K.C.
08-24-2009, 01:01 PM
UPDATED: Court kills single-game bets; state officials stunned
By SEAN O’SULLIVAN and CRIS BARRISH
The News Journal
PHILADELPHIA — Delaware’s proposal to launch single-game sports betting next week violates federal law and cannot proceed, a three-judge panel of the U.S. 3rd Circuit Court of Appeals ruled today.
The panel made its surprise ruling from the bench after a nearly two-hour hearing. Judge Theodore McKee said a written order outlining their ruling would be issued later today. Sports betting was set to start in Delaware Sept. 1.
Attorneys for both the state and America’s major sports leagues said they wanted to see the written ruling before making a final comment, but it seemed to be a complete victory for college and pro sports.
“We’re very disappointed with the ruling,’’ said a stunned Michael Barlow, legal counsel to Gov. Jack Markell, after the court’s verbal ruling.
Attorney Kenneth J. Nachbar, representing pro football, baseball, hockey, basketball and the National Collegiate Athletic Association, said after today’s ruling that he was “delighted’ with the result.
The panel was only expected to rule Monday on the issue of a temporary order to stop Delaware from launching sports betting with single-game wagers against a point spread and bets on all sports except pro football while the leagues’ federal lawsuit moved through the court system.
However, during the oral arguments, members of the three-judge panel indicated there appeared to be no factual dispute between the state and the sports leagues and it was a simple matter of law that they could resolve at this stage.
And after leaving the bench and conferring together for about 40 minutes, the three judges -- McKee, Julio Fuentes and Thomas Hardiman -- returned to the bench and announced that not only did they think there was a “likelihood” the leagues would prevail at trial, but had decided the state’s plan violated the Professional and Amateur Sports Protection Act of 1992.
Delaware had argued that it was grandfathered under that law and was allowed to conduct nearly any kind of “sports lottery” as long as it was under the direction of the state lottery director and was used to raise state funds.
But the panel, during arguments, expressed deep skepticism that the exemption for Delaware was so broad as to allow single-game wagering. Circuit Judge Hardiman told attorneys for Delaware they had an “uphill battle” to convince him.
The judges seemed persuaded by the leagues arguments that the federal law exempted Delaware only “to the extent’’ that it conducted sports betting in 1976 -- which was multi-game “parlay” bets on football.
It appears Delaware will now be limited to only multi-game “parlay” wagering similar to what the state tried in 1976.
It is unclear if the state will also be limited to just football games, in 1976, and as the
sports leagues argued.
Barlow, echoing the state’s outside attorneys, led by Andre G. Bouchard of Wilmington, said the governor’s office will be discussing whether to appeal or how to proceed with sports in the next few days. “We were counting on this revenue to help balance our budget,’’ Barlow said. “We’ll have to see what measures we need to take.”
The state has 14 days to ask for hearing before the entire appeals court to reconsider and possibly reverse today’s ruling. The state also could appeal directly to the U.S. Supreme Court.
Delaware’s three racetrack casino had been planning to open their sports books eight days from today in advance of the college and pro football season. Markell’s office had projected the state would reap $17 million in revenue from spots bets and “crossover’’ slots betting by sports gamblers in the fiscal year that ends July 1.
In-con-solable!
By SEAN O’SULLIVAN and CRIS BARRISH
The News Journal
PHILADELPHIA — Delaware’s proposal to launch single-game sports betting next week violates federal law and cannot proceed, a three-judge panel of the U.S. 3rd Circuit Court of Appeals ruled today.
The panel made its surprise ruling from the bench after a nearly two-hour hearing. Judge Theodore McKee said a written order outlining their ruling would be issued later today. Sports betting was set to start in Delaware Sept. 1.
Attorneys for both the state and America’s major sports leagues said they wanted to see the written ruling before making a final comment, but it seemed to be a complete victory for college and pro sports.
“We’re very disappointed with the ruling,’’ said a stunned Michael Barlow, legal counsel to Gov. Jack Markell, after the court’s verbal ruling.
Attorney Kenneth J. Nachbar, representing pro football, baseball, hockey, basketball and the National Collegiate Athletic Association, said after today’s ruling that he was “delighted’ with the result.
The panel was only expected to rule Monday on the issue of a temporary order to stop Delaware from launching sports betting with single-game wagers against a point spread and bets on all sports except pro football while the leagues’ federal lawsuit moved through the court system.
However, during the oral arguments, members of the three-judge panel indicated there appeared to be no factual dispute between the state and the sports leagues and it was a simple matter of law that they could resolve at this stage.
And after leaving the bench and conferring together for about 40 minutes, the three judges -- McKee, Julio Fuentes and Thomas Hardiman -- returned to the bench and announced that not only did they think there was a “likelihood” the leagues would prevail at trial, but had decided the state’s plan violated the Professional and Amateur Sports Protection Act of 1992.
Delaware had argued that it was grandfathered under that law and was allowed to conduct nearly any kind of “sports lottery” as long as it was under the direction of the state lottery director and was used to raise state funds.
But the panel, during arguments, expressed deep skepticism that the exemption for Delaware was so broad as to allow single-game wagering. Circuit Judge Hardiman told attorneys for Delaware they had an “uphill battle” to convince him.
The judges seemed persuaded by the leagues arguments that the federal law exempted Delaware only “to the extent’’ that it conducted sports betting in 1976 -- which was multi-game “parlay” bets on football.
It appears Delaware will now be limited to only multi-game “parlay” wagering similar to what the state tried in 1976.
It is unclear if the state will also be limited to just football games, in 1976, and as the
sports leagues argued.
Barlow, echoing the state’s outside attorneys, led by Andre G. Bouchard of Wilmington, said the governor’s office will be discussing whether to appeal or how to proceed with sports in the next few days. “We were counting on this revenue to help balance our budget,’’ Barlow said. “We’ll have to see what measures we need to take.”
The state has 14 days to ask for hearing before the entire appeals court to reconsider and possibly reverse today’s ruling. The state also could appeal directly to the U.S. Supreme Court.
Delaware’s three racetrack casino had been planning to open their sports books eight days from today in advance of the college and pro football season. Markell’s office had projected the state would reap $17 million in revenue from spots bets and “crossover’’ slots betting by sports gamblers in the fiscal year that ends July 1.
In-con-solable!