As reported by: The Courier News
An Assembly committee will hold hearings next week on a bill to legalize sports betting, but lawmakers need to overcome several hurdles before wagers can be placed on games. Federal law bans sports wagering in most states. However, lawmakers here are pushing sports betting as a way to stave off a budget deficit and to help Atlantic City casinos fight competition.

Assembly Speaker Albio Sires, D-West New York, now says he backs sports betting as a way to help ease what may be a $4 billion gap in the next state budget.

"Sports betting is a very intriguing idea that could help solidify the financial standing of Atlantic City's casinos while producing a new revenue stream for state programs that help seniors and residents with disabilities," said Sires in a statement issued Wednesday.

Acting Gov. Richard J. Codey is reviewing the sports betting bill and has not yet taken a position on it, a spokeswoman told a state newspaper.

Codey also has not directed the attorney general to challenge a federal law that would ban the state from legalizing sports betting, the newspaper reported.

The bill backed by Sires would raise $92.5 million for various programs by taxing an estimated $1 billion in bets. Bets would be made in person at a casino, and no wagers would be allowed on college or other amateur sports events.

Voters would be asked to approve sports gambling in a referendum, under the measure.

The federal Professional and Amateur Sports Protection Act bars all but four states from running legal bookmaking operations.

Federal law allows sports betting in Nevada, Oregon, Delaware and Montana, but only the first two states offer it. Nevada has full-service sports books, while Oregon has a state-run pro football pool during the season.

The federal government gave New Jersey the opportunity to legalize sports betting in 1994, but proponents could not gather enough support and the issue never made it to the ballot for voter approval.

Supporters say the state could overturn the federal law, and they are urging the attorney general to contest the issue.

Opponents say sports betting would increase problems with gambling. In May, the Assembly Tourism and Gaming Committee held a hearing on the issue that drew opposition from the NFL, whose representatives argued that increased sports betting would cause some to fear games would be fixed.

Last year nearly $2 billion was bet on sports in Nevada.

Now some lawmakers believe the increased revenue from sports betting would boost state coffers and make Atlantic City more attractive as a tourist destination. Casinos worry that increased competition from nearby states, including those that offer slot machines at racetracks, will cut revenues.