When Gov. Chris Christie’s office issued a directive on Monday, Sept. 8 telling law enforcement not to prosecute racetracks, casinos and their patrons for engaging in sports betting, it was just the beginning of questions.
In this column, I'll look at some of the most burning ones we’re getting from readers and on Twitter.
OMG, sports betting is legal in New Jersey? I don’t really believe it. Will bets actually be placed?
This depends a little on who you ask, but my opinion is "absolutely". I have little doubt cash will physically be changing hands in exchange for betting tickets very soon despite the naysayers sounding off through many media outlets.
I spoke to Dennis Drazin Monday, an attorney and advisor for Monmouth Park, and he said he could walk over and place a bet right then at the track if he wanted to. He wasn’t going to, of course, but Monmouth said Wednesday they’d be taking bets in 45 days. The reason for the waiting period is the leagues had reportedly requested it.
Drazin thinks the leagues will continue to fight this issue. Sen. Ray Lesniak says the leagues are KO’d on sports betting and are just looking for a deal to get their cut.
Who will be taking the bets?
All along, it’s looked like Monmouth Park race track would be the first. They partnered with William Hill last year, but Will Hill likely won’t be taking any bets there yet.
William Hill is a multi-national corporation with major interests in Nevada. They’re not saying much right now, so I’d expect them to wait for the clarification from U.S. Court (Oct. 6 or earlier) before they do anything. Expect casinos to do the same with so much at stake in other states for them.
Drazin said it would be “a very basic operation” to start, so it sounds like Monmouth race track itself will be taking the bets initially. Don’t expect a menu as extensive as what Will Hill offers in Las Vegas and Rutgers games and collegiate events within the state of New Jersey are off limits.
After that, Meadowlands race track could be next. They’ve partnered with CT Technologies (formerly Cantor) and began offering free-play sports betting options this month.
How is this possible? I thought PASPA blocked states from allowing sports betting.
PASPA blocks government or individuals from sponsoring, operating or authorizing sports betting. It doesn’t say anything about allowing private companies to offer sports betting. New Jersey also still won’t be sponsoring, authorizing or licensing sports betting operations – they simply won’t be criminally or civilly prosecuting private business or regulating the betting. For now.
Why is Sen. Lesniak proposing new legislation next week?
Because right now there isn’t any. His legislation that sailed through the Senate and Assembly this summer was vetoed by the governor. So right now, there's nothing formally in the law books to support the race tracks from running sports betting operations. It’s only a directive from the Attorney General and Governor’s office.
Sen. Lesniak has said that without this legislation, he doesn’t think there’s any chance of U.S. District Court lifting its previous injunction when it responds to New Jersey’s motion on Oct. 6.
Why did Gov. Christie change his mind on sports betting?
As Sen. Lesniak said in an ESPN podcast with Chad Millman Wednesday, “He heard footsteps.”
It was looking more every day like Lesniak had gained the support he needed to override the veto on Sept. 22. That would’ve been embarrassing for the Governor and would show he’s just getting in the way of what the people of New Jersey want.
New Jersey was going to do this with or without him and he is just trying to get on the winning side of it.
Will sports betting save New Jersey?
It probably won’t be the silver bullet that saves New Jersey from economic decline. The casinos aren’t even on board yet with sports betting and action at sportsbooks isn’t going to replace the loss of four casinos and 10,000 jobs.
But make no mistake, sports betting should provide a significant boost for years to come and could realistically save the horse racing industry.
Drazin has estimated Monmouth could see $1 billion a year in sports bets there, with a take between $50-75 million. Nevada saw about $3.4 billion in sports wagers in 2012, so this isn’t an inconceivable number.
Drazin says Monmouth loses about $4.5 million a year currently, so those projections are more than enough to put the track in great shape. He also says he needs to hire about 111 people just to get things started at the book.
These numbers don’t even take into account the potential for huge non-gaming revenues that stem from sports betting. The Las Vegas Convention and Visitors Authority estimated that Sin City saw over 300,000 visitors for the Super Bowl in each of 2012 and 2013. They estimated that totaled over $106 million in non-wagering activity for just the Saturday and Sunday alone.
Throw in March Madness, NFL Sundays and a few other big events during the year and you can hear the cash registers ringing.
Is Nevada hoping sports betting never comes to New Jersey?
No, in fact, most in the sports betting world are supporting it. The sportsbook directors that Covers has spoken to are in favor of legalized sports betting in New Jersey.
Jay Kornegay, VP at the Westgate Superbook, spoke openly about supporting it at this year’s Sloan Sports Analytics Conference in Boston. Chad Millman said on his podcast this week that Bob Scucci at Boyd Gaming fully supports it and the list goes on.
Las Vegas is always going to be the world’s epicenter of sports betting. And those who work in sports betting want the whole industry to be legitimized from a mainstream perspective.
Why aren't the leagues talking?
I wrote about the hypocrisy of the silence from the leagues this week. If they’re so morally disgusted with sports betting, why aren’t they screaming from the roof tops right now?
I believe the leagues are backpedaling. They know the tide has turned in the sports betting battle and they’re trying to figure out how to proceed or how to get their piece of the pie.
There’s also the possibility that the leagues may no longer be unified in this fight so they are unable to come out with a message they can all agree to.
“It’s inevitable that, if all these states are broke, that there will be legalized sports betting in more states than Nevada and we will ultimately participate in that,” said NBA Commissioner Adam Silver last week in New York.
There have also been rumors the NHL is looking at expanding to Las Vegas, so we may be seeing a shift in philosophy from at least one or two of the leagues.
How does this impact sports betting in North America?
This could be the ultimate tipping point for legalized sports betting that we’ve been waiting for.
When sports betting begins in New Jersey in October, other states are going to want to get in on the fun. Lesniak has said they are already calling.
Reports are saying Minnesota will reintroduce sports betting legislation as soon as January. Mississippi is a possibility. California sports betting legislation passed in its Senate at one point. Delaware already has parlay betting and took on the leagues in the past. Six states wrote amicus briefs in support of New Jersey – Wisconsin, Wyoming, West Virginia, Georgia, Virginia and Kansas.
States are going to race to get into the sports betting game and ultimately Congress will have to act to legislate it at the federal level. PASPA will be an ugly stain in the history books, just like prohibition of the 1920s, and it will be up to states to legalize betting if they want to.
This could also help legalize single-game wagering in Canada, where sports betting bill C290 is poised to see another vote in the Senate this fall. If the leagues stop fighting sports betting, we’ll see legalized single-game wagering in Canada before the end of 2014 also.
In this column, I'll look at some of the most burning ones we’re getting from readers and on Twitter.
OMG, sports betting is legal in New Jersey? I don’t really believe it. Will bets actually be placed?
This depends a little on who you ask, but my opinion is "absolutely". I have little doubt cash will physically be changing hands in exchange for betting tickets very soon despite the naysayers sounding off through many media outlets.
I spoke to Dennis Drazin Monday, an attorney and advisor for Monmouth Park, and he said he could walk over and place a bet right then at the track if he wanted to. He wasn’t going to, of course, but Monmouth said Wednesday they’d be taking bets in 45 days. The reason for the waiting period is the leagues had reportedly requested it.
Drazin thinks the leagues will continue to fight this issue. Sen. Ray Lesniak says the leagues are KO’d on sports betting and are just looking for a deal to get their cut.
Who will be taking the bets?
All along, it’s looked like Monmouth Park race track would be the first. They partnered with William Hill last year, but Will Hill likely won’t be taking any bets there yet.
William Hill is a multi-national corporation with major interests in Nevada. They’re not saying much right now, so I’d expect them to wait for the clarification from U.S. Court (Oct. 6 or earlier) before they do anything. Expect casinos to do the same with so much at stake in other states for them.
Drazin said it would be “a very basic operation” to start, so it sounds like Monmouth race track itself will be taking the bets initially. Don’t expect a menu as extensive as what Will Hill offers in Las Vegas and Rutgers games and collegiate events within the state of New Jersey are off limits.
After that, Meadowlands race track could be next. They’ve partnered with CT Technologies (formerly Cantor) and began offering free-play sports betting options this month.
How is this possible? I thought PASPA blocked states from allowing sports betting.
PASPA blocks government or individuals from sponsoring, operating or authorizing sports betting. It doesn’t say anything about allowing private companies to offer sports betting. New Jersey also still won’t be sponsoring, authorizing or licensing sports betting operations – they simply won’t be criminally or civilly prosecuting private business or regulating the betting. For now.
Why is Sen. Lesniak proposing new legislation next week?
Because right now there isn’t any. His legislation that sailed through the Senate and Assembly this summer was vetoed by the governor. So right now, there's nothing formally in the law books to support the race tracks from running sports betting operations. It’s only a directive from the Attorney General and Governor’s office.
Sen. Lesniak has said that without this legislation, he doesn’t think there’s any chance of U.S. District Court lifting its previous injunction when it responds to New Jersey’s motion on Oct. 6.
Why did Gov. Christie change his mind on sports betting?
As Sen. Lesniak said in an ESPN podcast with Chad Millman Wednesday, “He heard footsteps.”
It was looking more every day like Lesniak had gained the support he needed to override the veto on Sept. 22. That would’ve been embarrassing for the Governor and would show he’s just getting in the way of what the people of New Jersey want.
New Jersey was going to do this with or without him and he is just trying to get on the winning side of it.
Will sports betting save New Jersey?
It probably won’t be the silver bullet that saves New Jersey from economic decline. The casinos aren’t even on board yet with sports betting and action at sportsbooks isn’t going to replace the loss of four casinos and 10,000 jobs.
But make no mistake, sports betting should provide a significant boost for years to come and could realistically save the horse racing industry.
Drazin has estimated Monmouth could see $1 billion a year in sports bets there, with a take between $50-75 million. Nevada saw about $3.4 billion in sports wagers in 2012, so this isn’t an inconceivable number.
Drazin says Monmouth loses about $4.5 million a year currently, so those projections are more than enough to put the track in great shape. He also says he needs to hire about 111 people just to get things started at the book.
These numbers don’t even take into account the potential for huge non-gaming revenues that stem from sports betting. The Las Vegas Convention and Visitors Authority estimated that Sin City saw over 300,000 visitors for the Super Bowl in each of 2012 and 2013. They estimated that totaled over $106 million in non-wagering activity for just the Saturday and Sunday alone.
Throw in March Madness, NFL Sundays and a few other big events during the year and you can hear the cash registers ringing.
Is Nevada hoping sports betting never comes to New Jersey?
No, in fact, most in the sports betting world are supporting it. The sportsbook directors that Covers has spoken to are in favor of legalized sports betting in New Jersey.
Jay Kornegay, VP at the Westgate Superbook, spoke openly about supporting it at this year’s Sloan Sports Analytics Conference in Boston. Chad Millman said on his podcast this week that Bob Scucci at Boyd Gaming fully supports it and the list goes on.
Las Vegas is always going to be the world’s epicenter of sports betting. And those who work in sports betting want the whole industry to be legitimized from a mainstream perspective.
Why aren't the leagues talking?
I wrote about the hypocrisy of the silence from the leagues this week. If they’re so morally disgusted with sports betting, why aren’t they screaming from the roof tops right now?
I believe the leagues are backpedaling. They know the tide has turned in the sports betting battle and they’re trying to figure out how to proceed or how to get their piece of the pie.
There’s also the possibility that the leagues may no longer be unified in this fight so they are unable to come out with a message they can all agree to.
“It’s inevitable that, if all these states are broke, that there will be legalized sports betting in more states than Nevada and we will ultimately participate in that,” said NBA Commissioner Adam Silver last week in New York.
There have also been rumors the NHL is looking at expanding to Las Vegas, so we may be seeing a shift in philosophy from at least one or two of the leagues.
How does this impact sports betting in North America?
This could be the ultimate tipping point for legalized sports betting that we’ve been waiting for.
When sports betting begins in New Jersey in October, other states are going to want to get in on the fun. Lesniak has said they are already calling.
Reports are saying Minnesota will reintroduce sports betting legislation as soon as January. Mississippi is a possibility. California sports betting legislation passed in its Senate at one point. Delaware already has parlay betting and took on the leagues in the past. Six states wrote amicus briefs in support of New Jersey – Wisconsin, Wyoming, West Virginia, Georgia, Virginia and Kansas.
States are going to race to get into the sports betting game and ultimately Congress will have to act to legislate it at the federal level. PASPA will be an ugly stain in the history books, just like prohibition of the 1920s, and it will be up to states to legalize betting if they want to.
This could also help legalize single-game wagering in Canada, where sports betting bill C290 is poised to see another vote in the Senate this fall. If the leagues stop fighting sports betting, we’ll see legalized single-game wagering in Canada before the end of 2014 also.
