NBA, MLB make Hail Mary money plea as N.J. sports betting races to finish line

New Jersey is now only a few steps away from finally allowing sports betting, though the date you can actually begin placing wagers is still up in the air.

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New Jersey is now only a few steps away from finally allowing legal sports betting, though the date you can actually begin placing wagers is still up in the air.

But one thing became clear Monday: State lawmakers are unwilling to give any revenue to professional sports leagues — despite passionate pleas from league officials and former Mets and Yankees star pitcher Al Leiter.

Three state legislative committees signed off on a bill Monday that would allow people 21 and over to place bets on sports games, both online and in person at New Jersey’s casinos and racetracks.

The measure (S2602/A4111) also sets up how the state will regulate and tax sports wagering after the U.S. Supreme Court last month gave New Jersey a victory in its seven-year, $9 million court case to legalize such bets.

But the legislation does not include the so-called “integrity fee” that some sports leagues are seeking from states to help pay for increased monitoring to prevent cheating and game-fixing now that sports betting will spread beyond Las Vegas. In its decision, the Supreme Court overturned a 1992 federal ban on such wagering, opening the door for sports across the U.S. to allow sports bets.

Officials from the National Basketball Association, Major League Baseball, and the Professional Golfers Association were asking New Jersey for 0.25 percent of total gaming revenue here, as well as agreements to share data with the state to police the betting.

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They told lawmakers during Monday’s hearing at the Statehouse in Trenton that this measure does not give them “the tools” they need to protect their games.

“We are urging you to slow this process down and draft a bill to be a national model for the rest of the country,” said  Bryan Seeley, senior vice president and deputy general council for Major League Baseball.

But state lawmakers remain steadfastly opposed.

“The tool you’re looking for is money,” state Assemblyman Ralph Caputo, D-Essex, told the leagues Monday. “And that’s not gonna happen. You might as well face reality.”

Caputo noted the NBA and MLB were among five pro and college leagues that repeatedly sued New Jersey since 2011 to stop the state.

“You guys are in it for the money,” Caputo said. “You’re not in it to protect anybody It’s total hypocrisy.”

“As a suggestion, you might want to issue a check for $9 million to the state of New Jersey, just for good faith,” he added, noting how much the court case cost taxpayers. 

Leiter, a Toms River native who now lives in Summit, said this is not just about the fee — but ensuring the leagues and state work together to keep games above board. 

“Honestly, I don’t care about the money,” said Leiter, 52, who retired in 2005. “I do care about my sport. I care about all sports.”

The leagues said they’re not currently considering legal action to stop this bill, but they will continue to oppose it at the legislative level. 

The legislation will now be up for final votes in the full state Senate and Assembly on Thursday. 

After that, only Gov. Phil Murphy‘s signature is needed for casinos and tracks for betting to begin. Monmouth Park racetrack in Oceanport and the Borgata casino in Atlantic City say they’re ready to go. 

But it’s unclear how quickly Murphy will act.

Tracks and casinos must wait for this bill to become law to start accepting bets. Some lawmakers say Murphy will sign it Friday, though that appears unlikely. 

Time is of the essence. Delaware is set to become the first state outside of Nevada to allow full-scale sports betting, beating New Jersey to the punch. And other nearby states are likely to follow after that.

Dan Bryan, a spokesman for Murphy, told NJ Advance Media on Monday the governor’s office will “do a thorough review of the bill before signing.”

“Governor Murphy looks forward to working with the Legislature to enact a law authorizing and regulating sports betting in the very near future,” Bryan added.

State Senate President Stephen Sweeney — New Jersey’s second-most powerful official after Murphy — said he’s not worried about Delaware because it’s a smaller state.

Still, Sweeney said, “it’d be a shame” if the governor doesn’t sign the bill immediately. He and Murphy are in heated state budget negotiations, and it’s possible the sports betting measure could get held up in the talks. 

“We’re moving as quick as we can,” Sweeney, D-Gloucester, told reporters Monday. “But that’s his call. I’m not going to lose any sleep over it.”

The bill sets an 8.5 percent tax rate on the revenue from in-person betting at casinos and tracks. The tax rate for online bets is 13 percent. 

The state estimates making $13 million in tax revenue from the betting in the fiscal year that begins July 1. 

The state Division of Gaming Enforcement would license and regulate the betting. 

The measure would not allow bets on college events taking place in the state or any event involving a New Jersey college team anywhere. Nor would it permit bets on high school sports. 

But there’s nothing in the bill preventing bets on minor league sports — a point that bothered Leiter and the leagues. They argue a player who might not make the majors has more of a financial incentive to throw a game and make a quick score now.

The legislation also excludes casinos whose owners have a stake in pro sports teams. That might affect three Atlantic City gambling halls.

Borgata’s parent company, MGM, owns the Las Vegas Aces of the WNBA. Billionaire Tilman Fertitta owns the Houston Rockets and the Golden Nugget line of casinos.

Caesars is co-owned by Apollo Global Management, and one of the founders of that company has stakes in the New Jersey Devils and Philadelphia 76ers.

But lawmakers noted this bill is a first for the state, and changes could happen down the road.

Brent Johnson may be reached at [email protected]. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook.