New Jersey looks to cash in on pro sports gambling

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Another Day, Another Dollar
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TRENTON, N.J. -- Sports betting _ once considered a dead issue for Atlantic City _ is getting another look.

Lured by the chance of collecting hundreds of millions more in taxes, the leader of the Assembly Budget Committee is pushing the plan. And to make it more attractive to the non-gambling public, it calls for hospitals to get as much as $300 million from the proceeds.

Gov. James E. McGreevey is willing to hear details, as are the state's hospitals.

A decade ago, public opinion and opposition from pro sports leagues helped sink a push to allow casino wagers on sports, but the image of Atlantic City has changed, said Assemblyman Louis D. Greenwald, D-Camden. So, too, has the state's economy, making the idea of taxing the wagers that much more inviting.

"We have gambling in New Jersey. I think we've demystified the notions of corruption in the casino industry," Greenwald said. "We need to look at something that helps them and, in helping them, helps us."

Greenwald will meet Monday with hospital officials to ask for their support.

Under his plan, the state would tax the betting and send hospitals a portion to help pay the cost of medical care for the working poor and uninsured. No wagers would be allowed on college or other amateur sports events.

Exactly how much would be wagered at the 12 casinos _ and how much would be collected by the state _ is not known.

"It's clearly hundreds of millions of dollars," Greenwald said. Last year, Nevada's 161 sports books handled $1.8 billion in wagers and won $123 million from gamblers, according to the Nevada Gaming Control Board.

If hospital officials approve of using gambling tax revenues, Greenwald said he would ask them to lobby Congress to repeal a 1993 law that bans sports betting anywhere but Nevada.

The New Jersey Hospital Association, the hospitals' lobbying arm, has discussed the sports betting issue with Greenwald, as well as other ideas to fund so-called charity care.

"The gaming proposal is just one of many options that have been part of those discussions," spokeswoman Kerry McKean-Kelly said Friday.

McGreevey is open to the idea, spokesman Micah Rasmussen said.

"We look forward to reviewing the details," he said.

If the Legislature clears his bill, it could lead to a court fight. Greenwald maintains that the federal ban is unconstitutional and said he will ask the attorney general to review the issue.

Atlantic City casinos have long wanted to offer sports betting, saying they are at a disadvantage against the Las Vegas casinos. They could use the boost now, with the prospect of new competition in surrounding states threatening to siphon business from the Boardwalk.

"It'd be a huge benefit to Atlantic City. It would enable us to compete with Las Vegas. Sports betting in Las Vegas is dynamic, huge, almost a separate industry," said Dennis Gomes, president of the Casino Association of New Jersey.

He would not estimate how much it could generate in New Jersey, but said the business boost would mean new jobs and perhaps more casino expansions.

"I don't know the numbers, but it's a lot of revenue. It would attract a tremendous number of customers.

"A huge number of our customers would love to have it. The big ones all go to Las Vegas and they're always making bets in sports books. It would be a boon to Atlantic City," Gomes said.

Gamblers _ especially those who patronize Atlantic City casinos' race books _ often ask why they can't bet on sports there, he said.

In 1993, New Jersey was exempted from a federal law banning sports betting anywhere but Nevada. The law gave New Jersey until Jan. 1, 1994, to approve sports betting for Atlantic City. But the casinos lost the opportunity when the Legislature failed to put a constitutional amendment on the ballot.

At the time, sports betting was opposed by U.S. Sen. Bill Bradley, D-N.J., and by the National Basketball Association, as well as other professional sports leagues.

http://www.newsday.com
 

Old Fart
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Can we get a few words please from Wild Bill, on why this will never happen.


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For me it would be great.I'll be able to set up phone accts..
winning weekends I could jump in the car collect my winning on mondays and play alittle holdem.
Never have to worry about slow pays or no pays again.
and if I get a heart attack after a bad beat all the hospitals will be in good shape to take care of me
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by BillDozer:
this would blow US betting wide open<HR></BLOCKQUOTE>
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Haha OMT. This sounds interesting but I just have to guess that with at least the Devils and Giants still around they will somehow shut this one down. I agree completely though that the ban is unconstitutional, just about every lawyer I have heard from on the subject said the Feds would be shamed to even defend it much.

McGreevey is out trying to get any money he can in any way he can. He appears to me to be half beggar, half back-stabber at least when it comes to gaming. He wants to take a lot of money from them, but doesn't want to kill the golden goose. I could easily see him supporting it, but remember the sports leagues play hardball. Also I think the NBA has a lot of people working in Secaucus so yet another reason to think this won't go far.

As for blowing open sports betting in the country, that I doubt. Maybe it would interest a few other states, but there just isn't enough money in it. As a nice compliment to an already functioning industry it is a good idea. As a start-up idea in a state with limited gaming options I think it would just cause major revenue disappointments.
 

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Organized crime is dead set against legalizing sports betting in NJ. Besides those people who would be against this from happening?
 

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Las Vegas lobbyists had congress pass law to prevent sports betting outside Nevada. Now all the sports teams are leaving NJ. Jets moving back to New York. Nets to Brooklyn. Devils might go out of business after lock-out. New York Giants will move soon or later. The major objection over betting in AC will soon be eliminated. Serves NJ right for believing teams would stay at Meadowlands.

Sports Books could save Trump properties. Would bring in huge business during NFL and College Basketball Tournament.
 

Rx. Senior
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Will NEVER happen, at least in the next 30 years or so
 

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Check out the Nevada hold percentage. Despite a group of sports book managers that include many that would struggle running Bingo Night at a Senior Citizen Home, they still "held" 6.8%*.

Boy, do bad bettors really stink at this!

* If you are or were a sports book manager for the Aladdin, you probably represent this remark more than any other book.
 

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Handicapper
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Congress would have to overturn the non-proliferation act that it passed years ago which said that sports betting in the US could not be expanded beyond the places that it was already legal to bet on sports.
 

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All NJ has to do is go to the Supreme Court and it gets overturned. Its a state's right issue plain and simple. What if Congress passes a law saying Fla is the only state that can sell oranges legally? The law would be unconstitutional based on states rights. Same with gambling(sports betting).
 

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Chuck, while common sense says you are 100% right and most attorneys seem to believe that, I just don't trust the courts on this matter sometimes. Especially with this DOJ, they could create some national security BS argument for all I know. But on basic principles yes it is ridiculous because it is a state law covering gaming as long as the bets are only taken within a state.
 

Another Day, Another Dollar
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>I just don't trust the courts on this matter sometimes <HR></BLOCKQUOTE>

Not sure I trust the courts on any issue. The most honest appearing judges are as corrupt as gangsters. And I see this in a small town. I can only imagine the extent of corruption at a high federal level.
 

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Government officials are realizing the power of the ole mighty tax dollar is what pays their paycheck. They are running out of ways to tax. Most states now have the lottery, many have horses, and the next thing is sports gambling which would be the granddaddy of all these little sin taxes. They can only raise the taxes on gas so much more.
About 20 suburbs here in the Dallas area have or are attempting to pass laws to allow alcohol sales in their cities. Everyone was having to go to Dallas or a few other towns to buy boos, but now the suburbs need the money and are wanting to keep their tax dollars at home and everyone that gets the alcohol sales vote on the ballot are winning the vote in huge fashion.
Hopefully Atlantic City starts it and others follow.
 

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If sports gambling passes in NJ the politicians my be surprised how little money is generated. It's no accident that the smallest area in all Las Vegas Casinos is the race and sports book.
 

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