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

It’s game on for sports gambling in New Jersey, and possibly the rest of the nation as well.
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 about NJ’s backstory sports gambling as well as the Skilled and Amateur Sports Protection Act here. Formerly, single-game wagering was legal in the US only through the Nevada sports gambling industry.
Here is the conclusion of the majority opinion:
The legalization of sport betting requires an important policy decision, but the decision is not ours to create. Congress can control sports betting right, but if it elects not to do so, every State is free to act on its own. Our job is to translate the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA isn’t. PASPA”govern [s] state governments’ law” of the citizens. …. The Constitution gives Congress no such power. The conclusion of the Third Circuit is reversed.
The court said it reversed the decision of the US Third Circuit Court of Appeals. Full opinion here.
SCOTUS impacts on sports betting The real-world applications of the verdict:
New Jersey can now move forward with its own plans to legalize wagering. Some gaming centers in the country have suggested it could be only a matter of weeks until sportsbooks are surgeries. William Hill has stated previously it would be reside within weeks at Monmouth Park.
West Virginia sports betting and Mississippi sports betting will also be prepared to move forward with laws on the books.
So can Pennsylvania, that legalized sports wagering in 2017. A PA sports gambling rollout there’s up in the air, but may come later this year.
Sports gambling legislation progressing in a number of states can take effect immediately upon passage.
New Jersey appears set to move forward with legislation to regulate sports gambling, now that PASPA is gone. Its first law is what amounts to a”partial repeal” of its sports gambling prohibition, with unregulated wagering capable to take place at the country’s tracks and casinos.
The New Jersey Department of Gaming Enforcement, that will oversee sports betting in the state, had no comment on the conclusion from SCOTUS today.
A Fast timeline of the case New Jersey enacted a law in 2014 in which it partially repealed its own sports betting ban. That law has been an effort to allow the state’s casinos and horse betting paths to offer sports wagering by working on a federal law, the Professional and Amateur Sports Protection Act. That law prohibits single-game wagering out Nevada sports betting.
The NCAA and the major US pro sports leagues — NFL, NBA, MLB and NHL — along with the NCAA filed suit to stop the law from taking effect. The leagues have standing under PASPA to bring suits that authorize sports betting.
Over the next three years, New Jersey lost 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 hear New Jersey’s appeal in the summer of 2017.
Oral arguments took place in December; many considered the hour of conversation between justices and counselor went well for New Jersey.
More from the sports betting decision
The choice in the case clocked in at 49 pages. Six justices joined the majority opinion written by Justice Samuel Alito. It was joined by:
Chief Justice John Roberts
Justice Anthony Kennedy
Justice Elana Kagan
Justice Neil Gorsuch
Justice Clarence Thomas
Justice Stephen Breyer concurred with the majority in a different opinion, while justices Sonia Sotomayor and Ruth Bader Ginsburg dissented. Breyer also joined the dissent in part.
The top notch takeaways
The vast majority opinion is really unequivocal in saying that PASPA is unconstitutional. Here’s the quick digest of what SCOTUS actually said about PASPA in terms of the law:
When a State completely or partially repeals old laws banning sports gambling strategies, it”authorize[s]” those schemes under PASPA.
PASPA’s provision forbidding state authorization of sports gambling strategies violates the anticommandeering rule.
PASPA’s provision prohibiting state”licens[ing]” of sport betting strategies also violates the anticommandeering rule. It issues a direct order to the state legislature and suffers from the same defect as the prohibition of state consent. Thus, this Court need not determine whether New Jersey’s 2014 law violates PASPA’s antilicensing provision.
No supply of PASPA is severable from the terms right at issue.
The bottom line: PASPA is background.
Alito’s takeaways
Alito gives us a short history of gambling in america and PASPA before getting into the questions of legislation which were put in the front of the court.
Alito said the idea that Congress had in mind exactly what NJ did — a partial repeal — is dubious:
The Third Circuit could not say that, if any, partial repeals are allowed. Respondents and the United States tell us that the PASPA ban on state consent permits complete repeals, but beyond which they identify no obvious line. It’s improbable that Congress meant to enact such a nebulous regime.
The state had argued that PASPA commandeered the state into maintaining its prohibition on the books. Along with the court, through Alito, agreed.
The PASPA supply at issue here–prohibiting state authorization of sports gambling–violates the anticommandeering rule. That supply unequivocally dictates exactly what a state legislature might and might not do.
Reaction to the NJ sports gambling case
Here is some reaction from corners:
American Gaming Association
“Today’s decision is a victory for the millions of Americans that attempt to bet on sports in a secure and regulated way. According to a Washington Post poll, a strong 55 percent of Americans think it is time to end the federal ban online sports betting. Today’s judgment makes it possible for states and sovereign tribal nations to give Americans what they need: an open, transparent, and accountable market for sports gambling.
Through clever, efficient regulation this new market will protect consumers, maintain the integrity of the games we enjoy, enable law enforcement to fight illegal gambling, and generate new revenue for states, sporting bodies, broadcasters and many others. The AGA stands ready to work together with stakeholders — states, tribes, sports leagues, and law enforcement — to create a new regulatory environment that capitalizes on this opportunity to participate enthusiasts and boost local economies.”
NFL
The NFL’s longstanding and unwavering commitment to protecting the integrity of our sport remains absolute. Congress has long-recognized the potential harms posed by sports gambling to the integrity of sporting competitions as well as the public confidence in these types of events. Given that history, we intend to call on Congress again, this time to enact a heart regulatory framework for legalized sports gambling. We also will work closely with our clubs to make certain that any state efforts that proceed in the meantime shield our lovers and the integrity of our game.
NCAA
“Today the United States Supreme Court issued a crystal clear conclusion that PASPA is unconstitutional, reversing the lower courts which held otherwise. While we are still reviewing the decision to understand the overall implications to college sports, we will adjust sports wagering and championship policies to align with the direction from the court.”
NBA
Commissioner Adam Silver:
“Today’s decision by the Supreme Court opens the door for states to pass legislation legalizing sports betting. We remain in favor of a national framework that will offer a uniform way of sports gambling in countries that choose to permit it, but we’ll remain active in continuing discussions with state legislatures. Regardless of the particulars of any future sports gambling law, the integrity of the game remains our highest priority.”
Along with the players’ association:
“Today’s decision by the Supreme Court will significantly impact our game — really, all sports in this country. The NBPA is going to often in conjunction with another sports unionswork to ensure our players’ rights are protected and promoted as we venture into this new land.”
Major League Baseball
“Today’s decision by the Supreme Court will have profound results on Major League Baseball. As every state considers whether to let sports gambling, we will continue to seek the proper protections for our sport, in partnership with other specialist sports. Our main priority is protecting the integrity of the matches. We will continue to support legislation which promotes air-tight coordination and partnerships between the nation, the casino operators, and the governing bodies in sports toward this goal.”
And the players’ association:
“The Court’s decision is massive, with far-reaching implications for baseball players and the sport we love. From complicated intellectual property inquiries to the simplest topics of players security, the realities of sports gambling must be addressed and thoughtfully to avoid placing our sport’s integrity in danger as conditions proceed with legalization.”
PGA Tour
“Following the Supreme Court’s ruling now, the PGA TOUR reiterates its support of the regulation of sports betting in a secure and responsible way. We believe that law is the best way of ensuring integrity in competition, protecting customers, engaging fans and creating revenue for government, leagues and operators. We stay aligned with the NBA and MLB in this area, and we will continue with our collective efforts to work with legislators, operators, regulators and others in the sector on regulation which serves the interests of all involved.”
MGM
The no. 2 guy under MGM Resorts CEO Jim Murren talked to Bloomberg:
“We consider in the next two years to three decades, we’re 10 to 12 states that are mature and ready to trigger on that,” MGM President William Hornbuckle said. “We’ll be there. We will take part in it. We deliver technology. We bring awareness. And frankly in this space, we bring hope ”
888 Holdings
Itai Frieberger, CEO of 888:
“888 continues to be keeping a very close eye on regulatory improvements in the US and welcomes today’s announcement as an important step forward in the potential regulation of the US marketplace. The potential for sports betting in the US is important and, since the only operator in all three regulated US states*, we believe 888 is distinctively positioned to exploit the potential growth opportunities in the US marketplace 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, along with the ban online sports gambling has rightfully been reversed by the Court. I’ve long believed that New Jersey should have the opportunity to proceed with sports gambling. Now that the Supreme Court has struck down this criminal and perplexing law, now is the time for Congress to move the GAME Act ahead to ensure that consumer protections are set up in any nation that decides to execute sports betting.”
Rep. Dina Titus
Titus represents Nevada in Congress.
“Today the Supreme Court has affirmed states’ rights in regards to sports gambling and opened the door for regulated sports gambling in states throughout the country,” stated Representative Titus. “A regulated market is always better than an unregulated one. As the representative for Las Vegas I’ve seen the success of the flourishing, controlled sports betting market in Nevada. The Professional and Amateur Sports Protection Act has spawned a $150 billion annual illegal sports betting market that lacks customer protections, is ripe for manipulation, fuels other illegal actions, and jeopardizes the integrity of sport leagues.
In the forthcoming weeks, I’ll be working with key stakeholders and industry specialists to help educate my colleagues on what this means for their states and what they can learn from the gold standard set in Nevada. Allowing states and tribal sovereign governments to legalize sports gambling could boost local markets, raise state revenues, and better protect both customers and the industry, with Nevada showing the way. Las Vegas will still be the premier destination for sports gambling, and Nevada can export its experience. The Supreme Court today also sends a very clear message to the Department of Justice that can be applied to some other nations’ rights issues like bud.”
New York
Here is Sen. John Bonacic, who is sponsoring legislation to legalize wagering in his state:
“New York was preparing for this moment since as far back as 2013 and we’ve stayed proactive in anticipation of this decision 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 explore this issue in depth.
Since that moment, I’ve introduced legislation that has passed committee and proceeded to have productive discussions regarding the issue. I am confident that working with my colleagues in both the Senate and Assembly, we can have a bill ready for Governor’s signature by the end of the session”
Pechanga Tribe
“We view sports betting as a potential amenity that would complement our many offerings. Now that the Court has ruled, we look forward to participating in a conversation with fellow tribal leaders, policymakers, and industry stakeholders to find out whether there’s a path forward for sports gambling in California.”
California Nations Indian Gaming Association
Chairman Steve Stallings:
Moving ahead it will take a change to the California Constitution to allow any form of sport wagering. In doing this, we would advise the country to proceed slowly and cautiously and examine all angles because it relates to sports betting. As the condition of California weighs the decision of whether to permit for the practice of sports wagering, we firmly request that tribes have a spot at the table in all discussions surrounding this problem.
In addition, we wish to make quite clear that California voters have, on numerous occasions, confirmed the exclusive right of California tribal authorities to operate casino-style games. Legalization of sports betting shouldn’t develop into a back-door method to infringe upon that exclusivity.
A strong, well-regulated gaming sector is of extreme importance to California’s tribal governments and the general public. Protecting the integrity of the gambling business protects California and is our authentic North Star that guides each of our stances and decision DraftKings and FanDuel
Both daily fantasy sports sites are eyeing legal sports wagering and that interest will increase today. DraftKings had already announced its intention to offer sports wagering:
FanDuel:
“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 provide a special and compelling foundation to participate.
At our center, we’re a business which makes sports more exciting. In precisely the same manner we revolutionized fantasy sports, we will bring innovation to the sports gambling space. This decision allows us to attract the fire and participation we’ve observed among our customers to new and enlarged marketplaces and create a sports betting product that fans will love. FanDuel is and will continue to be the premier portable destination for every sports enthusiast.”
DraftKings CEO Jason Robins:
“Our mission has always been to bring fans closer to the sport that they love and today, due to the wisdom of the Supreme Court, DraftKings is going to be able to harness our proven technology to provide our clients with revolutionary online sports gambling products. This judgment gives us the capacity to further enhance our product offerings and build on our unique capability to drive fan engagement.”

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