Leave it to New Jersey to pick a fight against the federal government.
Gov. Chris Christie announced Thursday the state's intention to defy a federal ban on sports betting in an attempt to reinvigorate Atlantic City. The Professional and Amateur Sports Protection Act, a federal law enacted in 1992, prohibits betting on sports games in all states except four: Nevada, Delaware, Oregon and Montana.
New Jersey had the opportunity to join this group but failed to approve sports betting before the determined deadline in 1991. However, this has not stopped proponents from trying to get the sports betting industry going in the garden state.
Last year residents voted to allow gambling on sports games by a 2-1 margin. Based on the vote, New Jersey's state legislature passed a law that would allow sports betting at the 12 casinos in Atlantic City as well as the state's four horse tracks.
Sports betting is a huge industry that supporters believe can revitalize Atlantic City and bring in billions of dollars in revenue for the state. An online gambling association, Interactive Media Entertainment & Gaming Association, estimates that nearly a half-trillion is spent on sports betting each year nationally, either legally or illegally.
A large percentage of bets are placed illegally with offshore Internet sites and bookmakers, and all the money goes untaxed.
Casino owners stand behind Christie but are hesitant to be the first to begin taking bets. "I love the idea of playing offense and having the federal government have to play defense against us," said Tony Rodio, president of Tropicana Entertainment, which owns the Tropicana Hotel in Atlantic City. "But I don't know who's going to want to be the first to open knowing they can shut you down. We'd need a lot more clarity before we invested lots of money in a sports book."
As for Christie, he expects there to be a fight, but believes New Jersey will come out on top. "Am I expecting there may be legal action taken against us to try to prevent it? Yes," Christie said. "But I have every confidence we're going to be successful."