In response to a lawsuit by New Jersey, the Supreme Court has removed the federal ban on most States having sports gambling.
Supreme Court ruling allows states to legalize, regulate sports betting
Supreme Court ruling allows states to legalize, regulate sports betting
The United States Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) Monday, striking the law that prevented states from drafting their own regulations for local sports betting. The ruling will allow legal sportsbooks to begin operations throughout the country; it had previously only been allowed in grandfathered-in states Nevada, Oregon, Delaware, and Montana.
Murphy v. NCAA was a legal battle between the state of New Jersey and America’s major sports leagues. New Jersey argued legalization of sports gambling would allow the state to capture a new and significant stream of revenue from a practice already rampant in underground operations. The NCAA and its colleagues countered that the state’s legislation was a violation of PASPA — an argument that held up in federal court and twice on appeal before being heard by the Supreme Court on December 4, 2017. In the end, a 7-2 majority sided with state authority to legalize sports betting on a case-by-case basis.
In its ruling, the Court decided that PASPA’s provision prohibiting state authorization of sports gambling schemes violates the anti-commandeering rule. Furthermore, PASPA’s provision prohibiting state “licens[ing]” of sports gambling schemes also violates the anti-commandeering rule. In Justice Samuel Alito’s opinion, the Court ruled that, “Congress can be allowed to regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own.”
In short, without federal oversight, the rules governing sportsbooks fall to state legislations.