ever come to the state's gambling resort, but that an effort should be made due to increased gaming competition.

Van Drew said sports gambling would be a powerful boost to Atlantic City, which could be hurt by the slot machines being placed at racetracks in neighboring states.

"As competition grows it is important, it is paramount that we ensure the revenue stream continues to be there," Van Drew said.

Sports betting is banned by federal law in all but several states, but supporters of the measure believe New Jersey could successfully challenge the ban in court.

A law professor from Rutgers University told the panel during testimony that he did not agree. Bernard Bell, associate dean for faculty at Rutgers Law School Newark, said the federal law does not appear vulnerable to a challenge.

Bell testified on behalf of the NFL and NBA. Both leagues adamantly oppose sports betting in New Jersey.

An attorney for the NFL said other legal analysis supported Bell's opinion.

"Moving this bill forward is likely to be the first step on a long, hard and costly road that leads you nowhere," said Jay Moyer, special counsel to the NFL.

The measure now goes to the Assembly Appropriations Committee for consideration.

Acting Gov. Richard J. Codey has not taken a position on the sports betting bill and has not directed the attorney general to challenge the federal ban.

Assembly Speaker Albio Sires, D-Hudson, previously said he supports sports betting to help ease what may be a $4 billion gap in the next state budget. The proposed bill would raise $92.5 million annually for various programs by taxing an estimated $1 billion in bets.

The measure would need approval by voters. Bets could only be made in person at a casino, and no wagers would be allowed on college or other amateur sports events.

Federal law allows sports betting in Nevada, Oregon, Delaware and Montana, but only the first two states offer it. Nevada has full-service sports books, while Oregon has a state-run pro football pool during the season. Almost $2 billion was bet on sports in Nevada last year.

Assemblyman Louis Greenwald, D-Camden, who testified in support of sports betting, said it was ridiculous not to recognize that sports fans in the state already bet on games even though many do so through illegal bookmakers.

"Clearly we have to recognize that there is a revenue stream," Greenwald said. "People are wagering money."

Opponents countered that state-sanctioned sports betting would encourage younger gamblers.

"Because teenage boys and college age students are particularly drawn to sports betting, adding sports betting to casinos will increase the numbers of underage casino gamblers and in turn increase the numbers of youth who suffer the serious consequences of a gambling problem," said Valerie Lorenz, executive director of the Compulsive Gambling Center.

The federal government gave New Jersey the opportunity to legalize sports betting in 1994, but proponents could not gather enough support and the issue never made it to the ballot for voter approval.