New Jersey is Trying to Repeal the PASPA Law Making Sports Betting Unconstitutional

Oral arguments were heard by the U.S. Supreme Court regarding the PASPA law of 1992. Traditional sports betting occurring outside Nevada is prohibits by this law as unconstitutional.

The hearing lasted for an hour, and the high court heard reasons why numerous interested states including New Jersey should have the ability to regulate gambling within their states. With approximately $150 billion bet on sports by Americans every year, the stakes are astronomically high.

In Nevada, the amount coming in via regulated sports books is under $5 billion. According to the estimation of Oxford Economics, if PASPA is repealed the result will be a market capable of creating an economic impact of $26.6 billion.

The hearing on Capitol Hill pleased the casino industry and may be responsible for setting a new precedent regarding state’s rights. The federalism concept is currently at stake.

As the CEO and President of the American Gaming Association, Geoff Freeman believes some of the courts had questions regarding the intentions of the PASPA authors. He stated their system theoretically enabled unregulated sports betting.

He made a point to mention the flourishing of the enormous black market since the enactment of the law. According to the Eilers & Krejcik research group, as much as $60 billion is bet yearly by Americans on unregulated, offshore gambling sites.

Geoff Freemen felt the Garden state experienced a good day. He realizes it is not possible to predict the court’s outcome, but felt the momentum was in favor of New Jersey.

He believes there was sympathy for the plight of New Jersey from several of the justices.

He thinks the future of regulated and legal sports betting in the United States is much closer to being resolved. Although the Supreme Court continues to deliberate, the educational efforts of AGA are continuing at Capitol Hill to ensure if concerns are not addressed by the ruling of the court the industry will be in an excellent position.

The NCAA and the major sports leagues remain on the opposite side of the issue. In 2012, when New Jersey tried to launch sports books at casinos in Atlantic City by circumventing the PASPA, they were sued.

The leagues want to see the issue tackled by Congress regardless of the Supreme Court’s outcome. The NFL represents the only exception. According to Dina Titus, a United States Representative, the attention of Congress should be on United States sports betting. She said there is already preparation underway by the states regarding the judicial outcome. This may pave the road for sports betting. In 2017, sports betting legislation was introduced by thirteen states.

Dina Titus feels it is obvious this issue will be presented to Congress, and action must be taken so consumers are protected, and bad actors excluded from marketplace participation.

She is requesting a hearing be held by the Energy and Commerce Committee regarding sports betting. As the Governor of New Jersey, Chris Christie believes if success is achieved at the hearing, New Jersey can be taking bets inside of two weeks.