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

It’s game on for sports betting from New Jersey, and perhaps 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 on NJ’s backstory sports betting as well as the Skilled and Amateur Sports Protection Act here. Previously, single-game wagering was authorized in the US only through the Nevada sports betting industry.
Here is the conclusion of the Vast Majority opinion:
The legalization of sport betting requires a significant policy decision, but the decision is not ours to make. Congress can control sports betting right, but if it elects not to do so, each State is free to act by itself. Our job is to translate the legislation Congress has enacted and choose whether it’s consistent with the Constitution. PASPA isn’t. PASPA”govern [s] state governments’ law” of their citizens. …. The Constitution gives Congress no such power. The conclusion of the Third Circuit is reversed.
The court said that it reversed the decision of the US Third Circuit Court of Appeals. Complete opinion here.
SCOTUS impacts on sports betting The real-world software of the verdict:
New Jersey can now proceed with its own plans to legalize wagering. Some gambling centers in the country have indicated it could be just a matter of weeks until sportsbooks are surgeries. William Hill has said previously it would be reside within weeks in Monmouth Park.
West Virginia sports betting and Mississippi sports gambling will also be well prepared to move forward with laws on the books.
So can Pennsylvania, that legalized sports wagering in 2017. A PA sports betting rollout there is upward in the air, but may come later this year.
Sports betting legislation advancing in several of nations might take effect immediately upon passage.
New Jersey appears set to proceed with legislation to govern sports betting, now that PASPA has been gone. Its initial law is what amounts to a”partial repeal” of its own sports betting prohibition, with unregulated wagering capable to take place at the state’s tracks and casinos.
The New Jersey Department of Gaming Enforcement, that will oversee sports gambling from the state, had no comment regarding the conclusion from SCOTUS today.
A Fast timeline of the Situation New Jersey enacted a law in 2014 in which it partially repealed its own sports gambling ban. That law has been an attempt to permit the state’s casinos and horse betting tracks to offer sports wagering by working around a federal law, the Professional and Amateur Sports Protection Act. That law bans single-game wagering out of Nevada sports gambling.
The NCAA and the leading US professional sports leagues — NFL, NBA, MLB and NHL — along with all the NCAA filed suit to stop the legislation from taking effect. The leagues have standing under PASPA to bring suits that authorize sports betting.
On the next three Decades, New Jersey lost in the federal district court and the US Third Circuit Court of Appeals. New Jersey subsequently appealed the case to the US Supreme Court. 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 dialogue 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 had been 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 view, while justices Sonia Sotomayor and Ruth Bader Ginsburg dissented. Breyer also joined the dissent in part.
The top notch takeaways
The majority opinion is really unequivocal in stating that PASPA is unconstitutional. Here is the quick digest of what SCOTUS really said about PASPA Regarding the law:
When a State partially or completely repeals old laws banning sports gambling schemes, it”authorize[s]” these schemes under PASPA.
PASPA’s provision forbidding state authorization of sports betting schemes violates the anticommandeering rule.
PASPA’s provision prohibiting state”licens[ing]” of sport betting schemes 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. 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 provisions right at issue.
The bottom line: PASPA is history.
Alito’s takeaways
Alito gives us a short history of gambling in america and PASPA before getting into the questions of legislation that were placed 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 couldn’t say which, if any, partial repeals are permitted. 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 is improbable that Congress meant to enact this kind of nebulous regime.
The state had argued that PASPA commandeered the state into maintaining its prohibition on the books. And the court, via Alito, agreed.
The PASPA provision at issue hereprohibiting state authorization of sport gambling–violates the anticommandeering rule. That supply unequivocally dictates exactly what a state legislature might and might not do.
Reaction to the NJ sports betting case
This is some response from 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 regulated way. According to a Washington Post poll, a strong 55 percent of Americans think it’s time to end the federal ban online sports betting. 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 betting.
Through smart, efficient regulation this new market will protect consumers, preserve the integrity of those games we love, empower law enforcement to fight illegal gambling, and create new revenue for states, sporting bodies, broadcasters and several more. The AGA stands prepared to work with all stakeholders — tribes, states, sports leagues, and law enforcement — to create a new regulatory environment that capitalizes on this chance to engage enthusiasts and boost local economies.”
NFL
The NFL’s long-standing and unwavering commitment to protecting the integrity of the game remains intact. Congress has long-recognized the possible harms posed by sports gambling to the ethics of sporting contests and the public confidence in these events. Given that history, we intend to call on Congress again, this time to enact a heart regulatory framework for legalized sports gambling. We will work closely with our clubs to ensure that any state efforts that proceed in the meantime shield our lovers and the ethics of our game.
NCAA
“Today the United States Supreme Court issued a clear conclusion that PASPA is unconstitutional, reversing the lower courts which held otherwise. While we’re still reviewing the decision to comprehend the general implications to college sports, we’ll 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 laws legalizing sports betting. We stay in favor of a federal framework that will offer a uniform way of sports gambling in states that choose to allow it, but we will stay active in ongoing discussions with state legislatures. Irrespective of the details of any future sports gambling law, the integrity of the sport remains our greatest priority.”
Along with the players’ association:
“Today’s decision by the Supreme Court will significantly impact our sport — indeed, all sports in this country. The NBPA will, often together with the other sports unions, work to ensure that our players’ rights are protected and encouraged as we venture into this new land.”
Major League Baseball
“Today’s decision by the Supreme Court will have deep effects on Major League Baseball. As each state considers whether to let sports betting, we’ll continue to seek the appropriate protections for our sport, in partnership with other professional sports. Our main priority is protecting the integrity of the games. We’ll continue to support legislation which promotes air-tight coordination and partnerships between the state, the casino operators, and the regulating bodies in athletics toward that objective.”
And the players’ association:
“The Court’s conclusion is monumental, with far-reaching consequences for baseball players and the sport we love. From complex intellectual property questions to the most basic topics of gamers safety, the realities of widespread sports gambling must be addressed urgently and thoughtfully to avoid putting our sport’s integrity at risk as states continue with legalization.”
PGA Tour
“Following the Supreme Court’s ruling now, the PGA TOUR reiterates its support of the regulation of sports gambling in a safe and responsible way. We believe that regulation is the best method of ensuring integrity in competition, protecting consumers, engaging enthusiasts and generating revenue for authorities, leagues and operators. We remain 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 industry on regulation which serves the interests of all involved.”
MGM
The no. 2 guy under MGM Resorts CEO Jim Murren spoke to Bloomberg:
“We consider in the next two years to three years, there are 10 to 12 states that are ripe and ready to trigger that,” MGM President William Hornbuckle said. “We’ll be there. We’ll take part in it. We bring technology. We bring knowledge. And in this area, we bring trust.”
888 Holdings
Itai Frieberger, CEO of 888:
“888 has been keeping a very close eye on regulatory improvements in america and welcomes today’s announcement as a significant step forward in the possible regulation of the US marketplace. The potential for sports betting in the US is important and, as the only operator at all three regulated US states*, we believe 888 is uniquely positioned to exploit the potential growth opportunities in the US market that today’s ruling opens up”
Rep. Frank Pallone
Pallone is a Congressman from New Jersey that has championed sports gambling bills at the federal level:
“The Supreme Court’s ruling is a win for New Jersey and the rest of the nation. PASPA was clearly unconstitutional, and the ban online sports gambling has rightfully been reversed by the Court. I have long thought that New Jersey should have the chance to proceed with sports gambling. Now that the Supreme Court has struck down this criminal and confusing law, it is time for Congress to maneuver 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.
“Now the Supreme Court has affirmed states’ rights in regards to sports betting and opened the door for regulated sports betting in states throughout the country,” stated Representative Titus. “A controlled market is always better than an unregulated one. As the agent for Las Vegas I have observed the success of the booming, controlled sports betting market in Nevada. The skilled and Amateur Sports Protection Act has spawned a $150 billion yearly illegal sports betting market that lacks consumer protections, which is ripe for manipulation, fuels other illicit actions, and jeopardizes the integrity of sports leagues.
In the coming weeks, I will be working with key stakeholders and business experts to help educate my colleagues on what this implies for their states and what they are able to learn from the golden standard set in Nevada. Allowing countries and tribal sovereign governments to legalize sports betting could boost local markets, raise state revenues, and better protect both customers and the market, with Nevada revealing how. Las Vegas will still be the best destination for sports betting, and Nevada can export its own expertise. The Supreme Court today also sends a very clear message to the Department of Justice that may be applied to other nations’ rights problems like bud.”
New York
This is Sen. John Bonacic, who is sponsoring legislation to legalize wagering in his nation:
“New York was preparing for this moment since as far back as 2013 and now we have remained proactive in anticipation of the decision by the Court. The Senate Racing, Gaming and Wagering Committee held a public hearing in January that brought together stakeholders from throughout the gaming spectrum to discuss this issue in depth.
Since that moment, I have introduced legislation which has passed committee and continued to have productive discussions concerning the issue. I am confident that working together with my colleagues in both the Senate and Assembly, we can have a bill ready for Governor’s signature from the end of the session”
Pechanga Tribe
“We see sports gambling as a possible amenity that will complement our numerous offerings. Now the Court has ruled, we anticipate engaging in a dialogue with fellow tribal leaders, policymakers, and industry stakeholders to see whether there’s a route forward for sports gambling from California.”
California Nations Indian Gaming Association
Chairman Steve Stallings:
Moving ahead it’ll take an amendment to the California Constitution to allow any kind of sports wagering. In doing this, we would advise the country to proceed slowly and cautiously and examine all angles as it relates to sports gambling. As the state of California weighs the decision of whether to permit for the practice of sports wagering, we firmly request that tribes have a place at the table in any and all discussions surrounding the issue.
In addition, we want 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 gambling shouldn’t develop into a back-door way to infringe upon that exclusivity.
A strong, well-regulated gaming industry is of utmost importance to California’s tribal authorities and the general public. Assessing the integrity of the gaming business protects California and is our authentic North Star that guides all of our stances and decision DraftKings and FanDuel
Both daily fantasy sports websites have been eyeing legal sports wagering and that interest increases today. DraftKings had already declared its intention to provide sports wagering:
FanDuel:
“The Supreme Court’s conclusion, which paves the way for states to legalize sports betting, creates an enormous opportunity for FanDuel as our platform, brand, and customer base provide a special and compelling foundation to meaningfully participate.
At our core, we are a company that makes sports more exciting. In the exact same manner we revolutionized fantasy sports, we will bring innovation to the sport betting space. This choice allows us to attract the fire and participation we have seen one of our users to new and enlarged marketplaces and create a sports gaming product which fans will love. FanDuel is and will continue to be the best mobile destination for every sports enthusiast.”
DraftKings CEO Jason Robins:
“Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will have the ability to harness our proven technologies to provide our clients with revolutionary online sports gambling products. This judgment gives us the ability to further diversify our product offerings and build on our distinctive capability to drive fan engagement.”

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