top corner

US Supreme Court Strikes Down PASPA – States May Now Regulate Sports Betting

Mark down the day May 14, 2018. This is the day that the face of online gambling changed once again in the United States – this time for the better.

Earlier today, the United States Supreme Court ruled that the Professional and Amateur Sports Protection Act (PASPA) is unconstitutional. The ruling opens the door for individual states and the federal government to enact legislation to legalize and regulate sports betting across the United States.

Supreme Court Overwhelmingly Votes to Strike Down PASPA

USA Today reported on the Supreme Court decision on Monday. The panel of justices ruled 7-2 that the 25-year-old ban was unconstitutional. The ban had effectively banned sports betting in most of the nation.

Justice Samuel Alito was the justice that provided the court’s opinion. He is a New Jersey native and supporter of overturning the ban. He told USA Today, “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.”

Former New Jersey governor Chris Christie was the one who initially challenged the ban and took to Twitter to praise the ruling:

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

The challenge to PASPA began after New Jersey passed a law legalizing sports betting in 2012. A voter referendum was successfully issued in 2011 and voters overwhelmingly voted to amend the state Constitution to permit it.

Expect an Explosion of Sports Betting Regulation in the Next Five Years

Now that sports betting has been cleared to proceed after today’s ruling, expect an explosion of sports betting regulation across the nation and even in Congress. Last year, the US House of Representatives floated the Gaming Accountability and Modernization Enhancement Act (GAME Act) as a way to permit states the option of regulating online sports betting.

The bill never progressed and was not even considered to be a final bill, but it was a start. Now that the Supreme Court has struck down PASPA, such legislation could potentially move forward. Rep. Frank Pallone, D-N.J., stated: “Now that the Supreme Court has struck down this unlawful and confusing law, it is time for Congress to move the GAME Act forward to ensure that consumer protections are in place in any state that decides to implement sports betting.”

A Congressional bill that regulates sports betting at the federal level would be something that the major sports leagues (NBA, NFL, MLB and NHL) and the NCAA support. The leagues had sought to block the PASPA ban and was able to play a part in having the ban upheld in lower court decisions.

Whether Congress moves forward or not, states now have the freedom to explore sports betting regulation. Presently, New York, Pennsylvania, West Virginia, Delaware, Connecticut, Mississippi, and Iowa are viewed the most likely to pass a bill in the short term, perhaps as soon as this year.

AP Interactive released a tweet earlier today touting that as many as 25 states could offer sports betting over the next five years:

A look at which states are likely to legalize sports betting following today’s Supreme Court ruling. https://t.co/OdiRcxX7Y6 pic.twitter.com/9ls41KErkJ

— AP Interactive (@AP_Interactive) May 14, 2018

What Might This Mean for Online Poker?

While this is a major boon for the sports betting industry, there will likely be a ripple effect into other online gambling markets, including online poker. Sports betting will be a primary focus of states in the coming years, but it will likely just be one piece of general online gambling in some states.

Since states will be examining the issue of sports betting and online sports betting, it stands to reason that they will look at other potential revenue streams. This will result in some states creating omnibus bills that will serve to regulate online sports betting, casino gambling, lottery and online poker.

Looking at this realistically, it is unlikely that online poker will expand into 25 states over the next five years. However, it is not unrealistic to expect at least 10 of those states to consider and even regulate online poker.

If online poker were to grow by even five states, that would more than double the size of the present regulated online poker market. Of course, this is all speculation at this point, but today’s ruling will be nothing but positive for regulated online poker, regardless of the rate of growth.

bottom corner