The Issue Spotter

Sports gambling is an extremely lucrative industry—and it is growing at a rapid pace. In 2016, the Nevada State Gambling Control Board reported $4.5 billion in profits from legal sports wagering. Nevada, however, is the only state currently allowed to profit off of state-sanctioned sports betting under the Professional and Amatuer Sports Protection Act (“PASPA”). PASPA is a federal law passed by Congress in 1992 that effectively banned sports betting nationwide with the exception of state-sponsored sports betting in Nevada and sports lotteries in Oregon, Montana, and Delaware. With the goal of joining these states in profiting from state-sanctioned sports betting, the New Jersey State Legislature passed the Sports Wagering Act of 2012 (“2012 Law”), which legalized certain types of sports gambling in the state. In response to the passage of the 2012 Law, five major American sports leagues (the NCAA, NFL, MLB, NHL, and NBA, together, the “Leagues”) filed a lawsuit in 2012 to enjoin the 2012 Law for violating PASPA. The Third Circuit Court ruled in favor of the Leagues in National Collegiate Athletic Ass’n v. Governor of New Jersey. In 2014, New Jersey Governor Christie signed into law Senate Bill 2460 (the “2014 Law”). The major difference [read more]