In 1992, Congress passed the Professional and Amateur Sports Protection Act (PASPA). Although there were Federal Statutes, such as the Broadcasting Lottery Information statute, which preceded it, PASPA was considered the controlling law that prevented Sports Gambling in America. The following three federal court cases have become the most impactful cases against both of PASPA and the Broadcasting Lottery Information statute. Effectively, these three court decisions have become the most important cases in allowing sportsbooks to operate and advertise their products.
Most important is Murphy v. National Collegiate Athletic Association (NCAA), which made Sports Gambling legal on the federal level in 2018. In Murphy v. NCAA, the NCAA and other major governing sports bodies (the National Football League, the National Basketball Association, the National Hockey League, and the Office of the Commissioner of Baseball) brought action against then NJ Governor, Chris Christie, after Governor Christie passed the 2012 Sports Wagering Act to legalize Sports Gambling in the state of New Jersey. PASPA had originally included NJ as one of its exempt states if NJ had enacted legislation within a year. However, NJ did continue to prohibit Sports Gambling in its Constitution and by statute until the 2012 Sports Wagering Act.
The other major federal barrier to sports gambling was the Broadcasting Lottery Information statute, which was a broad law passed in 1933 and overseen by the Federal Communications Commission (FCC). The 1999 Supreme Court case, Greater New Orleans Broadcasting Ass'n, Inc. v. U.S., became the first case that discussed and analyzed both PASPA and the Broadcasting Lottery Information statute. While it was critical of both statutes the Court did not explicitly rule either statute unconstitutional in its opinion. However, in 2001, Utah Licensed Beverage Ass'n v. Leavitt, ruled the Broadcasting Lottery Information statute unconstitutional.
The cases below are cases prior to the landmark Supreme Court decision of Murphy, which unsuccessfully made direct challenges to gambling laws. First, National Football League, made a challenge to a Delaware lottery game, which was based on the outcome of National Football League games. This case predates PASPA and is primarily used to illustrate the difficulties states faced early on against the legality of sports related wagers due to public policy reasons. Next, are direct challenges to PASPA. In Office of the Commissioner of Baseball, the state of Delaware unsuccessfully challenged PASPA based on statutory interpretation. However, Interactive Media Entertainment & Gaming Association (iMEGA), also challenged the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 and became the first case that challenged PASPA for Constitutional reasons when it brought suit against United States Attorney General Eric Holder. Despite this, iMEGA, was unsuccessful at the District court level and lost its appeal to the 3rd Circuit as well.
The cases below are cases that challenged the 1933 Federal Communication Commission (FCC) statute, Broadcasting Lottery Information. The first relevant case, Greater New Orleans Broadcasting Ass'n, Inc., questions the Constitutionality of PASPA as well. However, it was not a core issue of the case, the right to advertise was, therefore, the Supreme Court ruled on the legality of advertising legal gambling at local casinos. Next, Utah Licensed Beverage Ass'n, became the case that officially ruled the Broadcasting Lottery Information statute unconstitutional.
