Legal Sports Betting Is Coming To US, As New Jersey Wins Supreme Court Case

It’s game on for sports betting in New Jersey, and possibly the rest of the country too.
The state of New Jersey won its US Supreme Court case, as a majority of justices announced that the federal ban on sports wagering is unconstitutional.
More on the backstory of NJ sports betting as well as the Skilled and Amateur Sports Protection Act here. Formerly, single-game wagering was authorized in the united states only via the Nevada sports gambling industry.
Here’s the conclusion of the majority opinion:
The legalization of sports betting requires an important policy choice, but the decision is not ours to make. Congress can control sports gambling directly, but when it elects not to do so, each State is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it’s consistent with the Constitution. PASPA isn’t. PASPA”regulate[s] state governments’ law” of the citizens. …. The Constitution gives Congress no such power. The judgment of the Third Circuit is reversed.
The court said it reversed the decision of the US Third Circuit Court of Appeals. Complete opinion here.
SCOTUS affects on sports betting The real world applications of the verdict:
New Jersey can now proceed with its plans to legalize wagering. Some gambling centers in the country have suggested it could be only a matter of weeks before sportsbooks are operations. William Hill has said previously it would be reside within weeks in Monmouth Park.
West Virginia sports gambling and Mississippi sports betting are also prepared to proceed with laws on the books.
So can Pennsylvania, that legalized sports wagering in 2017. A PA sports gambling rollout there’s upward in the air, but may come later this year.
Sports gambling legislation progressing in several of nations might take effect immediately upon passage.
New Jersey seems set to move forward with legislation to govern sports gambling, today that PASPA is gone. Its initial law is what amounts to a”partial repeal” of its own sports betting prohibition, with unregulated wagering able to happen at the state’s casinos and tracks.
The New Jersey Department of Gaming Enforcement, which will oversee sports betting from the state, had no comment regarding the conclusion from SCOTUS today.
A quick timeline of the Situation New Jersey enacted a law in 2014 in which it partly repealed its sports betting ban. That law was an attempt to permit the nation’s casinos and horse betting tracks to offer sports wagering by operating around a federal law, the skilled and Amateur Sports Protection Act. That law bans single-game wagering out Nevada sports gambling.
The NCAA and the leading US pro sports leagues — NFL, NBA, MLB and NHL — along with the NCAA filed suit to stop the legislation from taking effect. The leagues have standing under PASPA to bring suits that authorize sports gambling.
On the next 3 years, New Jersey dropped in both federal district court and the US Third Circuit Court of Appeals. New Jersey then appealed the case to the US Supreme Courtin June. The Supreme Court agreed to listen to New Jersey’s appeal in the summer of 2017.
Oral arguments took place in December; many considered the hour of conversation between justices and counsel went well for New Jersey.
More from the sports betting decision
The decision in the event clocked in at 49 pages. Six justices joined the majority opinion written by Justice Samuel Alito. It had been joined by:
Chief Justice John Roberts
Justice Anthony Kennedy
Justice Elana Kagan
Justice Neil Gorsuch
Justice Clarence Thomas
Justice Stephen Breyer agreed with the majority in a separate view, while justices Sonia Sotomayor and Ruth Bader Ginsburg dissented. Breyer also joined the dissent in part.
The top-level takeaways
The vast majority opinion is really unequivocal in saying that PASPA is unconstitutional. Here is the quick digest of what SCOTUS actually said about PASPA Regarding the law:
When a State completely or partially repeals old legislation banning sports gambling schemes, it”authorize[s]” these schemes under PASPA.
PASPA’s provision forbidding state authorization of sport betting strategies violates the anticommandeering rule.
PASPA’s provision prohibiting state”licens[ing]” of sports betting strategies also violates the anticommandeering rule. It matters a direct order to the state legislature and suffers from precisely the same flaw as the prohibition of state consent. Therefore, this Court need not determine whether New Jersey’s 2014 law governs PASPA’s antilicensing provision.
No provision of PASPA is severable from the terms directly at issue.
The bottom line: PASPA is background.
Alito’s takeaways
Alito gives us a short history of gaming in america and PASPA before getting to the questions of law which were put in the front of the courtroom.
Alito said the idea that Congress had in mind what NJ did — a partial repeal — is dubious:
The Third Circuit couldn’t say that, if any, partial repeals are permitted. Respondents and the United States tell us that the PASPA ban on state authorization allows complete repeals, but beyond that they identify no clear line. It’s improbable that Congress meant to enact such a nebulous regime.
The state had argued that PASPA commandeered the state into keeping its prohibition on the books. And the court, through Alito, agreed.
The PASPA provision at issue hereprohibiting state authorization of sport gambling–violates the anticommandeering rule. That provision unequivocally dictates what a state legislature might and might not do.
Reaction to the NJ sports gambling case
This is some response from various corners:
American Gaming Association
“Today’s decision is a victory for the millions of Americans that attempt to bet on sports in a safe and controlled way. According to a Washington Post poll, a strong 55 percent of Americans believe it’s time to end the federal ban online sports gambling. Today’s judgment makes it possible for states and autonomous tribal nations to give Americans what they need: an open, transparent, and accountable market for sports gambling.
Through clever, efficient regulation that this new marketplace will protect consumers, maintain the integrity of those games we enjoy, enable law enforcement to fight illegal gambling, and generate new revenue for countries, sporting bodies, broadcasters and several others. The AGA stands ready to work with all stakeholders — states, tribes, sports leagues, and law enforcement — to make a new regulatory environment that capitalizes on this opportunity to engage enthusiasts and boost local economies.”
The NFL’s longstanding and unwavering dedication to protecting the integrity of the sport remains absolute. Congress has long-recognized the possible harms posed by sports betting to the ethics of sporting competitions and the public confidence in these events. Given that background, we intend to call on Congress again, this time to enact a core regulatory frame for legalized sports gambling. We also will work closely with our teams to make certain that any state attempts that move forward in the meantime protect our fans and the integrity of our sport.
“Now the United States Supreme Court issued a clear decision that PASPA is unconstitutional, reversing the lower courts that held otherwise. While we’re still reviewing the decision to comprehend the overall implications to school sports, we’ll correct sports wagering and championship policies to align with the direction from the court.”
Commissioner Adam Silver:
“Today’s decision by the Supreme Court opens the door for states to pass legislation legalizing sports gambling. We stay in favor of a national framework that will provide a uniform way of sports betting in countries that choose to allow it, but we’ll remain active in ongoing discussions with state legislatures. Regardless of the details of any future sports gambling law, the ethics of the game remains our greatest priority.”
And the players’ association:
“Today’s decision by the Supreme Court will significantly impact our game — indeed, all sports in this country. The NBPA is going to frequently together with another sports unions, work to make certain our players’ rights are safeguarded and promoted as we venture into this new land.”
Major League Baseball
“Today’s decision by the Supreme Court will have deep results on Major League Baseball. As each nation considers whether to allow sports gambling, we’ll continue to seek out the proper protections for our game, in partnership with other professional sports. Our most important priority is protecting the integrity of our matches. We’ll continue to support legislation that promotes air-tight coordination and partnerships between the state, the casino operators, as well as the governing bodies in athletics toward that objective.”
And the players’ association:
“The Court’s conclusion is monumental, with far-reaching implications for baseball players and the sport we love. From complicated intellectual property questions to the simplest issues of gamers security, the realities of widespread sports betting must be addressed urgently and thoughtfully to prevent putting our game’s integrity in danger as states proceed with legalization.”
PGA Tour
“Following the Supreme Court’s ruling today, the PGA TOUR reiterates its support of the regulation of sports betting in a secure and responsible manner. We think that law is the most effective method of ensuring integrity in competition, protecting customers, engaging fans and creating revenue for government, operators and leagues. We stay aligned with the NBA and MLB in this area, and we are going to continue with our collective efforts to work with legislators, regulators, operators and others in the industry on regulation that serves the interests of all involved.”
The no. 2 man under MGM Resorts CEO Jim Murren spoke to Bloomberg:
“We consider in the subsequent two years to 3 decades, there are 10 to 12 states that are ripe and ready to activate that,” MGM President William Hornbuckle said. “We will be there. We’ll take part in it. We deliver technology. We bring awareness. And in this space, we bring trust”
888 Holdings
Itai Frieberger, CEO of 888:
“888 has been keeping a very close eye on regulatory developments in america and welcomes today’s announcement as a significant step forward in the possible regulation of the US market. The potential for sports gambling in the united states is important and, as the sole operator in all three regulated US states, we consider 888 is distinctively positioned to exploit the potential growth opportunities in america market that today’s ruling opens up”
Rep. Frank Pallone
Pallone is a Congressman from New Jersey that has championed sports betting bills at the national level:
“The Supreme Court’s ruling is a win for New Jersey and the rest of the nation. PASPA was obviously unconstitutional, and the ban on sports betting has rightfully been rejected by the Court. I’ve long believed that New Jersey should have the chance to proceed with sports betting. Now the Supreme Court has struck down this unlawful and confusing law, now is the time for Congress to maneuver the GAME Act forward to ensure that consumer protections are in place in almost any nation that decides to execute sports betting.”
Rep. Dina Titus
Titus represents Nevada in Congress.
“Now the Supreme Court has confirmed states’ rights when it comes to sports betting and opened the door for controlled sports betting in states across the country,” stated Representative Titus. “A controlled market is obviously better than an unregulated one. As the representative for Las Vegas I’ve seen the success of this booming, controlled sports gambling market in Nevada. The skilled and Amateur Sports Protection Act has spawned a $150 billion yearly illegal sports gambling market that lacks customer protections, which is ripe for manipulation, fuels other illegal activities, and jeopardizes the integrity of sports leagues.
In the forthcoming weeks, I will be working together with key stakeholders and industry experts to help educate my colleagues on what this means for their states and what they can learn from the golden standard set in Nevada. Allowing states and tribal sovereign governments to legalize sports gambling could boost local economies, raise state revenues, and better protect both consumers and the industry, with Nevada revealing the way. Las Vegas will still be the premier destination for sports betting, and Nevada will export its experience. The Supreme Court now also sends a clear message to the Department of Justice that can be applied to other states’ rights issues like marijuana.”
New York
Here is Sen. John Bonacic, Who’s sponsoring legislation to legalize wagering in his nation:
“New York has been preparing for this moment since as far back as 2013 and now we’ve remained proactive in expectation of this conclusion by the Court. The Senate Racing, Gaming and Wagering Committee held a public hearing in January that brought together stakeholders from across the gaming spectrum to discuss this issue in depth.
Since that moment, I have introduced legislation which has passed committee and proceeded to have productive discussions concerning the issue. I am confident that working together with my colleagues in both the Senate and Assembly, we may have a bill ready for Governor’s signature from the end of the session.”
Pechanga Tribe
“We see sports gambling as a potential amenity that would complement our many offerings. Now that the Court has ruled, we look forward to engaging in a conversation with fellow tribal leaders, policymakers, and industry stakeholders to see if there is a route forward for sports betting from California.”
California Nations Indian Gaming Association
Chairman Steve Stallings:
Moving forward it’ll take an amendment to the California Constitution to permit any kind of sport wagering. In doing so, we’d advise the country to move slowly and carefully and analyze all angles because it relates to sports gambling. As the condition of California weighs the decision of whether to allow for the practice of sports wagering, we firmly ask that tribes have a spot at the table in all discussions surrounding this problem.
In addition, we wish to make very clear that California voters have, on numerous occasions, confirmed the exclusive right of California tribal governments to run casino-style games. Legalization of sports betting shouldn’t develop into a back-door method to infringe upon that exclusivity.
A powerful, well-regulated gaming sector is of extreme importance to California’s tribal authorities and the public. Assessing the integrity of the gaming industry protects California and is our true North Star that guides all of our stances and conclusion DraftKings and FanDuel
The two daily fantasy sports sites are eyeing legal sports wagering and that interest will increase now. DraftKings had already declared its intention to provide sports wagering:
“The Supreme Court’s conclusion, which paves the way for states to legalize sports gambling, creates an enormous opportunity for FanDuel as our stage, brand, and customer base supply a special and compelling foundation to meaningfully participate.
At our center, we’re a business that makes sports more exciting. In the same way we revolutionized fantasy sports, we will bring innovation to the sport gambling space. This decision makes it possible for us to attract the fire and participation we have observed one of our customers to new and enlarged marketplaces and create a sports gaming product which fans will love. FanDuel is and will continue to be the best portable destination for every sports fan.”
DraftKings CEO Jason Robins:
“Our mission has always been to bring fans closer to the sports that they love and today, thanks to the wisdom of the Supreme Court, DraftKings will be able to exploit our proven technologies to provide our customers with revolutionary online sports betting products. This ruling gives us the capacity to further diversify our product offerings and build on our unique capability to drive fan participation.”

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