NFL fighting N.J. plan to legalize sports betting

Tom Bell

Tuesday, May 4, 2004 | 11:07 a.m.

TRENTON, N.J. -- Officials from Atlantic City casinos enthusiastically supported the idea of sports betting in New Jersey, but an NFL representative told an Assembly committee Monday that legalizing gambling on games would be a mistake.

NFL attorney Jay Moyer urged lawmakers to drop their pursuit of bringing sports betting to Atlantic City because the move would encourage state residents to gamble and change the nature of how fans watch games.

"It would create a pervasive climate of suspicion about any controversial play in a game," Moyer said. "It would send two very bad messages. One is that anything goes when it comes to raising revenues and, two, that gambling and sports are natural partners."

New Jersey officials are exploring the possibility of challenging a federal law that prohibits most states from allowing betting on sports. Assemblyman Jeff Van Drew, D-Cape May, said recent U.S. Supreme Court rulings involving interstate commerce would seem to offer hope to New Jersey.

"It does not seem implausible that the federal law is at least susceptible to a legal challenge," said Van Drew, the chairman of the Assembly Tourism and Gaming Committee.

"If this committee is convinced that sports gambling will have a positive impact on Atlantic City and our state as a whole we need to pursue every possible option to make it a reality in New Jersey."

Some lawmakers believe the increased revenue from sports betting would boost state coffers and make Atlantic City more attractive as a tourist destination. They said that's important because a growing number of states now have casino gambling and others are considering it.

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.

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.

Joseph Lupo, vice president of operations for the Borgata Hotel Casino & Spa in Atlantic City, said the state was missing out on a lot of revenue by not allowing sports wagering.

"The fact of the matter is that sports betting already exists in New Jersey," Lupo said.

He said that those who want to bet on NFL games or other sporting events simply call illegal bookmakers or go onto Internet gambling Web sites.

Lupo said he believed that Atlantic City casinos would bring in more than Las Vegas sports books, where nearly $2 billion was wagered last year.

He said Atlantic City suffers because it can't generate the buzz that Las Vegas does on big weekends like that of the Super Bowl because of the lack of sports betting.

Rachel Bogatin, vice president of casino operations at the Atlantic City Hilton, agreed. She said those who are new to Atlantic City often ask about sports betting.

"One of the first things out of people's mouths is, 'Do you have a sports book?' " Bogatin said.

Lupo told lawmakers that this state has a leg up on others that would consider sports betting at casinos because New Jersey already has a strong regulatory system in place.

But Moyer said no state can ensure that problems won't develop because of sports gambling. He cited Pete Rose's admitted gambling and other wagering scandals in professional and college sports.

After his testimony, Moyer was asked if part of the popularity of the NFL and its high television ratings was due to the large number of people who bet on games even if it's just in office pools.

"I can't prove that, but I can't deny," he said. "On the margins maybe it makes it a little bit higher, but if we had to make a trade-off, we would."