Michael Shipp Set to Make Summary Judgment on PASPA Lawsuit by Thursday

Dennis Drazin - Monmouth Park Lawyer

Dennis Drazin Expects Shipp to Rule against New Jersey, But Hopes for a Win on Appeal

U.S. District Court Judge Michael Shipp agreed early Thursday morning to issue a summary judgment in the sports betting lawsuit filed by the NFL and four other sports associations last month. Because the judge agreed to summary judgment, he will forgo the trial phase.

Both sides had asked Judge Shipp to agreed to a summary decision, because the basic facts of the case are not in dispute. Lawyers for the state of New Jersey and the sports leagues will file legal briefs to defend their arguments, but otherwise, the case is in the hands of the judge.

Monmouth Park Wanted a Trial

One party in the case had asked for a trial. Monmouth Park had objected to the summary judgment and had hoped to make a case before Judge Shipp. It is Monmouth Park, a licensed racetrack in North Jersey, which had planned to open the first sportsbook in New Jersey, had the lawsuit not occurred.In the weeks before a temporary restraining order was issued by Judge Shipp to stop sports betting activities, Monmouth Park was training 110 personnel to operate their sportsbook at the William Hill Bar & Restaurant on the racetrack’s property.

Shipp Might Rule on Thursday

Michael Shipp is expected to rule quickly on the case, because the temporary restraining order he issued last month is set to expire on Friday, November 21. Those familiar with the case expect Shipp to announce a decision as early as Thursday afternoon or evening, though a decision might be announced early Friday morning, instead.

If Shipp rules in the favor of New Jersey, then Monmouth Park theoretically could accept sports bets on NFL, NBA, NHL, and NCAA contests as early as this weekend, though it might be next weekend before that would be feasible. The only college football and basketballs events which would not be on the docket would be those taking place inside the state of New Jersey, or involving teams from the state.

Drazin Expects a Loss for New Jersey

Dennis Drazin, an attorney for the owners of Monmouth Park, expects Judge Shipp to rule in favor of the leagues. Drazin is more optimistic that New Jersey and Monmouth Park can win the case on appeal, as any ruling could be appealed to the Third Circuit Court of Appeals.

Third Circuit Court of Appeals

The Third Circuit Court of Appeals saw a similar case involving New Jersey and the 5 sports associations in the fall of 2013. In that case, the leagues won the case 2-1, but the ruling panel said that New Jersey could allow sports betting at venues in their state, but only if the government did not try to regulate such activities.

The case involves interpretations of the 1992 Professional and Amateur Sports Protection Act, which limited sports gambling to four U.S. states: Nevada, Delaware, Montana, and Oregon. Those four states had sports betting before 1992, so their activities were grandfathered into the PASPA law.

Commerce Clause of the Constitution

New Jersey argues that the PASPA is unconstitutional under the Commerce Clauses, because it picks favorites among the U.S. states, instead of encouraging fair and equitable commerce between the states. The leaders of New Jersey, such as Governor Chris Christie, have consistently argued that gambling is a states rights issue.

To align its laws with the recommendations in the 2013 ruling by the Third Circuit Court of Appeals, New Jersey’s state legislature passed a law in October repealing most of the state’s sports betting laws. When Governor Chris Christie signed the bill into law in late-October, politicians believed they had cleared the way for a favorable decision by Judge Shipp.

Gambling by Sunday Not Realistic

Now, most of New Jersey’s leaders do not expect a positive development in the U.S. District Court of Michael Shipp. Dennis Drazin says Monmouth Park wouldn’t be prepared to take bets this weekend, even if the ruling went its way. Drazin said, “If the judge shocked everyone and said Monmouth Park could move forward as soon as it wants, we would try to do that as soon as possible. But to do it for [this] Sunday–that’s just not practical. It’s not a realistic way to look at this.