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US Federal sports betting Act: Constitutional challenge The Interactive Media Entertainment limited geographically. Once a prohibitions are: State legalizes sports gambling, it ● ‘A lottery, sweepstakes, or other & Gaming Association (IMEGA), will be extremely difficult for other betting, gambling, or wagering New Jersey’s Senator, Raymond States to resist the lure. The current scheme in operation in a State or Lesniak and a number of pressures in such places as New other governmental entity, to the horseracing-related associations in Jersey and Florida to institute extent that the scheme was casino-style sports gambling conducted by that State or other New Jersey recently filed a illustrate the point. Without governmental entity at any time complaint in a US district court Federal legislation, sports gambling during the period beginning 1 claiming that the federal is likely to spread on a piecemeal January 1976 and ending 31 Professional and Amateur Sports basis and ultimately develop an August 1990; Protection Act (PASPA) violates the irreversible momentum 1 ’ . ● a lottery, sweepstakes, or other The harms of sports wagering betting, gambling, or wagering US Constitution. Linda J. Shorey, were felt to override the value it scheme in operation in a State or Dennis M.P . Ehling, Robert A. would provide to states as a other governmental entity where Lawton and Anthony R. Holtzman, potential revenue source because: both: of K&L Gates LLP , explain the ● ‘The answer to State budgetary ● such scheme was authorized by problems should not be to increase a statute as in effect on 2 October PASPA and examine the complaint the number of lottery players or 1991; and challenging it. sports bettors, regardless of the ● a scheme described in section On 23 March, the Interactive worthiness of the cause. The 3702 (other than one based on Media Entertainment & Gaming committee believes the risk to the parimutuel animal racing or jai- Association (IMEGA), various reputation of one of our Nation’s alai games) actually was conducted New Jersey horseracing-related most popular pastimes, in that State or other governmental associations (collectively professional and amateur sporting entity at any time during the ‘Association Plaintiffs’) and New events, is not worth it 2 ’ . period beginning 1 September Jersey State Senator Raymond It was also thought that legalizing 1989 and ending 2 October 1991, Lesniak, filed a complaint in the sports wagering would not reduce pursuant to the law of that State or US District Court for the District illegal sports wagering but instead other governmental entity; of New Jersey asserting that the ‘would likely draw new recruits to ● a betting, gambling, or wagering federal Professional and Amateur illegal gambling 3 ’ . scheme, other than a lottery Sports Protection Act (PASPA), described in paragraph 1, Operative provisions and effect enacted in 1992, violates the US conducted exclusively in casinos Constitution. The Plaintiffs’ goal is The PASPA makes it unlawful for: located in a municipality, but only to return control over the legality ● ‘a governmental entity to to the extent that: of sports wagering in a state to the sponsor, operate, advertise, ● such scheme or a similar state. promote, license, or authorize by scheme was authorized, not later This article provides a brief law or compact; or than one year after the effective explanation of the PASPA and a ● a person to sponsor, operate, date of this chapter [effective 1 brief examination of the complaint advertise, or promote, pursuant to January 1993], to be operated in challenging it. the law or compact of a that municipality; and governmental entity, a lottery, ● any commercial casino gaming PASPA sweepstakes, or other betting, scheme was in operation in such Purpose gambling, or wagering scheme municipality throughout the 10- PASPA’s legislative history reveals based, directly or indirectly year period ending on such that it was perceived as necessary (through the use of geographical effective date pursuant to a to thwart the spread of state- references or otherwise), on one or comprehensive system of State authorized sports gambling more competitive games in which regulation authorized by that because: amateur or professional athletes State’s constitution and applicable ● ‘Sports gambling is a national participate, or are intended to solely to such municipality; or problem. The harms it inflicts are participate, or on one or more ● parimutuel animal racing or jai- felt beyond the borders of those performances of such athletes in alai games 5 ’ . States that sanction it. The moral such games 4 ’ . In sum, PASPA makes it illegal for erosion it produces cannot be Excepted from Section 3702’s a state to permit sports wagering, 06 world online gambling april 2009
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