The New Jersey Thoroughbred Horsemen’s Association (THA) filed a brief in the sports betting case before the United States Supreme Court. THA’s filing was one of two legal briefs filed in New Jersey’s challenge of the Professional and Amateur Sports Protection Act (PASPA) this week.
Ted Olsen, a former Solicitor General of the United States, filed a legal brief on behalf of the State of New Jersey. In a 57-page argument, Ted Olsen wrote, “The statute obviously and directly prevents New Jersey officials from being responsive to the local electorate’s preferences, because it compels them to maintain in force state-law prohibitions that New Jersey citizens — directly and through a super-majority of their elected representatives — repeatedly have expressed their desire to withdraw.”
In their filing, the Thoroughbred Horsemen’s Association’s lawyers are arguing that the PASPA ban on sports gambling in all but four states is unconstitutional. In particular, the THA argues PASPA violates the U.S. Constitution’s 10th Amendment, specifically the “commandeering clause”.
Commandeering Clause of 10th Amendment
The commandeering clause states that the U.S. federal government cannot compel state or local governments to act against their will. The clause has been used before the US Supreme Court to argue against federal gun laws and marijuana laws, as well as a number of other issues.
In the same legal brief, the Thoroughbred Horsemen’s Association argued that the American sports leagues — who are the plaintiffs in the original sports betting case — discriminate when they try to ban sports betting. The brief points to the embrace by the major sports leagues of daily fantasy sports, while trying to ban sports betting, a similar style of gaming.
Equine Industry Suffers from Sports Betting Ban
The THA’s legal brief states, “While Monmouth Park and the New Jersey equine industry suffer because Monmouth Park is prohibited from conducting sports wagering, the leagues have been profiting from fantasy sports betting, and especially daily fantasy sports betting. Despite the fact that PASPA makes it ‘unlawful’ for states to ‘authorize by law’ betting on the ‘performances of such athletes’ in the leagues’ games, the leagues have done nothing to stop the spread of fantasy or DFS wagering.”
The New Jersey Thoroughbred Horsemen’s Association, which is tied closely to the New Jersey racetrack, Monmouth Park, estimates that legalized sports betting would bring in $1 million a week to Monmouth Park. In essence, striking down PASPA would breathe new life into Monmouth Park, while helping the equestrian industry in the State of New Jersey.
Sports Leagues’ Lawsuit v. New Jersey
New Jersey’s dispute with the sports associations (NFL, MLB, NBA, NHL, NCAA) began in 2012, when the state approved regulated sports betting in a statewide referendum. At the time, New Jersey was dealing with the twin effects of the Global Recession and Hurricane Sandy. Combined with Pennsylvania’s vast expansion of land-based gambling, Atlantic City casinos were facing tough finnacial times.
The American horse racing and racebook industries are dealing with a generational decline in revenues, so New Jersey’s political and business leadership decided sports betting was a good way to save both Atlantic City casinos and Monmouth Park. The sports leagues filed suit against New Jersey’s attempts to legalize sports betting twice.
New Jersey Sports Betting Case
The second of those lawsuits was filed in October 2014, after the New Jersey State Legislature repealed their 2012 sports betting regulations, in reaction to 2013 and 2014 defeats in federal court. With the tacit agreement that New Jersey’s Attorney General would not prosecute them, Monmouth Park and William Hill agreed to open up a sportsbook in late-October 2014. The NFL’s lawsuit forestalled the opening of the sportsbook.
Since then, the lawsuit has wound its way through the federal court system. After a defeat in the district court in Trenton and two defeats in the Third Circuit Court of Appeals in Philadelphia, New Jersey appealed its case to the US Supreme Court. Surprisingly, the SCOTUS agreed to hear the case.
This August, both sides were encouraged to file briefs in attempts to sway the 9 Supreme Court justices. Sometime after the US Supreme Court reconvenes in October, the justices will hear oral arguments from both sides. The decision on whether to uphold or strike down PASPA is expected before next spring.
Thoroughbred Horsemen’s Association’s Legal Brief
While it might seem odd to have horse training and riding association filing a legal brief in the case, the New Jersey Thoroughbred Horsemen’s Association is able to file a legal brief, because it would be materially affected by the Supreme Court decision. The US Supreme Court has specific procedures in such cases, but the SCOTUS encourages all affected parties are encouraged to file legal briefs.
