The Supreme Court and the Legalization of Sports Betting in the United States
The landmark Supreme Court decision in Murphy v. National Collegiate Athletic Association (2018) reshaped the legal and commercial landscape of sports betting across the United States. Prior to this ruling, the Professional and Amateur Sports Protection Act (PASPA) of 1992 had effectively banned sports wagering in most states, granting Nevada a near-monopoly on legal sports betting. The Supreme Court’s ruling not only overturned PASPA but also granted individual states the authority to legalize and regulate sports betting as they see fit, leading to a rapid and unprecedented expansion of the industry nationwide.
The Legal Battle: Murphy v. NCAA
The case was initiated by the state of New Jersey, which had long been seeking to legalize sports betting to revitalize its struggling casino industry in Atlantic City. PASPA prohibited states from authorizing sports gambling, but New Jersey argued that this federal law violated the Tenth Amendment by commandeering state legislative processes. The Supreme Court agreed in a 6–3 decision, striking down PASPA as unconstitutional. Justice Samuel Alito, writing for the majority, stated, “Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own.”
Impact on State Legislation
Following the decision, states across the country quickly moved to introduce sports betting legislation. As of 2025, more than 35 states and the District of Columbia have legalized sports betting in some form, including both retail sportsbooks and online platforms. States like New Jersey, Pennsylvania, Illinois, and Michigan have become major hubs for online and mobile sports betting, generating billions in handle and hundreds of millions in tax revenue.
Economic and Regulatory Implications
The growth of legal sports betting has spurred economic activity through licensing fees, taxes, job creation, and partnerships between sportsbooks and sports leagues. States have adopted varying models of regulation, some allowing competitive private markets (like New Jersey and Colorado), while others opt for state-run monopolies or limited operator access.
Meanwhile, the American Gaming Association and various state commissions have emphasized responsible gambling initiatives and consumer protections. Regulatory frameworks now require identity verification, geolocation compliance, anti-money laundering protocols, and mechanisms for self-exclusion and problem gambling support.
Influence on Professional Sports Leagues
Initially opposed to legalized sports betting, major leagues like the NFL, NBA, MLB, and NHL have since embraced the new reality. They have entered into lucrative partnerships with sportsbooks, allowing access to official data and in some cases, permitting on-site betting lounges. The integration of betting odds into sports broadcasts and media has become increasingly common, blurring the lines between entertainment and wagering.
Future Legal Challenges and Federal Considerations
Although the Supreme Court granted states the authority to regulate sports betting, questions remain about the potential for federal oversight. Proposals have occasionally surfaced in Congress advocating for national standards on integrity monitoring, advertising, and data usage. Additionally, ongoing debates around college sports betting, integrity fees, and tribal sovereignty in gaming continue to shape the legal discourse.
Conclusion
The Supreme Court’s decision in 2018 was a pivotal moment for the U.S. gaming industry. It catalyzed a wave of legal reform, innovation, and economic opportunity while presenting new regulatory and ethical challenges. As the legal environment continues to evolve, the balance between commercial expansion and responsible governance remains at the forefront of the sports betting conversation.
