PASPA is an acronym for the Professional and Amateur Sports Protection Act, a federal US law that became effective on October 28th, 1992. Its nickname is the Bradley Act, after former New Jersey senator and NBA star Bill Bradley, its main sponsor. The goal of PASPA was to enact an effective nationwide ban on sports betting. Only licensed sports pools in Nevada and sports lotteries conducted in Montana, Delaware, and Oregon got exempted from this law, which prohibited the promotion, operation, and licensing of sports gambling.
In May of 2018, PASPA got repealed by the US Supreme Court thanks to a ruling in Murphy versus the National Collegiate Athletic Association. The Garden State had been an adamant proponent of the legalization of sports gambling since 2010. Its 56th governor, Philip Murphy, took over the work done by his predecessor Chris Christie and saw through the Supreme Court case initiated in 2016, in which New Jersey argued that PASPA seized power from US states, limiting their economic potential. The Supreme Court 2018 ruling upheld a 2014 New Jersey law that allowed sports betting at racetracks and casinos in the state and brought upon a sportsbook revolution in the US.
History of PASPA & Its Scope
It is crucial to understand that, as its name suggests, PASPA only prohibited sports gambling on a federal level. US states have always had the power to legalize other forms of land-based betting as they see fit. However, until recently, interpretations of the federal Wire Act of 1961 limited their passing of laws that permitted gambling over the internet. That has since changed through a 2011 Department of Justice clarification that made online casinos in the United States possible.
Furthermore, PASPA never does mention that sports gambling is illegal or that anyone should suffer consequences for engaging in this activity. What it did do is forbid US states from passing laws that made it legal. Yet, it did not include any restrictions regarding dog and horse racing, which is why these two gambling sectors have been present for decades in multiple states. PASPA defined sports as professional and college competitions.
The origins of this law date back to the 1980s. During that decade, multiple notable lawmakers voiced concerns regarding sports gambling running rampant throughout the US. NBA commissioner David Stern was one of the most massive proponents of a federal law that would aim to prohibit sports betting. As mentioned, former basketball player Bill Bradley, who in the early 1990s was a New Jersey senator, was of the same mindset. Thus, in 1991, he introduced a version of the Professional and Amateur Sports Protection Act, arguing that sports gambling should not be allowed even in Las Vegas.
Many criticized PASPA, claiming that it was a clear case of federal government overreach. Nevertheless, despite some strong opposition, it swiftly moved through the Senate and House. It got signed into law by then-president George Herbert Walker Bush.
The Effects of PASPA’s Repeal
In the days leading up to when the Supreme Court announced its decision in Murphy versus the National Collegiate Athletic Association, it was clear that PASPA will go into the annals of history. Some states had already prepared bills for legalizing sports betting even before this monumental ruling got made. Less than a month following that occurrence, Delaware became the first US state outside of Nevada to permit licensed operators to accept wagers on sporting events. New Jersey filed a sports betting legalization bill the same day PASPA got repealed, but it had to undergo several revisions. It eventually got signed into law by Governor Philip Murphy a week after Delaware’s landmark bill.
Currently, in the three years following the disappearance of PASPA, over two dozen US states have allowed their licensed gambling operators to accept bets on sports markets. However, many of them only permit in-person wagering. That means that they have not yet legalized this activity in its online form. That said, budget shortfalls are making many states re-consider such a move as they look to find new tax revenue streams.
In 2018, market research firm Ibis World projected that a fully legal US sports betting market would pull in annual revenues of $55 billion. That same year, the AGA estimated that the number of illegal sports wagers placed in the US came up to $150 billion. Thus, Ibis World’s projection does not seem that unreasonable. All that said, today’s US market is still far from such figures.
About the Author
Shelly Schiff has been working in the gambling industry since 2009, mainly on the digital side of things, employed by OnlineUnitedStatesCasinos.com. However, over her eleven-year career, Shelly has provided content for many other top interactive gaming websites. She knows all there is to know about slots and has in-depth knowledge of the most popular table games. Her golden retriever Garry occupies most of her leisure time. Though, when she can, she loves reading Jim Thompson-like crime novels.
