In a landmark decision that is set to reshape the American sports-betting landscape, the Supreme Court has declared unconstitutional The Professional and Amateur Sports Protection Act of 1992 (PASPA), ending a protracted court battle between New Jersey and the major American sports leagues that stretched back to 2012.
In repealing PASPA via a 6-3 decision, the Supreme Court justices handed a seismic victory to New Jersey, holding that the 26-year-old federal statute’s “provision prohibiting state authorization of sports gambling schemes violates the anticommandeering rule,” thereby representing an infringement on states’ sovereignty.
The majority opinion, written by Justice Alito, states that “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.”
While most directly applicable to New Jersey in the near term, the decision, in striking down PASPA, also has sweeping implications for other states looking to move forward with their own sports-betting bills.
As for New Jersey, Monmouth Park, situated on the Northeast Jersey Shore a stone’s throw from New York City, is almost certain to become the first sportsbook outside of Nevada to accept a wide range of bets. The racetrack has already partnered with William Hill and has a sports bar that it has said could be transformed into a full-service sportsbook within two weeks of a decision.
Monmouth Park chairman and CEO Dennis Drazin issued a statement following the ruling, which read in part: “We started this fight back in 2012 and are grateful that the Supreme Court has recognized that we’ve been right all along. We can now shift our focus on commencing sports betting, which will be off and running at Monmouth Park as soon as possible. … And now that victory is hand, I look forward to working with Governor Phil Murphy, who has been a strong supporter of today’s ruling, on implementing sports betting.”
Exactly how soon could it be before Monmouth Park begins taking bets? Drazin is maintaining two weeks, but it will ultimately be up to the New Jersey state legislature, which will need to finalize licensure measures and roll out a regulatory framework for the state’s gaming operators before sportsbooks can officially open for business.
Regardless, the process figures to be accelerated as much as possible to allow for sports-betting revenue to begin streaming in — particularly with marquee events such as the NBA Finals and World Cup on the horizon in June. In other words, buckle up.