The United States Supreme Court agreed on Monday to allow New Jersey’s bid for sports betting at its casinos and racetracks, effectively ending prohibition on a $100 billion industry and striking down restrictions on wagering outside of Nevada.
The U.S. Supreme Court ruling in favor of New Jersey on Monday effectively killed the Professional and Amateur Sports Protection Act (PASPA), the federal law that essentially limited sports betting to one state for the last 25 years.
PASPA was declared unconstitutional in the 6-3 decision, meaning it will be up to states – including New Jersey, which has sought to establish sports gambling for years – to decide whether to allow its residents to bet on sports.
Here’s a breakdown of what the ruling by the nation’s highest court means:
What is PASPA?
PASPA was signed into law by President George H.W. Bush in 1992 and went into effect in January 1993. Nevada – the only state at the time the bill became law that had widespread state-sponsored sports bettors – and three other states with more limited betting (Oregon, Delaware and Montana) were grandfathered in.