September 1 launch of sports wagering in Delaware in jeopardy

Plans for the state of Delaware to begin taking sports bets took a hit today when a federal appeals court in Philadelphia ruled that the plans would violate the 1992 federal ban on sports wagering. Delaware was one of four states specifically exempted by the law because it previously offered a state sports-based lottery, but the court apparently agreed with attorneys from the major sports leagues that the state’s plan to accept single-game wagers on games was more than the exemption permitted.

The leagues were challenging the denial of an injunction by a federal judge that would have halted the wagers before the September 1 starting date. It is unclear at this time whether the ruling would stop all sports betting or whether the parlay system used in the 1976 lottery game could go forward. A similar option is in place in Ontario, Canada, where bettors must place a wager on two separate events and win both to be paid.

When asked by a federal judge what would happen if the panel permitted sports betting to go forward, and then it is later overturned, putting millions of dollars in wagers at risk, an attorney for the state of Delaware said “Caveat emptor," or “buyer beware.”

A spokesman for Delaware Governor Jack Markell was stunned.

"We were counting on this revenue to help balance our budget,’’ he said. “We’ll have to see what measures we need to take.”

Delware could take the case to the full appeals court for reconsideration or go directly to the U.S. Supreme Court, which would be a lengthy process.

A full explanation of the ruling will be issued later today. Read the August 31 edition of GGB News for complete coverage of this issue.

By Staff

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