Courts To Decide Between New Jersey and Leagues in Sports Betting Lawsuit

It isn’t news that sports betting in New Jersey was illegal for quite some time. And in 2018, when it finally became legal, the numbers began to pour in. They were seeing the results they had hoped to pretty quickly.

The issue here is regarding the NJTHA (New Jersey Thoroughbred Horsemen’s Association). There was a concerted effort to try and block New Jersey’s wagering law, which happened a few years after the legalization of sports betting. And it’s pretty clear they feel slighted.

There will be a May 15 conference where nine judges will decide if it is right to get involved in the legal decision. They were unable to operate a sportsbook at Monmouth Park for four years as a result of the injunction, so they do feel they are entitled to significant compensation.

The approximate number they would have brought in through earning sits at $139.7 million. The figure they’re setting the number they are suing for is $150 million. All that has to happen for them to be able to take this to court would be if four of the nine justices agree with their claim. Pretty simple, right?

This will go to a Federal court if that does happen, setting the stage for what could be a historic ruling. Their main theory here is that the landmark claim made by the Supreme Court in 2018 to legalize sports betting made the previous precedent obsolete.

Lots Of Lost Revenue

There was a one-month restraining order in 2014, and in that period, they claimed they’d have made roughly $10.2 million. Add the amount of profit made at Monmouth Park over the next 54 months, and it comes out to about $140 million. When you add those together, you get the number they are staking a claim for.

The New Jersey horsemen all agree that it is premature to ask for the Supreme Court’s involvement at this point. There need to be more developments, and the justices need to speak, and possibly get some word from the other pro leagues about appropriate action.

This ruling has the chance to set a serious precedent for some other leagues too. If they are able to pull off a win and make the earnings back that they believe they were robbed of during the period, others that feel slighted could take similar action.

Obviously, figures have significantly changed since betting became legalized. Slowly but surely, other states have been following suit in taking the same stance.

And so as that happens, they can look at potential amounts lost through time periods, and if the business needs it, they can take lawful action.

Still A Ways To Go

There is still plenty to be decided between now and the May 15 date, which is currently 10 days away. Each justice is likely spending time examining the facts and trying to establish a picture of the situation which they can present on when the day does arrive.

And even if they opt not to take it to the Supreme Court, there will be an amount of money awarded to the NJTHA. This is going to be a victory for them in some capacity, but obviously, the level of which that is true is yet to be determined.

Any four-year window where wagers cannot be accepted is going to kill any sports book or racetrack. The amount of profit not gained is the equivalent of the net worth of several top sports stars. There are HIGH eight-figure sums.

This decision could bring significant financial relief to the NJTHA and so they’ll be hoping for the best. Until May 15, all we can do is wait.

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