It’s game on for sports gambling 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 national ban on sports wagering is unconstitutional.
More on the backstory of NJ sports betting and 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’s the conclusion of the Vast Majority opinion:
The legalization of sport betting requires a significant policy choice, but the choice is not ours to create. Congress can control sports gambling right, but when 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”regulate[s] state authorities’ law” of the citizens. …. The Constitution gives Congress no power. The judgment of the Third Circuit is reversed.
The court stated it reversed the decision of the US Third Circuit Court of Appeals. Complete opinion here.
SCOTUS affects on sports betting The real-world software of the verdict:
New Jersey can now move forward with its plans to legalize wagering. Some gaming centers in the state have suggested it could be just a matter of weeks until sportsbooks are operations. William Hill has said previously it would be reside within weeks at Monmouth Park.
West Virginia sports betting and Mississippi sports betting are also well prepared to proceed 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 could come later this season.
Sports gambling legislation progressing in several of nations can take effect immediately upon passage.
New Jersey appears set to proceed with legislation to regulate sports gambling, today that PASPA is gone. Its first law is what amounts to a”partial repeal” of its own sports gambling prohibition, together with unregulated wagering capable to take place at the state’s casinos and tracks.
The New Jersey Department of Gaming Enforcement, that will oversee sports betting from the country, had no comment on the decision from SCOTUS today.
A quick timeline of this case New Jersey enacted a law in 2014 in which it partly repealed its sports gambling ban. That law has been an effort to allow the state’s casinos and horse betting tracks to provide sports wagering by operating around a federal law, the skilled and Amateur Sports Protection Act. That law prohibits single-game wagering outside of Nevada sports gambling.
The NCAA and the major US pro sports leagues — NFL, NBA, MLB and NHL — along with the NCAA filed lawsuit to stop the law from taking effect. The leagues have standing under PASPA to bring suits that exude sports gambling.
On the following 3 years, New Jersey dropped in the federal district court and the US Third Circuit Court of Appeals. New Jersey subsequently appealed the case to the US Supreme Courtin June. The Supreme Court agreed to listen to New Jersey’s allure in the summer of 2017.
Oral arguments took place in December; several considered the hour of dialogue between justices and counselor went well for New Jersey.
More from the sports gambling decision
The choice in the case clocked in at 49 pages. Six justices joined the vast 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 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 pretty unequivocal in stating that PASPA is unconstitutional. Here’s the quick digest of what SCOTUS really said about PASPA Regarding the law:
When a State completely or partially repeals old laws banning sports gambling strategies, it”authorize[s]” these approaches under PASPA.
PASPA’s provision forbidding state authorization of sports betting strategies violates the anticommandeering rule.
PASPA’s provision forbidding state”licens[ing]” of sport gambling schemes also violates the anticommandeering rule. It matters a direct order to the state legislature and suffers from the same flaw as the prohibition of state authorization. Therefore, this Court shouldn’t decide whether New Jersey’s 2014 law governs PASPA’s antilicensing provision.
No supply of PASPA is severable from the terms directly at issue.
The bottom line: PASPA is background.
Alito’s takeaways
Alito gives us a brief history of gaming in the US and PASPA prior to getting into the questions of legislation which were put in front of the courtroom.
Alito stated the idea that Congress had in mind exactly what NJ did — a partial repeal — is dubious:
The Third Circuit couldn’t say that, if any, partial repeals are allowed. The United States tell us that the PASPA ban state consent allows complete repeals, but past that they identify no obvious line. It’s unlikely that Congress intended to enact such a nebulous regime.
The state had argued that PASPA commandeered the nation into keeping its prohibition on the books. And the court, through Alito, consented.
The PASPA provision at issue here–prohibiting state authorization of sports gambling–violates the anticommandeering rule. That provision unequivocally dictates what a state legislature may and might not do.
Reaction to the NJ sports betting case
This is some reaction 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 solid 55 percent of Americans think it is time to end the federal ban on sports betting. Today’s ruling makes it possible for states and autonomous tribal nations to give Americans what they want: an open, transparent, and accountable market for sports gambling.
Through clever, efficient regulation this new market will protect consumers, maintain the integrity of those games we enjoy, empower law enforcement to fight illegal gambling, and generate new revenue for countries, sporting bodies, broadcasters and many more. The AGA stands ready 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 sport remains absolute. Congress has long-recognized the possible harms posed by sports betting to the ethics of sporting contests and the public confidence in these types of events. Given that history, we mean to call on Congress again, this time to enact a core regulatory frame for legalized sports betting. We will work closely with our clubs to make certain that any state attempts that proceed in the meantime shield our fans and the ethics of our sport.
NCAA
“Today the United States Supreme Court issued a clear conclusion that PASPA is unconstitutional, reversing the lower courts which held otherwise. While we are still reviewing the decision to understand the general implications to school sports, we will adjust sports wagering and championship policies to align with the direction from the courtroom.”
NBA
Commissioner Adam Silver:
“Today’s decision by the Supreme Court opens the door for states to pass laws legalizing sports gambling. We stay in favor of a federal framework that will offer a uniform approach to sports betting in states that choose to allow it, but we’ll remain active in continuing discussions with state legislatures. Regardless of the particulars of any prospective sports gambling law, the ethics 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 together with another sports unions, work to make certain our players’ rights are safeguarded and promoted as we venture into this new territory.”
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 out the appropriate protections for our sport, in partnership with other specialist sports. Our main priority is protecting the integrity of the games. We’ll continue to support legislation which promotes air-tight partnerships and coordination between the state, the casino operators, as well as the regulating 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 most basic topics of players safety, the realities of widespread sports gambling must be addressed and thoughtfully to prevent putting our game’s integrity at risk as states continue with legalization.”
PGA Tour
“Following the Supreme Court’s ruling today, the PGA TOUR reiterates its support of the law of sports gambling in a safe and responsible way. We believe that law is the best way of ensuring integrity in competition, protecting consumers, engaging enthusiasts and generating revenue for authorities, operators and leagues. 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 that 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 decades, there are 10 to 12 countries that are mature and ready to activate 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 trust”
888 Holdings
Itai Frieberger, CEO of 888:
“888 continues to be keeping a very close eye on regulatory developments in america and welcomes today’s announcement as a significant step forward in the potential regulation of the US market. The potential for sports betting in the united states is significant and, since the sole operator in all three regulated US states, we believe 888 is uniquely positioned to exploit the potential growth opportunities in the US market that today’s judgment 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 triumph for New Jersey and the rest of the country. PASPA was clearly unconstitutional, along with the ban on sports gambling has now rightfully been reversed by the Court. I’ve long thought that New Jersey should have the opportunity to go with sports gambling. Now the Supreme Court has struck down this unlawful and confusing law, it is time for Congress to maneuver the GAME Act ahead to make sure that consumer protections are set up in almost any nation that decides to execute sports gambling.”
Rep. Dina Titus
Titus signifies Nevada in Congress.
“Today the Supreme Court has confirmed states’ rights in regards to sports gambling and opened up the door for regulated sports betting in states across the nation,” stated Representative Titus. “A regulated market is always better than an unregulated one. As the agent for Las Vegas I have seen the success of the booming, regulated sports gambling market in Nevada. The skilled 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 illicit actions, and jeopardizes the integrity of sports leagues.
In the forthcoming weeks, I will be working together with key stakeholders and industry specialists to help educate my colleagues on what this implies for their own states and what they can learn from the golden standard set in Nevada. Allowing countries and tribal sovereign governments to legalize sports betting could boost local economies, raise state revenues, and even better protect both consumers and the market, with Nevada revealing how. Las Vegas will still be the premier destination for sports betting, and Nevada can export its own experience. The Supreme Court now also sends a clear message to the Department of Justice which can be applied to some other nations’ rights problems like marijuana.”
New York
Here is Sen. John Bonacic, Who’s sponsoring legislation to legalize wagering in his state:
“New York was preparing for this moment since as far back as 2013 and now we’ve stayed proactive in anticipation of the 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 explore this issue in detail.
Since that time, I’ve introduced legislation that has passed committee and continued to have productive discussions concerning the problem. 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 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 engaging in a dialogue with fellow tribal leaders, policymakers, and business stakeholders to find out whether there’s a path forward for sports gambling from California.”
California Nations Indian Gaming Association
Chairman Steve Stallings:
Moving forward it will take a change to the California Constitution to allow any form of sports wagering. In doing this, we’d advise the country to proceed slowly and carefully and examine all angles because it relates to sports betting. As the condition of California weighs the choice of whether to permit for the practice of sports wagering, we firmly request that tribes have a spot in the table in all discussions surrounding this issue.
In addition, we wish to make quite clear that California voters have, on numerous occasions, supported the exclusive right of California tribal authorities to operate casino-style games. Legalization of sports betting should not develop into a back-door method to infringe upon this 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 industry protects California and is our authentic North Star that guides all of our stances and conclusion DraftKings and FanDuel
Both daily fantasy sports websites are eyeing legal sports wagering and that interest increases today. DraftKings had already announced its intention to provide sports wagering:
FanDuel:
“The Supreme Court’s decision, which paves the way for countries to legalize sports betting, creates a huge opportunity for FanDuel as our stage, brand, and customer base provide a unique and compelling foundation to meaningfully participate.
At our core, we are 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 choice makes it possible for us to attract the passion and engagement we’ve seen 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 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 today, thanks to the wisdom of the Supreme Court, DraftKings is going to be able to harness our proven technologies to provide our customers with innovative online sports gambling products. This judgment gives us the capacity to further enhance our product offerings and build on our unique capacity to drive fan engagement.”

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