Supreme Court Ruling for New Jersey Opens Door to Sports Betting
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Justices invalidate federal law that prohibited such wagers in most of the U.S.
The Supreme Court opened the door to legal sports betting across the country by invalidating federal prohibitions on such wagers, in a ruling Monday that could mark a groundbreaking shift for sports leagues, fans and casinos.
The court, in a 6-3 opinion written by Justice Samuel Alito, struck down the 1992 Professional and Amateur Sports Protection Act, or Paspa, a federal law that said states couldn’t “sponsor, operate, advertise, promote, license, or authorize” sports gambling.
While some states may resist on moral or other grounds, the lure of new tax revenue could prove strong, given that Americans are believed to wager billions of dollars a year illegally.
“I’m very confident we can get this done next year,” said Republican Iowa state Rep. Jake Highfill, who has offered legislation that would allow sports bets in Iowa’s 19 casinos, as well as through online platforms.
One big unknown is what form wagering might take throughout the country. If states restrict it to in-person bets at casinos, that would make for a much smaller market than allowing wagers to be placed online.
“My generation doesn’t go to casinos,” said Mr. Highfill, 28 years old. “If you want to fix the black market, you have to allow online.”
A study last fall from industry consultant Eilers & Krejcik Gaming LLC found that total annual revenue from sports betting at casinos and racetracks in all 50 states would amount to $7.1 billion, whereas adding online wagers would more than double the annual revenue to about $16 billion.
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