Hopes were crushed when Federal district Judge Michael Shipp awarded the US national sports leagues a temporary injunction against the recently passed New Jersey law this Friday, which would allow gambling licensees in the state to offer sports betting. Judge Shipp studied submissions by the NFL, the NBA, the NHL, Major League Baseball and the NCAA, along with a response from the state, before issuing the temporary restraining order. He concluded that major sports leagues had successfully shown they would be irreparably harmed if New Jersey's casinos and racetracks were permitted to allow sports betting.
“More legal gambling leads to more total gambling, which in turns leads to an increased incentive to fix plaintiffs' matches,” Shipp said. New Jersey's implementation of sports gambling “would engender the same ills” that the federal 1992 Professional and Amateur Sports Protection Act at the heart of the current legal fight sought to combat, he added.
Shipp based his decision partly on the public interest in knowing whether the new state law is in conflict with federal law. He indicated the temporary restraining order was necessary to ensure the issue is argued in court.
"The public interest is served in preserving the status quo until the merits of a serious controversy can be fully considered by the court,” Judge Shipp commented.
The injunction remains in force pending the finalization of litigation between New Jersey and the sports leagues that started in Judge Shipp's court but has since been unsuccessfully appealed and then refused a hearing by the US Supreme Court. Another round of court actions and fresh state legislation is now taking shape.
Monmouth Park racetrack was ready to start taking bets this Sunday, but has had to step back in the face of the injunction, a spokesman for the operator confirmed.
Judge has given all parties until Monday 27 October to submit briefs arguing against a more permanent injunction.
Some of industry observers cunningly noticed that the restraining order technically only applies to those sports governed by the complaining sports leagues, leaving gambling on activities like golf, tennis, boxing, MMA fighting, NASCAR and soccer unimpeded. Another interesting fact refers to this week's game between two NFL teams playing in London, ironically attracting big money betting with British bookies and nevertheless surviving the experience unscathed!
The sports leagues have already indicated that they will fight to the end. Any attempt to avoid the PASPA will result in another round of expensive court actions.
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