New Jersey revives sports betting after court struck it down

[October 18, 2014]  (Reuters) - New Jersey Governor Chris Christie on Friday revived the state's attempt to allow sports betting, signing legislation that seeks an end run around court decisions blocking legalized wagering on sporting events.

The bill, passed this week by lawmakers, partially repeals a ban on sports wagering in the state.

"I am a strong proponent of legalized sports wagering in New Jersey. But given earlier decisions by federal courts, it was critical that we follow a correct and appropriate path to curtail new court challenges and expensive litigation," Christie said in a statement. "I believe we have found that path in this bipartisan legislative effort."

Voters approved the idea of legal sports betting in 2011. The next year, Christie signed a bill doing just that. But the NBA, NFL and other sports leagues sued, saying it violated a federal ban on the activity in all U.S. states except four.

The federal court sided with the leagues, so the state appealed. But the U.S. Supreme Court refused to hear the case, leaving the lower court's ban in place.

John Jay Hoffman, Christie's acting attorney general, then directed law enforcement authorities not to prosecute the New Jersey racetracks and casinos that allowed sports betting. The state's struggling gambling industry hopes that it could help revive flagging revenues.

"It will be a lifeline to Atlantic City casinos and for the horse racing industry, creating jobs and economic opportunities that will serve the city and the state for years to come," State Sen. Raymond Lesniak said in a statement. "Sports betting is now much closer to a reality in New Jersey."

Christie had asked the court to clarify its earlier ruling. That question remains unanswered, and sports leagues could challenge the new law in court.

(Reporting by Hilary Russ in New York; Editing by Richard Chang)

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