iMEGA vs. PASPA: Battleground New Jersey

What is PASPA and why are iMEGA seeking to overturn it in New Jersey when they are already fighting the infamous UIGEA (Unlawful Internet Gambling Enforcement Act)? iMEGA Chairman Joe Brennan, stated that,

"PASPA, as it's written, is a violation of federalism and infringes on a state's rights to raise revenue. It created a special class for a small number of states and deprived other states from being able to be a part of it."

PASPA was passed in 1992 and prohibited expansion of sports betting beyond the four states that permitted it at the time: Nevada, Delaware, Oregon, and Montana. The other 46 states had one year from its passage to opt out of the law. New Jersey did not opt out of the law within the provided one year time frame due to the time constraints of one year. Recent declines in revenue in the state have resulted in calls from some sectors to utilize the revenue streams of sports gambling. PASPA proves a problem.

iMEGA will seek to establish that the act goes against the United States Constitution and is a direct violation of federalism. The constitution states that, “the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Essentially, the passing of a law by the federal government that intrudes on a States right to choose whether it wants to partake in gambling goes against Federalism.

Brennan explained iMEGA's interest in seeing PASPA overturned: "New Jersey is interested in doing intrastate wagering on sports and using technology as a remedy for problems that opponents would have. It could be used as a case study for the rest of the country.”

The sports betting market is a multi-billion dollar industry. Wagering in Nevada's 176 sports books on the 2009 Super Bowl between the Arizona Cardinals and Pittsburgh Steelers was over $81 million. In 2008, when the New York Giants upset the New England Patriots, bets were $92 million. There is serious money to be earned through the legalization of sports gambling and iMEGA wants to see the control of the revenues go to the States themselves.

A press conference announcing the lawsuit was scheduled for Monday, March 23rd at Room 103 of the State House in Trenton at 11:00am.