The United States Supreme court has ruled on the Murphy v. National Collegiate Athletic Association case. The Supreme Court ruled in favor of striking down a federal law banning states from allowing sports betting. The Supreme Court ruled that the Professional and Amateur Sports Protection Act which forbid state authorized sports gambling violated states’ rights.
Former New Jersey Gov. Chris Christie got the ball rolling in 2011 when the state passed a referendum allowing sports betting. The law was challenged by professional sports leagues who argued it would usher in a new era of fixing games and point-shaving, effectively threatening the integrity of the game. Supreme Court Justice Sam Alito who voted in favor of striking down PASPA had this to say:
“Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own,” Alito said. “Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not.”
The President of American Gaming Association also commented on the ruling:
“Today’s decision is a victory for the millions of Americans who seek to bet on sports in a safe and regulated manner. Today’s ruling makes it possible for states and sovereign tribal nations to give Americans what they want: an open, transparent, and responsible market for sports betting.”
Many proponents of the decision argued PASPA is out of touch with the current landscape of sports betting. The monopoly Nevada had on the industry created an underground market of illegal sports gambling with the presence and rapid growth of online gambling.
What you need to know:
Two big developments from sports gambling being legalized: 1. The audiences most affected will be international, young and mobile/social. All ripe markets. 2. It opens up new revenue streams by lifting restrictions for advertising on places such as casinos. Signage, sponsorships.
— Ian Rapoport (@RapSheet) May 14, 2018
The impact of the landmark ruling will open up the floodgates on sports gambling and allow many other states to get in on the action. The decision could open the door for as many as 25 states to pass similar laws permitting gambling on the outcome of sporting events. States will now be able to reap tax benefits of the 100 billion dollar industry that Nevada has had a stranglehold on since PASPA passed.
Before the court ruling, only four states were exempt from PASPA: Nevada, Delaware, Oregon, and Montana. All were grandfathered in because of previously adopted betting practices.
New Jersey officials are prepared to act in the upcoming weeks to implement the new gambling law. Many other states are expected to follow suit and launch similar efforts. The New Jersey law will only allow certain types of sports betting at casinos and racetracks, with a minimum age of 21.