Trenton, New Jersey, USA: New Jersey Governor Philip Murphy has signed Assembly Bill 4111 just days after it passed both houses of the state legislature, legalizing sports gambling in the state effective, tomorrow, Thursday.
Starting Thursday, the state of New Jersey will implement sports betting in licensed casinos and racetracks.
“Today, we’re finally making the dream of legalized sports betting a reality for New Jersey. I’m thrilled to sign Assembly Bill 4111 because it means that our casinos in Atlantic City and our racetracks throughout our state can attract new business and new fans, boosting their own long-term financial prospects. This is the right move for New Jersey and it will strengthen our economy.” Governor Philip Murphy said in an announcement.
New Jersey expects to raise approximately $13 million in the first full year from sports gambling according to Governor Philip Murphy .
The governor’s signature marks the end of a six-year legal battle of New Jersey fighting for sports betting starting in 2012
EARLIER: New Jersey Lawmakers OK Sports Gambling Legalization – Assembly Bill 1441 passed first, then identical Senate Bill 2602 was passed as the New Jersey state legislature approved the legalization of sports gambling in the state on Thursday – approximately three weeks after the U.S. Supreme Court ruled in favor of the state in the case styled Murphy, Governor of New Jersey, et al. Vs. National Collegiate Athletic Assn. Et al.
On May 14, the Supreme Court #SCOTUS struck down a federal law – The Professional and Amateur Sports Protection Act (PASPA) – that prevented states from legalizing sports gambling.
According to the bill, casinos with horse racing and sports betting will be taxed at 8.5 percent for horse racing, subject to a 1.25 percent increase on revenue received if there are both types of betting. Internet-based sports betting will be taxed at 13 percent.
The bill bans casinos and their executives who own professional sports teams from offering sports betting, but according to the Washington Post [report], this is mostly theoretical, because a number of duel owners will be exempt.
Now, the bill waits for a signature from Governor Philip Murphy [official website]. The governor has not said publicly if he would sign the bill into law.
The passage marks the end of a six-year legal battle of New Jersey fighting for sports betting starting in 2012 with a complaint from national sports teams.
It also comes barely a day after Delaware on Tuesday became the the second state after Las Vegas to legalize full-scale sports gambling, with the state governor first in line to lay down money on a single game – taking advantage of a recent U.S. Supreme Court decision.
Delaware Governor John Carney put $10 on the Phillies game Tuesday night and it paid off. The Phillies ended up beating the Cubs 6 to 1.
The big board at Delaware Park Racetrack and Casino was a veritable potpourri of wagering options. Everything from MLB to the NBA Finals to soccer was an option. The racetrack at Delaware Park has been around since 1937, but Tuesday was the dawn of a new day in the first state.
Full scale legalized sports betting (gambling) debuted in Delaware at 1:30 p.m. In recent years, you could place a parlay bet (minimal three teams) during the NFL season. Now, take your pick. Straight, parlay, round robin, teaser, future. It’s all on the table. Much to the delight of the betting public who showed up ready to lay down their cash for a little action.
The crowd started filtering around 11 a.m. By 1 p.m., the place was buzzing, and the masses were itching for some legalized wagering. For many, Day 1 was an education in the world of sports gambling. “How To Bet Guide’s” were handed out at Delaware Park as some novices attempted to decipher everything from futures to money lines to reverses to vigorish.
The overriding sentiment from people on hand was, they were happy to not have the stigma that is attached by some to illegal gambling. Show up, lay down your money, win or lose, pretty cut and dry. You had everyone from the professional gambler throwing down thousands of dollars to the first-timer dropping a 10-spot on their beloved team.
On May 14, the Supreme Court #SCOTUS struck down a federal law that prevented states from legalizing sports gambling. The justices ruled that Congress can ban sports betting itself but said it can’t mandate what state Legislatures do or don’t pass.
While a number of states were poised to take advantage of the change in the law, Delaware was the first across the finish line.
That makes Delaware the second state with fully legal sports gambling, following Nevada, which had legalized the practice before the federal law was passed in 1992.
Sports betting in the US is immensely popular. Nevada sports books handled over $4 billion in bets in 2015. In addition, it is estimated that nearly $200 billion is bet illegally on sports annually with bookies and through online sports books based outside the US.
The reason for the financial disparity between legal and illegal betting is the fact that federal law makes Nevada the only state where single game sports betting is legal.
The 1992 Professional and Sports Betting Act (PASPA) prohibited sports betting but granted exceptions to states that had operated forms of sports betting before PASPA’s passage.
Nevada was the only state with single game sports betting, and when New Jersey failed to take advantage of a provision in PASPA giving them one year from the law’s effective date to adopt sports betting, PASPA essentially codified Nevada’s sports betting monopoly. The Supreme court changed that on May 14th in it’s ruling in Murphy, Governor of New Jersey, et al. V. National Collegiate Athletic Assn. Et al.