BREAKING NEWS: US FEDERAL SPORTS BETTING BAN REPEALED BY THE SUPREME COURT
US FEDERAL SPORTS BETTING BAN REPEALED BY THE SUPREME COURT, UP TO STATES NOW TO FREELY REGULATE THEIR MARKETS
May 14 2018 marks the beginning of a new era for the Industry, as the Supreme Court of the United States repealed the federal ban imposed by the Congress back in 1992. At the same time, the 6-3 Court ruling put an end to a 6-year long legal battle led by the State of New Jersey. Despite losing this case in no less than six times in lower courts from 2011 onwards, this state fought for it to be presented before the US Supreme Court two years ago.
The country’s highest federal court has ruled down in entirety the Professional and Amateur Sports Protection Act (PASPA), which prohibited both private actors and states from authorizing, licensing or engaging in sports betting.
It was ascertained that PASPA violated the Tenth Amendment to the United States Constitution, which says that any power not delegated to the federal government remains reserved to the states. Furthermore, this federal law has also been in the breach of the anti-commandeering doctrine, which prevents federal legislation from unequivocally dictating what a state legislature may and may not do. Given the fact Congress did not provide any regulatory or deregulatory scheme with regards sports gambling, but had simply prohibited states from doing so, it violated the Tenth Amendment and the said doctrine.
As a practical consequence of the decision, sports betting in USA will be oriented towards becoming a legal, regulated and customer security-oriented social activity in any state deciding to license and regulate it. In this moment, more than 15 states have already enacted or are expected to enact that regulatory process as early as this autumn.
In the period to come, EOGL will be covering key US Industry regulatory changes, both at federal and state level.