Rep. Frank Pallone OCEANPORT — Rep. Frank Pallone (D-6th District) is hoping New Jersey will become the fifth state to allow legalized sports betting, something he said would bring in huge revenues.

Pallone said in an interview last week that he is sponsoring a House bill that would allow New Jersey to join Nevada, Oregon, Montana and Delaware as a state exempt from a federal ban on sports betting that, if it is legalized, would provide jobs and revenue to the state.

“It’s going to create jobs,” he said. “Alot of this exists now illegally, and so what we are trying to do is have it become legal and have the state benefit.”

Pallone cited a study by Nevada based sportsbook Club Cal Neva that claims the state would see $1.3 billion in gross revenues and an additional $120 million in tax revenues if sportsbetting is legalized.

In November, New Jersey voters overwhelmingly supported a nonbinding referendum, with almost two-thirds of voters saying they support legalizing sports betting at casinos and racetracks in the state.

Support in Monmouth County was particularly strong with more than 64,000 supporters voting versus 28,000 detractors.

In January, sports betting cleared another hurdle when state legislators approved a bill sponsored by Sen. Raymond Lesniak (D- 20th District) that would legalize the measure if the federal ban is lifted.

Sen. Jennifer Beck (R-11th District), a co-sponsor with Lesniak, said the bill was passed even though the federal ban is still in place so that the state could be prepared for the eventual reinstatement of sports wagering.

“New Jersey wants to have all of the right legal elements in place so that if the federal ban is lifted we can hit the ground running,” said Beck, who has been a strong advocate for the state’s horse racing industry and Monmouth Park in Oceanport.

Pallone explained that his bill, currently in the Subcommittee on Courts, Commercial and Administrative Law, part of the Committee on the Judiciary, would exempt the state from the federal ban. If the measure is approved, state legislators would decide how to implement sports betting.

“Then the Legislature can determine what type of sports betting, and Senator Lesniak’s bill was passed that would allow it at Atlantic City casinos and at the racetracks,” Pallone said. “They can go with the current bill that passed or they can expand it and include online, too.”

Under Lesniak’s legislation, Atlantic City casinos and racetracks across the state would be allowed to conduct wagering on both college and professional sports.

However, the bill would prohibit wagering on any sporting event held in New Jersey and on any event a New Jersey college team participates in regardless of location.

Under the bill, the Casino Control Commission and the Division of Gaming Enforcement would regulate sports wagering.

Revenues collected from sports wagering would be subject to an 8 percent gross revenue tax, which is already in place for casino gambling.

Pallone explained that the referendum prompted both him and Lesniak to take action.

“I think that the referendum spurred both the state legislation and [federal],” Pallone said. “Now we know that people are overwhelmingly supportive, and that is one of the arguments I’ll use.

“Why should a state where we voted over 2 to 1 not be allowed to do this?” he asked.

“The voters have spoken.”

Pallone predicted that legalized sports betting would particularly benefit Monmouth Park racetrack, which has an uncertain future due to financial constraints and the fact that Gov. Chris Christie has threatened closure if a private lease agreement isn’t reached for the park.

“That is one of the reasons the state specifies that it is the state’s casinos and tracks,” he said. “I think it will help Monmouth Park significantly and will be another reason to keep Monmouth Park open.”

Beck explained that legalized sports wagering would attract another group of sports fans to Monmouth Park that wouldn’t otherwise go.

“Right now they have simulcasting at Monmouth Park and this would just bring more foot traffic into Monmouth Park,” she said. “It would be another form of entertainment for people.

“If you are not someone who follows horse racing but you are someone who follows college basketball this might be an attraction for you.”

One possible stumbling block for the bill is that the professional sports leagues and the NCAA oppose any such measure.

Beck said that representatives from the NFL testified at committee hearings on the bills but called their opposition hypocritical.

“Watch any football game on a Sunday and they give you the spread,” she said. “People are casting bets left and right on their fantasy football team so it is hypocritical for them to come out in opposition.

“It is happening every day right under their nose and, really, it is a way of life.”

Pallone said that one of the driving forces behind his bill is the amount of illegal online and offshore gambling currently being placed in the U.S.

“I think that is why it makes sense to tap into this, because a lot of this is going on anyway,” he said. “The state doesn’t get any of the revenue because it is all illegal.”

He said that he is currently looking at the bill as a stand-alone bill but did not rule out adding the measure to other legislation.

“One of the issues right now is online gaming, so it is possible that this could be attached to a bill that deals with online gaming,” he said. “I have to try to get the votes to pass, and that’s the issue.”

“One option is to attach this to something else and not necessarily have it as a free- standing bill,” he said, “if I see something else moving I can attach it to.”

Rep. Frank LoBiondo (R-2nd District) introduced a competing bill that would eliminate the federal ban on sports betting across the country.

Pallone said he’d work with LoBiondo on crafting legislation but also said that his bill might have an easier time getting through Congress.

“He’s introduced a bill that would basically repeal the prohibition and allow sports betting nationwide,” he said. “We will work together, but my own view is that it is probably easier to get an exemption for New Jersey than repeal it for the whole country.”

The federal government enacted the sports betting ban in 1992, giving states a year to opt out of the ban. Of the four states currently exempt, only Nevada has largescale sports betting and the other three states currently have limited wagering.