The Professional and Amateur Sports Protection Act (PASPA): How Its Repeal Changed Sports Betting in the United States
The Professional and Amateur Sports Protection Act (PASPA), also known as the Bradley Act, was a federal law enacted in 1992 that effectively outlawed sports betting across most of the United States. The law prohibited states from authorizing or licensing sports betting, with exceptions granted to four states: Nevada, Oregon, Delaware, and Montana. Of these, only Nevada had a robust, fully legal sports betting market. The intention behind PASPA was to protect the integrity of professional and amateur sports by limiting the influence of gambling.
PASPA’s Legal Framework and Exceptions
PASPA did not make sports betting a federal crime for individuals. Instead, it prevented state governments from regulating or endorsing sports betting operations. States that had pre-existing legal sports wagering before 1991 were grandfathered in. This allowed Nevada to maintain its legal sportsbook industry, while Delaware and Oregon operated limited sports betting through lottery-based systems. New Jersey was given a one-year window to legalize sports betting but failed to act within the time frame.
The Growing Pushback and New Jersey’s Legal Battle
By the late 2000s and early 2010s, opposition to PASPA began to grow, particularly in New Jersey. Faced with budget shortfalls and declining casino revenues in Atlantic City, New Jersey passed a voter referendum in 2011 supporting sports betting. In response, the state enacted legislation to legalize sports betting at casinos and racetracks. This move was immediately challenged by major sports leagues, including the NFL, NBA, MLB, NHL, and NCAA, who argued that it violated PASPA.
A lengthy legal battle ensued. New Jersey’s attempts to bypass PASPA were repeatedly struck down in court, but the state persisted. The case eventually reached the U.S. Supreme Court under the title Murphy v. National Collegiate Athletic Association.
The Repeal of PASPA in 2018
In May 2018, the U.S. Supreme Court ruled in a 6-3 decision that PASPA was unconstitutional. The court found that the law violated the Tenth Amendment by commandeering state legislatures and preventing them from regulating their own policies. The repeal of PASPA did not automatically legalize sports betting nationwide, but it gave each state the authority to regulate and legalize sports betting within its own borders.
The Impact of the Repeal
The overturning of PASPA ushered in a new era for sports betting in the United States. Since 2018, over 30 states and the District of Columbia have legalized some form of sports betting, whether retail, online, or both. States like New Jersey, Pennsylvania, Illinois, and New York have developed massive sports betting markets, generating billions of dollars in handle and hundreds of millions in tax revenue.
The legalization has also led to increased partnerships between sportsbooks and professional sports leagues, teams, and media outlets. Betting advertisements have become common during broadcasts, and integrated odds and data feeds are now a regular part of sports coverage.
Regulatory Framework Post-PASPA
Each state that legalizes sports betting establishes its own regulatory framework, including licensing procedures, tax structures, consumer protections, and enforcement measures. Some states, like New Jersey and Colorado, have implemented open and competitive markets with numerous licensed operators. Others, such as New Hampshire and Oregon, have limited betting to state-run platforms or single providers.
The federal government has largely taken a hands-off approach post-PASPA, though discussions around federal oversight continue.
The Future of Sports Betting in the U.S.
The repeal of PASPA has permanently altered the American sports landscape. With increasing technological integration, in-play betting, and mobile platforms, the industry is poised for continued growth. However, challenges remain, including concerns about problem gambling, data integrity, and potential regulatory disparities across states.
As more states consider legalization and the industry matures, the legacy of PASPA serves as a reminder of the evolving relationship between sports, law, and gambling in the United States.
