What Supreme Court Gambling Ruling Means for Sports Bettors

The Supreme Court has legalized sports gambling.

That means it's a free-for-all of sports betting across the nation, right? Not exactly.

Monday was, indeed, a landmark victory for sports gamblers everywhere. The Supreme Court ruled a 1992 federal ban on sports gambling—the Professional and Amateur Sports Protection Act, or PASPA—was unconstitutional, opening the doors for states to enact their own gambling laws.

"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," the Supreme Court outlined in its ruling.

However, this is a far more complicated situation than "everything is legal now." The following is a brief explainer on what this ruling means for you, the sports gambler who has definitely never done any of this before (*wink*).

How Did This Happen?

In 2012, then-New Jersey governor Chris Christie signed legislation that would have legalized gambling in the state. The four major professional sports leagues (NFL, MLB, NBA and NHL) banded together with the NCAA to sue Christie and New Jersey to block the action, which was successful.

New Jersey appealed the decision at lower courts and lost. In 2014, the Supreme Court declined to hear New Jersey's case, but the state continued its push—in large part because it was Christie's pet project. (His gubernatorial run ended in January.)

The Supreme Court then agreed to hear the case and voted 6-3 in New Jersey's favor. More specifically, it ruled PASPA was unconstitutional.

So I Can Start Gambling on Sports Legally Everywhere, Right?

Nah.

Why Not?

The Supreme Court ruling does not "legalize" sports gambling in the general sense of the word. It simply gives states the freedom to legalize betting on sports, should they choose. Each state will now be free to make its own decision on how it handles the new law.

So Where Can I Gamble on Sports?

Las Vegas, Atlantic City and some horse racing tracks.

Can I Bet Online?

Nope.

Both the states of New Jersey and Nevada require a person to make their wagers in person. This is done to prevent illegal cross-state gambling from people in areas where it is outlawed. Also, for tax purposes.

The federal government also passed the Unlawful Internet Gambling Enforcement Act of 2006, meant to prohibit the payment of gambling winnings online. The law does not, however, explicitly prohibit online gambling.

Odds are most states will follow a similar pattern of enforcement, requiring people to make their wagers in person.

Why Do States Want To Do This?

Because it stands to make them a whole heaping pile of money.

It's That Simple?

Pretty much. New Jersey residents voted in favor of legalized sports gambling in 2011 to help Atlantic City infuse cash into its struggling casino industry. Sports gambling is a multibillion-dollar industry that, until now, was mostly done illegally on offshore books or through bookies.

The states will now get a cut of the profit. Nevada sportsbooks alone won $249 million in 2017.

So What Changes?

Unless you live in New Jersey, nothing changes—for now. Your local gas station can't just start setting up its own sports book.

For residents of states outside of Nevada and New Jersey, things are now a waiting game. Atlantic City will, at least for a short time, get a little boost as the East Coast Las Vegas, though.

What States Are Next?

Connecticut, Delaware, Iowa, Mississippi, New York, Pennsylvania and West Virginia are next on the list. All of those states had legislation that has them on the path to legalized sports gambling before the Supreme Court ruling.

Thirteen additional states have similar legislation planned or proposed.

This Is Bad News for Las Vegas, Right?

Really bad.