New Jersey will seek reimbursement from sports leagues for lost gambling revenue

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In 2014, the sports leagues successfully blocked New Jersey from offering wagering on sports. Now, New Jersey will be seeking reimbursement for the money it otherwise would have made.

Via Stephen Edelson of the Asbury Park Press, officials at Monmouth Park will file an application in federal court “seeking to recoup hundreds of millions of dollars” arising from the initially successful — but ultimately fruitless — effort to keep sports betting from happening.

At first blush, it seems like a stretch. The sports leagues didn’t improperly block New Jersey from engaging in sports wagering; instead, the sports leagues relied on a federal law that had been on the books for 22 years. And multiple federal courts agreed.

It was only when the United States Supreme Court — on a 6-3 vote — overturned the federal law that the sports leagues’ position was proven to be wrong. Thus, the sports leagues would seem to be no more legally responsible for the lost gambling earnings than the members of Congress who passed the bill, the President who signed it into law, or the various courts that had consistently upheld its legality and constitutionality.

This could simply be an effort by New Jersey to keep the sports leagues from now extending an open palm that hopes to be filled with an “integrity fee.” Instead of working with New Jersey in 2014 to allow everyone to make money, the sports leagues tried to keep anyone and everyone from generating revenue through gambling. It would be a bad look for the sports leagues to try to get a cut from New Jersey now; an effort to seek hundreds of millions in damages from the sports leagues could be the best way to get them to back off as New Jersey finalizes and launches its sports betting program.

6 responses to “New Jersey will seek reimbursement from sports leagues for lost gambling revenue

  1. All lost income is speculative and the law wasn’t overturned until this week. This case will get thrown out.

    New Jersey legalized casinos decades ago and spent more than they took in and became broke and increased taxes. They will find a way to screw this up too. Bet on it.

  2. Ahhh … screwing it up is being generous, the money goes to the people who have the connections to get the money. Taxes … pffft. let them eat cake.

  3. This is just the State Of New Jersey turning the tables on the sports leagues by filing frivolous legal claims that the leagues will have to spend time, effort, and money getting thrown out. It is a pure middle finger from the people of NJ to all of the sanctimonious blow hards who kept them from exercising their free will for all of these years.

    And as a 15 year NJ resident, I love it.

  4. NJ has the 2nd highest tax burden in the country as is still bankrupt. And Atlantic City has generated hundreds of millions in tax revenue since the casinos opened and the town is still a dump. It is a safe bet that the politicians will screw this up too.

  5. “Instead of working with New Jersey in 2014 to allow everyone to make money, the sports leagues tried to keep anyone and everyone from generating revenue through gambling.”

    So it was the sports leagues fault after-all.

  6. There is more to it than this article states. The Press reported that at that time, the leagues were required to post a $3.4-million bond, which the court deemed to be Monmouth’s revenue losses for a month while the temporary restraining order was in effect.

    This was temporary restraining order and N.J. was right in saying the Federal Law doesn’t apply. This was a law, this was the NFL stopping Monmouth Park from taking bets.

    I bet this gets settle for at least $50M+

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