Sports betting coming to Monmouth Park, as SCOTUS rules in favor of NJ

Stephen Edelson | Asbury Park Press

Show Caption Hide Caption NJ sports betting: Wagering legal in NJ on 'historic day' Monday’s favorable ruling by the U.S. Supreme Court paves the way to allow gambling on sporting events at racetracks and casinos in the state.

OCEANPORT - The seven-year legal battle is finally over, and sports betting is coming to New Jersey.

Monday’s favorable ruling by the U.S. Supreme Court paves the way to allow gambling on sporting events at racetracks and casinos in the state.



“I am thrilled to see the Supreme Court finally side with New Jersey and strike down the arbitrary ban on sports betting imposed by Congress decades ago,'' Gov. Phil Murphy said.

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“New Jersey has long been the lead advocate in fighting this inherently unequal law, and today’s ruling will finally allow for authorized facilities in New Jersey to take the same bets that are legal in other states in our country.

"Today’s victory would not have been possible without the incredible bipartisan effort from so many in our state, particularly former Gov. (Chris) Christie and former state Sen. (Ray) Lesniak. I look forward to working with the Legislature to enact a law authorizing and regulating sports betting in the very near future.”

For the cash-strapped thoroughbred track, which has pushed the fight since the beginning, the ruling comes just in a nick of time. Monmouth Park is poised to open a sports book within the next few weeks. Monmouth Park has spent $2 million to build and expand the William Hill Sports Bar so it can be converted quickly into a sports book.

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"This is the culmination of the hard-work and dedication of a large group of individuals, all of whom contributed to today’s victory and will undoubtedly contribute to our future success," said Dennis Drazin, chairman and CEO of Darby Development LLC, operators of Monmouth Park. "We started this fight back in 2012 and are grateful that the Supreme Court has recognized that we’ve been right all along. We can now shift our focus on commencing sports betting, which will be off and running at Monmouth Park as soon as possible.

"I congratulate all the stakeholders in this endeavor and their steadfast resolve in overturning this now unconstitutional law. I want to particularly thank Ray Lesniak, who has been on top of this issue since Day One and (former) Gov. Chris Christie for supporting this effort all along. And now that victory is in hand, I look forward to working with Gov. Phil Murphy, who has been a strong supporter of today’s ruling, on implementing sports betting."

The Supreme Court justices ruled 6-3 that the federal law that prohibits sports betting on single games outside Nevada and three other states is unconstitutional.

Sports betting could mean an annual windfall totaling as much as $25 million annually early on for the track. It would be a much-needed alternative revenue stream in its struggle to survive amid the rising tide of competition from tracks in neighboring states. Those enterprises are flush with casino-generated dollars used to supplement purses and operations.

"When I started this nobody gave me a snowball’s chance in hell," said Lesniak, who started the state's push to legalize sports betting. "I was criticized for trying nothing more than a Hail Mary pass, and today I completed it. It’s a great day for New Jersey."

Monmouth Park has been leased from the state by the New Jersey Thoroughbred Horsemen’s Association since 2012, when Christie effectively privatized the horse racing industry and eliminated annual subsidies from Atlantic City casinos, sending the industry into a financial tailspin.

William Hill, the British betting giant whose U.S. operation is based in Las Vegas, is Monmouth Park's partner in sports wagering. The two will split the proceeds, expected to be around $50 million annually.

Specifically, the high court ruled that PASPA, the Professional and Amateur Sports Protective Act that in 1992 made sports wagering on individual games illegal outside Nevada, was unconstitutional.

For Monmouth Park and the racing industry in the state, it's about survival, with 13,000 or so related jobs and more than $1 billion in positive economic impact generated annually at stake, in addition to the open space farms provide.

It all began in 2011, when New Jersey voters approved a referendum that amended the state constitution to allow for legislation to legalize sports gambling. The Legislature enacted a bill that would allow sports wagering at Atlantic City casinos and racetracks in the state.

On Oct. 17, 2014, Christie approved legislation that repealed PASPA. Monmouth Park prepared to begin accepting wagers on NFL games nine days later, but U.S. District Judge Michael Shipp issued a temporary restraining order at the request of the "leagues," a group comprised of the NFL, the NBA, the NHL, Major League Baseball and the NCAA, which has fought New Jersey on the issue from the start.

"My most heartfelt congratulations to the New Jersey Thoroughbred Horsemen's Association and all those who were willing to continue to stick their necks out in search of today’s ruling," Drazin said. "Their hard work will soon be rewarded, as will the people of New Jersey, who have supported sports betting for more than half a decade."

After several unfavorable rulings in the U.S. Third Circuit Court of Appeals, the U.S. Supreme Court finally decided to hear the case last year, with oral arguments given in December.

Since this all began, New Jersey has spent $9 million in legal fees, while Monmouth Park has spent more than $1 million.