PASPA

PASPA, or the Professional and Amateur Sports Protection Act, was a United States federal law that was enacted in 1992. It was designed to prevent states from authorizing or licensing sports betting operations. The law effectively made it illegal for most states to permit sports wagering, with a few exceptions carved out for states that already had some form of legal sports betting in place at the time of its passage. These exceptions included Nevada, which had long-standing sportsbooks, and Delaware, New Jersey, and Oregon, which had limited forms of sports betting.

The primary aim of PASPA was to regulate and limit the expansion of sports gambling across the country. Supporters of the law argued it was necessary to protect the integrity of professional and amateur sports and to prevent the potential for corruption and match-fixing. They also cited concerns about the potential for increased problem gambling.

For over two decades, PASPA remained the primary federal legislation governing sports betting in the United States. However, it faced significant legal challenges, particularly from states seeking to tap into the potential revenue generated by sports gambling. In 2018, the Supreme Court of the United States heard a case brought by New Jersey challenging the constitutionality of PASPA.

In a landmark decision, the Supreme Court ruled that PASPA was unconstitutional, violating the anti-commandeering provisions of the Tenth Amendment. The Court found that the law unconstitutionally dictated state policy by prohibiting states from legalizing sports betting. This ruling effectively repealed PASPA, opening the door for individual states to decide whether or not to legalize and regulate sports wagering within their borders. Following the Supreme Court's decision, numerous states have since moved to legalize and launch their own sports betting markets.