The U.S. Supreme Court on Monday paved the way for states to permit betting on sporting events by striking down a federal law that had effectively barred states from legalizing sports gambling.
The justices ruled in favor of New Jersey in the case, Murphy v. NCAA, and reversed a ruling from the 3rd U.S. Circuit Court of Appeals. Justice Samuel Alito delivered the opinion for the majority.
In its 6-3 ruling, the court struck down the Professional and Amateur Sports Protection Act. Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented, and they were joined in part by Justice Stephen Breyer.
“The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own,” Alito wrote. “Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not.”
The Supreme Court’s decision received praise from former New Jersey Gov. Chris Christie, who was governor when the case was brought.
“A great day for the rights of states and their people to make their own decisions. New Jersey citizens wanted sports gambling and the federal Gov’t had no right to tell them no. The Supreme Court agrees with us today. I am proud to have fought for the rights of the people of NJ,” Christie tweeted.
A great day for the rights of states and their people to make their own decisions. New Jersey citizens wanted sports gambling and the federal Gov’t had no right to tell them no. The Supreme Court agrees with us today. I am proud to have fought for the rights of the people of NJ.
— Governor Christie (@GovChristie) May 14, 2018
New Jersey Gov. Phil Murphy, a Democrat, said he was “thrilled” the justices sided with the state and intends to work with the state legislature to enact a law legalizing and regulating sports betting.
“New Jersey has long been the lead advocate in fighting this inherently unequal law, and today’s ruling will finally allow for authorized facilities in New Jersey to take the same bets that are legal in other states in our country,” Murphy said in a statement.
The case pitted the state of New Jersey against the country’s major sports leagues, including the NCAA and the NFL. It stemmed from a 2011 decision from New Jersey voters to amend the state’s constitution to give the legislature the authority to legalize sports betting.
State lawmakers passed a bill that repealed certain prohibitions on sports gambling in a move that aimed to revive a struggling Atlantic City, which is facing closing casinos and falling revenues.
But New Jersey’s state law ran afoul of the Professional and Amateur Sports Protection Act, which was passed by Congress in 1992 and made it illegal for states to “sponsor, operate, advertise, promote, license or authorize by law … a lottery, sweepstakes, or other betting, gambling or wagering scheme based, directly or indirectly on one or more competitive games in which amateur or professional athletes participate.”
The high court decided to weigh in on New Jersey’s lifting of sports gambling prohibitions after the state lost in the lower courts.
New Jersey officials challenged the PASPA before the Supreme Court, arguing the law is a violation of the 10th Amendment and calling it a “dramatic, unprecedented” usurpation of New Jersey’s authority.
The Supreme Court agreed.
“The PASPA provision at issue here—prohibiting state authorization of sports gambling—violates the anti-commandeering rule. That provision unequivocally dictates what a state legislature may and may not do. And this is true under either our interpretation or that advocated by respondents and the United States,” Alito wrote in his opinion.
“In either event, state legislatures are put under the direct control of Congress. It is as if federal officers were installed in state legislative chambers and were armed with the authority to stop legislators from voting on any offending proposals. A more direct affront to state sovereignty is not easy to imagine,” he continued.
The justices heard oral arguments in the case in December, but in anticipation of a decision from the high court, states have already begun preparing.
As of mid-March, lawmakers in at least 18 states were readying bills that would permit people to bet on sporting events.
New Jersey wants to allow for sports gambling at casinos and racetracks, but was also prepared to roll back all of its state laws against betting if the Supreme Court ruled against it.
Sports leagues favored the federal prohibition on sports gambling and warned legalization would damage the integrity of the games. Immediately following the Supreme Court’s decision, the NCAA said it was working to understand the impact of the ruling.
“Today the United States Supreme Court issued a clear decision that PASPA is unconstitutional, reversing the lower courts that held otherwise,” Donald Remy, the NCAA’s chief legal officer, said in a statement. “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.”
But the American Gaming Association, a trade group that represents the casino industry, said the decision is a “victory” for millions of Americans who want to bet on sporting events.
“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,” American Gaming Association President Geoff Freeman said. “Through smart, efficient regulation this new market will protect consumers, preserve the integrity of the games we love, empower law enforcement to fight illegal gambling, and generate new revenue for states, sporting bodies, broadcasters and many others.”
