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    Supreme Court Strikes Down Federal Law That Banned Sports Gambling

    Supreme Court Strikes Down Federal Law That Banned Sports Gambling

    “Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own.”

    The Supreme Court ruled 6-3 to strike down the Professional and Amateur Sports Protection Act (PAPSA) that outlawed sports gambling in most states.

    From Fox News:

    The 1992 law had barred gambling on football, basketball, baseball and other sports with some exceptions, like allowing people to wager on a single game only in Nevada. The Supreme Court ruling now gives states the go-ahead to legalize sports betting if they want.

    “The legalization of sports gambling requires an important policy choice, but the choice is not ours to make,” the opinion by Justice Samuel Alito said.

    “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,” the ruling said.

    One research firm estimated before the ruling that if the Supreme Court were to strike down the law, 32 states would likely offer sports betting within five years.

    PAPSA “bars state-authorized sports gambling with exceptions for Nevada, Montana, Oregon and Delaware, states that had approved some form of sports wagering before the law took effect.”

    The originated in New Jersey after “casinos in Atlantic City” started to lose revenue. In 2011, voters in the state “amended its state Constitution to allow sports betting, and the state Legislature soon passed a law authorizing it.” The major sports leagues retaliated and challenged the law.

    New Jersey tried again in 2014 when the state partly repealed “its existing bans on sports betting to allow it at racetracks and casinos.” The leagues sued the state again and won.

    Over a dozen states showed support for New Jersey. They “argued that Congress exceeded its authority when it passed” PAPSA and that while “the Constitution allows Congress to pass laws barring wagering on sports,” legislators “can’t require states to keep sports gambling prohibitions in place.”

    The NFL, MLB, NHL, and NBA urged the Supreme Court to uphold the federal law. The leagues believe “that New Jersey’s gambling expansion would hurt the integrity of their games.”

    Like people really care about a law that prohibits them from gambling. After all, the American Gaming Association (AGA) has estimated that citizens “illegally wager about $150 billion on sports each year.” Other analysts believe that if sports betting expanded and became legal the “industry could generate at least $7 billion annually.”

    The AGA released this statement 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. According to a Washington Post survey, a solid 55 percent of Americans believe it’s time to end the federal ban on sports betting. 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. 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. The AGA stands ready to work with all stakeholders – states, tribes, sports leagues, and law enforcement – to create a new regulatory environment that capitalizes on this opportunity to engage fans and boost local economies.”

    Pacific Legal Foundation attorney Jonathan Wood emailed this statement:

    This morning, the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) as unconstitutional. The opinion, authored by Justice Alito, is a major win for federalism. Justice Alito’s opinion explains that PASPA, which forbids states from “authorizing” or “licensing” sports betting, “unequivocally dictates what a state legislature may and may not do.” “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,” he continued. In a nation committed to federalism, with independent federal and state authority both answerable to the people, neither one can dictate to the other. To hold otherwise, would have undermined a key structural protection of liberty and democratic accountability. By striking down PASPA in its entirety, the Court placed a big bet on our Constitution’s system of federalism.

    States will probably “move quickly to establish sports betting as a means to increase their respective coffers.” West Virginia Lottery general counsel Danielle Boyd thinks that her state could develop sports betting within 90 days of the repeal.

    Other states may not have it as easy. Pennsylvania’s legislation for sports betting “requires a one-time license fee of up to $10 million, along with a tax of as much as 34% on gross receipts. AGA senior vice president of public affairs Sara Slane said actions like this “could be a non-starter for potential operators.” But with the repeal, she thinks “some states will have to go back and structure a policy that will allow operators to want to come to the state.”


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    OleDirtyBarrister | May 15, 2018 at 11:43 am

    The advantage of betting with a local bookie is that it is all cash and there is no paper report filed with the government on winnings.

    Private [illegal] bookmaking will be hard to eliminate for that reason.

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