The United States Supreme Court ruled Monday that a federal ban on state-sanctioned sports gambling is unconstitutional, opening the door for states to operate their own bookmaking operations.
In Murphy vs. NCAA and New Jersey Thoroughbred Horseman's Association vs. NCAA, the court ruled in favor of New Jersey Gov. Phil Murphy and the NJTHA and overturned the Professional and Amateur Sports Protection Act of 1992. The NCAA, the NBA and other sports organizations had been instrumental in the implementation of the law (known as PASPA), which argued that sports gambling's "harms it inflicts are felt beyond the borders of those states that sanction it."
In a vote of 7-2, the Supreme Court overturned the Third Circuit Court of Appeals' July 2017 ruling upholding PASPA. In the Court's majority opinion, Justice Samuel Alito wrote that "Congress can regulate sports gambling directly, but if 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 is consistent with the Constitution. PASPA is not. PASPA 'regulate[s] state governments' regulation' of their citizens. ... The Constitution gives Congress no such power."
Consumer policy expert Michelle Minton of the Competitive Enterprise Institute called the decision a "huge win."
"The Supreme Court's decision is a huge win, not just for states that want to legalize sports betting but for everyone who believes the right to make such decisions belongs to state voters," Minton said in a statement issued by the CEI. "States should now consider how best to shrink the illegal gambling market, protect consumers, and allow the marketplace to offer innovative products and experiences."
The NCAA released the following statement from Donald Remy, its chief legal officer:
"Today the United States Supreme Court issued a clear decision that PASPA is unconstitutional, reversing the lower courts that 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."
Prior to Monday, sports gambling had been legal only in Nevada and on a limited basis in Oregon, Delaware and Montana. New Jersey officials successfully argued that their state should be able to operate sports books in its Atlantic City casinos and horseracing tracks just as Nevada does in Las Vegas, Reno and other locations.
After learning of New Jersey's plans to open sports books, the NCAA, NBA NFL, NHL and Major League Baseball brought suit against the state in 2012. The United States District Court and the Third Circuit Court of Appeals found in the leagues' favor, leaving PASPA in place.
The Court's ruling opens up the possibilities that other state with casino gaming, such as Mississippi and Louisiana, might soon open Vegas-style sports book.
You can read the full Supreme Court opinion HERE.
The various professional sports leagues have also weighed in. Here are their statements:
NFL:
"The NFL's long-standing and unwavering commitment to protecting the integrity of our game remains absolute. Congress has long-recognized the potential harms posed by sports betting to the integrity 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 core regulatory framework for legalized sports betting. We also will work closely with our clubs to ensure that any state efforts that move forward in the meantime protect our fans and the integrity of our game."
NBA commissioner Adam Silver:
"Today's decision by the Supreme Court opens the door for states to pass laws legalizing sports betting. We remain in favor of a federal framework that would provide a uniform approach to sports gambling in states that choose to permit it, but we will remain active in ongoing discussions with state legislatures. Regardless of the particulars of any future sports betting law, the integrity of our game remains our highest priority."
Major League Baseball:
"Today's decision by the United States Supreme Court will have profound effects on Major League Baseball. As each state considers whether to allow sports betting, we will continue to seek the proper protections for our sport, in partnership with other professional sports. Our most important priority is protecting the integrity of our games. We will continue to support legislation that creates air-tight coordination and partnerships between the state, the casino operators and the governing bodies in sports toward that goal."
National Hockey League:
"The Supreme Court's decision today paves the way to an entirely different landscape - one in which we have not previously operated. We will review our current practices and policies and decide whether adjustments are needed, and if so, what those adjustments will look like. It's important to emphasize that the Supreme Court's decision has no immediate impact on existing League rules relating to sports wagering, and particularly, wagering involving NHL games. So, while changes may be considered in the future, today's decision does not directly impact the operation of the League or any of our Clubs in the short term."
PGA Tour:
"Following the Supreme Court's ruling today, the PGA Tour reiterates its support of the regulation of sports betting in a safe and responsible manner. We believe that regulation is the most effective way of ensuring integrity in competition, protecting consumers, engaging fans and generating revenue for government, operators and leagues. We remain aligned with the NBA and MLB in this area, and we will 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."