Dollars & Sense - Federal Court Says No to Sports Betting in New Jersey

Is there really anything in America as hypocritical as sports betting?

"Well, you can do it in Nevada, Delaware, Oregon, and Montana, but everywhere, yea, sorry about that," they say.


New Jersey is the latest state to feel the hypocritical wrath of America's stance on sports betting.  On Tuesday, the U.S. Circuit Court of Appeals voted 2-1 against legalized sports betting in the state. Governor Chris Christie has made the legalization of sports betting in the state a priority, citing increased revenue.

According to an article on Philly.com, casinos in the state of New Jersey brought in $1.77 billion. In 2008, the effective New Jersey casino tax rate was 9.5-percent, thus giving the state a large chunk of change when it comes to taxes.

After losing the judgement, New Jersey can appeal further to either a different U.S. Court of Appeals circuit or to the U.S. Supreme Court. New Jersey is trying to amend the 1992 Professional and Amateur Sports Protection Act that bans sports betting in all but four states.

Opponents to legalized sports betting often cite famous examples of game/match fixing and point shaving scandals as a reason to keep the practice illegal.  Perhaps the most famous example of fixing is the 1919 Black Sox Scandal where eight members of the Chicago White Sox purposely threw games so that the Cincinnati Reds would win the MLB World Series and the gamblers would cash in on big bets.  Pete Rose has been famously banned from the MLB and the Hall of Fame for their roles in gambling with the game of baseball.

Match fixing has been a prominent topic in tennis, recently. Star players like Nikolay Davydenko have been caught up in major betting scandals.  According to a recent ESPN Outside the Lines report, Bobby Riggs allegedly threw the "Battle of the Sexes" in 1973 against Billie Jean King.

Those in favor of legalized sports betting often cite the increased economic benefit to the increasingly cash-strapped state governments and that legalizing the action will allow the states to benefit from the illegal black market that exists.  Job creation can also be cited, though on a lower level relative to other gambling outlets like, say, casinos.

Delaware legalized sports betting in 2009 to the heavy opposition of the four major sports leagues and the NCAA. Since then, though, it does not seem that the sports world nor the state of Delaware has been torn apart by any scandals relating to the legalization.  The simple fact is, what can be done in any newly legalized state can already be done in any previously legalized state.  Perhaps the most logical opponent to that fact would be that the sports books can be more easily monitored and policed if they are kept in only select few states.

Either way, no matter which side of the sports betting argument you are on, the hypocritical law continues on. No worries, though, did you see the MGM Mirage has the San Francisco 49ers favored by 10 over the Indianapolis Colts this week?  The Colts just got Trent Richardson from the Browns!  I'll see you in Las Vegas.


Follow Kevin Rossi on Twitter @kevin_rossi.

Dollars & Sense: ESPN Serves Up 2013 Australian Open

If you did not know, the 2013 Australian Open began this past Monday.  I’m not sure how many of you I-95ers are tennis fans, but it is a big deal in the sport.  The first of the ATP’s four majors, the Australian Open takes to the warmer climate of the Land Down Under while North America is left to defrost as quickly as possible. 

ESPN is carrying the Australian Open for the 29th straight year, its longest running annual broadcast.  The World Wide Leader will be broadcasting 600-plus hours of coverage on ESPN3 and over 100 hours of coverage on ESPN2.  The women’s finals will be on Saturday January 26th, while the men’s final will be on Sunday January 27th.  Both the women’s and men’s final will air live at 3am and re-air at 9am. 

Television ratings are typically thrown around when talking about a sport’s popularity, and unfortunately for tennis and the Australian Open, the television ratings have been less than ideal.  The men’s final that featured Novak Djokovic versus Rafael Nadal earned only a 0.6 overnight, while the women’s final of Maria Sharapova versus Victoria Azarenka earned a mere 0.4 overnight.  Ratings in Australia were extremely good: “When the presentation of the trophy was aired at 1.45am a staggering 1.67m viewers were still glued to the telly.”

Of course there is a major time difference between the United State and Australia making it tough to broadcast (ask NBC about their handling of the Olympics). 

Also not helping the Australian Open’s case this year is the omission of Nadal’s name from the tournament bracket.  Nadal has been battling multiple lingering injuries over the past few years, this one bad enough to keep him out of the major.  Nadal’s absence clears an easier path for Djokovic to win his third straight Aussie Open title.

Even without Nadal, the Aussie Open is poised to give away the most prize money that they have ever given away.  Coco Vandeweghe made $29,100 for losing in the first round!  And no, she did not make that much because she is former NBA player, coach, and GM Kiki Vandeweghe's daughter.  The winner on both the women's and the men's side will receive a whopping $2.56 million for their victory!  Yes, tennis majors have equal prize money on both the women's and men's sides.

The Australian Open, though it may not be a huge ratings earner, still has appeal for sponsors.  Kia Motors is the tournament’s sole major sponsor.  ANZ, Rolex, and Jacob’s Creek are the Australian Open’s associate sponsors.  IBM rounds out the highest spending sponsors as the tournament’s official IT partner.

Tennis typically gets a bad reputation for being boring while also being a bit demographically skewed towards higher earners.  The people that do not watch tennis because they think that it’s boring (and probably have not watched in years because of their thoughts) are missing out on quite an era in tennis.  Men’s tennis is as strong as ever with Djokovic, Nadal (though injured), Roger Federer, and Andy Murray.  Also, Serena Williams is worth the price of admission all on her own. 

Even though the Australian Open is off to a relatively quiet start, flip to ESPN2 or click to ESPN3 and check out what you’re missing.  You may just enjoy what you see.

Follow Kevin Rossi on Twitter @kevin_rossi.