With the Supreme Court's historic 7-2 ruling Monday morning to strike down the Professional and Amateur Sports Protection Act, you can bet states will be lining up to legalize a number of different ways to take advantage of what will likely mean billions of dollars in new revenue.
The Supreme Court decision to back New Jersey in its battle to have legalized sports betting won't just affect that state, which has been in a five-year-long legal battle with all of the major sports leagues and the NCAA regarding the state's ability to join Nevada in the legalized gambling business.
The Professional and Amateur Sports Protection Act (PAPSA), passed in 1992, barred state-authorized sports gambling with the exception of Nevada, the only state where a person could wager on the results of a single game. Then-New Jersey Gov. Chris Christie signed a bill that would allow legalized sports wagering in his state, only to be sued by the major sports leagues and NCAA to stop the process.
The NBA, NFL, NHL and Major League Baseball had argued in court that New Jersey's gambling expansion would hurt the integrity of their games.
The NHL issued this statement following Monday's ruling: “The Supreme Court’s decision today paves the way to an entirely different landscape – one in which we have not previously operated. We will review our current practices and policies and decide whether adjustments are needed, and if so, what those adjustments will look like. It’s important to emphasize that the Supreme Court’s decision has no immediate impact on existing League rules relating to sports wagering, and particularly, wagering involving NHL games. So, while changes may be considered in the future, today’s decision does not directly impact the operation of the league or any of our clubs in the short term.”
The NFL said it will continue to wage a battle at the legislative level to try to save what it says is the integrity of the league: "The NFL's long-standing and unwavering commitment to protecting the integrity of our game remains absolute," the league said in a statement Monday. "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 executive director for the Major League Baseball Players Association, released the following statement: "The Court's decision is monumental, with far-reaching implications for baseball players and the game we love. From complex intellectual property questions to the most basic issues of player safety, the realities of widespread sports betting must be addressed urgently and thoughtfully to avoid putting our sport's integrity at risk as states proceed with legalization."
Monday's ruling is a win for states’ rights and legalized sports books are expected to open in a number of states, including New Jersey.
Pennsylvania also is expected to move quickly to get in on the action. Gov. Tom Wolf signed a number of new gambling laws into effect last October that loosened rules on online poker and casino games, and allowed for the regulation of daily fantasy sports. But it also laid the groundwork for legalized sports betting should New Jersey win its legal battle.
At the time, State Representative Rob Matzie, who spearheaded the efforts to have legalized sports gaming in Pennsylvania, said he expected it to be ready to go soon after the ruling in the New Jersey case.
"My hope is that Pennsylvania will be positioned to offer legalized sports betting sometime in 2018," Matzie said.
That could be through online services or through one of the state's 12 licensed casinos. But it won't come cheap.
Matzie's bill set a $10 million fee for those wishing to offer sports gaming in Pennsylvania, and the state would levy a tax of 36 percent on all sports gaming revenue.
And Pennsylvania won't be the only state to jump into the fray. According to The Associated Press, a research firm estimated that 32 states will offer some form of legalized sports betting within five years.
But there's plenty of room at the table. According to American Gaming Association estimates, $150 billion is wagered each year illegally across the United States.
