Delaware Gov. Jack Markell signed a bill permitting sports wagering at the state's three racetracks into law on Thursday, but the measure will not go unchallenged by the NFL, which has filed a brief taking a position against the constitutionality of the state's sports lottery with the state's Supreme Court.

The new law, which also permits casino-style table games at the racetracks, allows sports-lottery wagering "in which the winners (of the game) are based on the outcome of any professional or collegiate sporting event, including racing, held within or without the state[.]" (The law prohibits wagering on events involving Delaware collegiate and amateur teams.) Delaware, along with Montana, Nevada and Oregon, is exempt from the Professional and Amateur Sports Protection Act (PASPA), a 1992 federal law that bans states from taking sports wagers.

Per Delaware's constitution, lotteries "under State control for the purpose of raising funds" are legal, and Markell, a Democrat, has indicated the expansion of gaming would bring more than $50 million into the state's coffers in fiscal year 2010, which starts on July 1, 2009. Delaware, like many other states, is trying to combat a budget deficit in the teeth of a recession.

"We expect that everyone involved in the administration of sports leagues - professional and college - will review this and evaluate its impact as other decisions are made by Delaware officials and the Delaware Supreme Court," NFL vice president of corporate communications Brian McCarthy said Friday.

The legal brief filed on behalf of the NFL by the Wilmington, Del. law firm of Morris Nichols Arsht & Tunnell makes the following arguments:

- The nature of the sports lottery is unclear, which does allow the Supreme Court to ascertain whether the game satisfies the elements of a lottery "as defined by well-established precedent." According to the brief, the three elements of a lottery are "generally recognized as being chance, prize and consideration." The NFL argues that it is unclear whether the sports lottery is a game of chance because of a lack of specifics about the Delaware sports lottery.

- The sports lottery is not a lottery, the brief argues, "because of the significant role that skill plays in such sports gambling."

- According to the NFL, the Delaware law may violate federal sports gaming law because the games "proposed by (Markell) would extend far beyond the particular sports lottery Delaware conducted briefly in 1976, which serves as the basis for Delaware's claimed exemption under PASPA."

The specific type of wagers to be offered via the Delaware sports lottery are not spelled out in the law, but a January 2008 memorandum written by the state's Office of Management and Budget suggested that "(for) legal reasons, all sports betting wagering would have to be parlay bets whereby the bettor must bet on the outcome of a minimum of two separate events or outcomes." The Supreme Court will hear oral arguments on the constitutionality of the sports lottery on May 21.

More than 30 years ago, the NFL sued unsuccessfully to stop Delaware from implementing its "Scorecard" lottery, which allowed bettors to wager on pro football contests via several parlay-card formats. However, Scorecard was scrapped after only one season. According to The New York Times, the game was cancelled on December 11, 1976 after wagering on "Touchdown 2," which required bettors to pick games against the spread, increased threefold over the previous week. The reason wagering soared? Sone of the Delaware lottery's lines differed significantly from those set in Las Vegas, a dream scenario for sharp gamblers. According to the Times, the state's attorney general ruled that the state's lottery commission still had to pay out the winning bets, which caused the commission to have to draw on its emergency funds.

The vast majority of the United States' legal sports wagering occurs in Nevada, but Montana also has gotten into the sports gaming business. It began offering fantasy football and fantasy auto racing wagering in 2008. Sports lottery wagering occurred in Oregon for almost 20 years, but the state abandoned it two years ago in an effort to win back NCAA tournament games and the revenue stemming from such events.

As the NFL tries to block Delaware from offering sports wagering, it has scored a victory on the federal level, as a bill recently sponsored by Rep. Barney Frank (D-Mass.) that would legalize Internet gambling specifically excludes sports wagering. The NFL, along with the NBA, NHL, NCAA and Major League Baseball, lobbied against sports gambling being included in the bill.

The NFL has long railed against gambling and has a strict anti-gambling policy for its personnel, including players. Also, the league forbids its personnel from any promotional work linked to gambling interests, including casinos.