The recent Supreme Court decision legalizing sports betting kept analysts busy analyzing, writers frantically writing, and bettors eager to bet.
The Supreme Court gave temporary victories to a Colorado church and New Jersey religious leaders that challenged their respective states coronavirus restrictions on the number of people allowed at. The US Supreme Court's new sports-gambling decision is all about states' rights Reuters?Afolabi Sotunde Betting on athletics is already legal in Nigeria, and may soon come to a US state near you.
The opinion was a win for states rights. Casino apps that can win real money glitch. And while the overturning Professional and Amateur Sports Protection Act (PASPA) was specific to sports betting, the challenge was really about whether Congress can legislate how states act.
In its ruling, the Supreme Court opened the door for federal legislation addressing sports wagering. That doesn't mean the government will legislate sports betting. It merely says they can and if they do it will likely be constitutional.
For now, though the Supreme Court opened the door for legalized sports betting throughout the United States. And while that is great news for sports enthusiasts, it is still not a free and open market.
Here are five things the Supreme Court decision didn't do.
1. It did NOT legalize nationwide sports betting
While the decision opens the door for legalized sports betting, it does not change the legality of sports wagering. The Supreme Court gave the power to the states.
It's been one week since the decision and no legal sports bets have been wagered outside of Nevada, where sports betting was allowed under PASPA.
Ahead of the decision, a few states moved forward and passed laws to address sports betting. Since the ruling, more states have taken up the topic.
For instance, New Jersey, the state that challenged PASPA, has an unregulated sports betting law on the books. Officials are introducing legislation to regulate the activity and includes a bad actor clause for any entity that accepts a bet before the legislation is complete. Key officials are pushing for a June 7 vote.
Us Supreme Court Gambling Decisions
And while New Jersey is moving fast, Delaware might be the first state to accept a legal sports bet outside of Nevada. Delaware confirmed that existing laws put the state in a position to accept sports wagers almost immediately.
The team at Legal Sports Report are keeping track of the national sports betting landscape. To find out what is happening in a specific state, visit the Sports Betting Bill Tracker.
2. It did NOT legalize sports betting across state lines
The Interstate Wire Act of 1961 prohibits bets and the transfer of gaming information between states.
It brings into question how officials will interpret the Wire Act post-PASPA. The Wire Act exempts the transmission of information that supports the placing of wagers in states where sports betting is legal. It does not, however, exempt the bet.
As a side note, poker is different than sports betting. The combination of poker player pools between Nevada, New Jersey, and Delaware falls outside of the scope of the Wire Act.
New York sought clarification in 2011 and the Department of Justice responded:
'Interstate transmissions of wire communications that do not relate to a ‘sporting event or contest' fall outside the reach of the Wire Act.'
The Wire Act was enacted to help support the gambling laws in each state. It seems likely at some point in the future that the Wire Act will be challenged to allow multi-state sports betting between states that legalized the activity. For now, the Wire Act is in play.
3. It did NOT permit for anyone to open a sportsbook
States have the ultimate say of what sports betting activity takes place within its borders. That includes authoring legislation that discusses licensing and regulations. Even New Jersey is rushing to regulate the market to counter the unregulated sports betting law that is in effect.
As the first wave of legislation passes, it is unlikely that any state will create a free market. Likely states will be looking to Nevada and other early adopters as a model to create its legislation.
Any entity that wants to open a sports book must follow the regulations outlined by the state they wish to operate in.
4. It did NOT legalize sports bets to offshore accounts.
The Unlawful Internet Gambling Enforcement Act (UIGEA) prohibits payments from financial institutions to gambling sites. Specifically, it says:
'The Act prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law.'
The legalization of sports betting is now in the hands of individual states. The bet must originate and stay within a state where sports betting is legal.
The law focuses on the organizations accepting bets originating in the U.S. in violation of existing laws. The law does not mention individuals. An arrest of an American placing a bet with an offshore sportsbook is unlikely.
The risk to Americans is if enforcement of the laws forces the offshore sportsbook to shut down. Any money on with the offending entity is in jeopardy.
5. It does NOT address daily fantasy sports
Us Supreme Court Sports Betting Decision
Sports betting is a game of chance while daily fantasy sports (DFS) has been deemed a game of skill by the courts. Because of this designation, daily fantasy sports betting is legal.
Some experts believed PASPA applied to DFS, but it was never challenged. Some states prohibit DFS due to existing laws in those states. State legislation addressing sports betting will apply to daily fantasy sports only if specifically addressed.
The bottom line is it all comes down to how each state decides to regulate sports betting. The Supreme Court may have opened the door, but that doesn't give everyone the freedom to walk in.
The Supreme Court struck down a federal law that prohibits sports gambling Monday in a landmark decision that gives states the go-ahead to legalize betting on sports. Gambling machine secrets.
The court ruled 6-3 to strike down the Professional and Amateur Sports Protection Act, a 1992 law that barred state-authorized sports gambling with some exceptions. It made Nevada the only state where a person could wager on the results of a single game.
States that want to offer legal sports betting may now do so, and New Jersey plans to be first. Delaware, Mississippi, New York, Pennsylvania and West Virginia are among the states expected to quickly get into the legal bookmaking game.
The court ruled in favor of New Jersey and against the NCAA, NFL, NBA, NHL and Major League Baseball, capping a nearly six-year legal battle and overturning a federal statute that the sports leagues had adamantly stood by for more than 20 years.
'Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own,' the court wrote its opinion. 'Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not.'
The leagues first sued former New Jersey Gov. Chris Christie in August 2012 and won every step of the way -- until June, when the Supreme Court decided to take the case. Oral arguments were heard Dec. 4, and the justices ruled five months later.
Christie tweeted after the ruling that it was a 'great day for the rights of states and their people to make their own decisions.'
New Jersey's current governor, Phil Murphy, also cheered the ruling, saying he was 'thrilled' to see the high court strike down the 'arbitrary ban.' He said in a statement that he looks forward to working with the legislature to 'enact a law authorizing and regulating sports betting in the very near future.'
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The bottom line is it all comes down to how each state decides to regulate sports betting. The Supreme Court may have opened the door, but that doesn't give everyone the freedom to walk in.
The Supreme Court struck down a federal law that prohibits sports gambling Monday in a landmark decision that gives states the go-ahead to legalize betting on sports. Gambling machine secrets.
The court ruled 6-3 to strike down the Professional and Amateur Sports Protection Act, a 1992 law that barred state-authorized sports gambling with some exceptions. It made Nevada the only state where a person could wager on the results of a single game.
States that want to offer legal sports betting may now do so, and New Jersey plans to be first. Delaware, Mississippi, New York, Pennsylvania and West Virginia are among the states expected to quickly get into the legal bookmaking game.
The court ruled in favor of New Jersey and against the NCAA, NFL, NBA, NHL and Major League Baseball, capping a nearly six-year legal battle and overturning a federal statute that the sports leagues had adamantly stood by for more than 20 years.
'Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own,' the court wrote its opinion. 'Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not.'
The leagues first sued former New Jersey Gov. Chris Christie in August 2012 and won every step of the way -- until June, when the Supreme Court decided to take the case. Oral arguments were heard Dec. 4, and the justices ruled five months later.
Christie tweeted after the ruling that it was a 'great day for the rights of states and their people to make their own decisions.'
New Jersey's current governor, Phil Murphy, also cheered the ruling, saying he was 'thrilled' to see the high court strike down the 'arbitrary ban.' He said in a statement that he looks forward to working with the legislature to 'enact a law authorizing and regulating sports betting in the very near future.'
The impact will be widespread. For nearly 26 years, Nevada has been the only state allowed to offer a full menu of sports betting options. A record $4.8 billion was wagered at Nevada sportsbooks in 2017.
New Jersey, with its much larger population, is expecting even bigger things. So are other states, with more than a dozen having introduced sports betting bills this year.
As the case played out over the past six years, the NBA and MLB pivoted their position on expanding legal sports betting and began lobbying on the issue in several states, including Connecticut, Illinois, Indiana, Kansas, Missouri, New York and West Virginia.
Hobeys casino steakhouse. '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,' NBA commissioner Adam Silver said in a statement. 'Regardless of the particulars of any future sports betting law, the integrity of our game remains our highest priority.'
MLB said in a statement that the ruling will have 'profound effects' and that it 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,' MLB's statement said. '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.'
The NFL, NHL and NCAA, on the other hand, have sat on the sideline awaiting the ruling.
'The NFL's long-standing and unwavering commitment to protecting the integrity of our game remains absolute,' the league said. '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.'
Tony Clark, the head of the Major League Baseball Players Association, called the ruling 'monumental, with far-reaching implications for baseball players and the games we love.' Clark said the topic must be addressed 'urgently and thoughtfully to avoid putting our sport's integrity at risk as states proceed with legislation.'
The U.S. joins other jurisdictions that allow legal sports betting, including Canada, the United Kingdom, Australia and France.
To start, it's likely that bets will have to be placed at brick-and-mortar establishments, but states are making plans to offer mobile sports betting in the future.
One research firm estimated before the ruling that if the Supreme Court were to strike down PASPA, 32 states would likely offer sports betting within five years. The American Gaming Association estimates that Americans illegally wager about $150 billion on sports each year.
Geoff Freeman, the president and CEO of the American Gaming Association, said in a statement that the court's decision is 'a victory for the millions of Americans who seek to bet on sports in a safe and regulated manner.'
'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,' 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.'
ESPN's Ryan Rodenberg and The Associated Press contributed to this report.
