Case 1:25-cv-02152-ESK-MJS Document 15 Filed 04/18/25 Page 14 of 51 PageID: 135
In 2011, New Jerseyans again voted to amend the state Constitution to permit sports wagering, with one caveat, intended to protects students from the potentially harmful effects of sports betting: “wagering shall not be permitted on a college sport or athletic event that takes place in New Jersey or on a sport or athletic event in which any New Jersey college team participates regardless of where the event takes place.” N.J. Const. art. IV, § 7, ¶ 2(D). The next major developments came just seven years later. In 2018, the Supreme Court in Mur- phy , held that a federal law prohibiting the state authorization of sports wagering violated the U.S. Constitution and observed that Congress had not elected to directly regulate sports wagering. 584 U.S. at 486. The New Jersey Legislature then swiftly enacted the Sports Wagering Act, N.J. Stat. Ann. §§ 5:12A-10 to - 19. Under the Act, casinos and racetracks may obtain sports wagering licenses to “operate a sports pool” in accordance with the Act and its regulations. Id. § 5:12A-11(a). A “sports pool” is defined as “the business of accepting wagers on any sports event by any system or method of wagering,” including “exchange wagering.” Id. § 5:12A-10. And the holder of a sports wagering license “may authorize an internet sports pool operator” to “operate an online sports pool on its behalf provided the terms of the agreement are approved by the [D]ivision [of Gaming Enforcement].” Id. § 5:12A-11(a); see also N.J. Stat. Ann. § 5:12- 104(a)(12), (13). Conversely, “[n]o sports pool or online sports pool shall be of- fered or made available for wagering to the public by any entity other than a sports wagering licensee” or “an Internet sports pool operator, on behalf of a sports wagering licensee.” Id. § 5:12A-11(c).
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