 {"id":2337,"date":"2018-03-15T02:07:03","date_gmt":"2018-03-15T02:07:03","guid":{"rendered":"https:\/\/live-journal-of-law-and-public-policy.pantheonsite.io\/?p=2337"},"modified":"2018-03-15T02:07:03","modified_gmt":"2018-03-15T02:07:03","slug":"christie-v-ncaa-and-the-implications-of-legal-sports-betting","status":"publish","type":"post","link":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/2018\/03\/15\/christie-v-ncaa-and-the-implications-of-legal-sports-betting\/","title":{"rendered":"Christie v. NCAA and the Implications of Legal Sports Betting"},"content":{"rendered":"<span style=\"font-weight: 400\">In 1992, Congress passed the <\/span><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/28\/part-VI\/chapter-178\"><span style=\"font-weight: 400\">Professional and Amateur Sports Protection Act<\/span><\/a><span style=\"font-weight: 400\"> (&#8220;PAPSA&#8221;), prohibiting states from authorizing, licensing, regulating, and controlling sports betting. The Act grandfathered in states that had previously legalized sports betting &#8211; Nevada, Oregon, and Delaware &#8211; and offered an exemption to New Jersey if they enacted legislation within a year. The state <\/span><a href=\"https:\/\/www.law.cornell.edu\/supct\/cert\/16-476\"><span style=\"font-weight: 400\">failed to do so<\/span><\/a><span style=\"font-weight: 400\">, and continued to prohibit sports betting within its borders.<\/span>\n\n<span style=\"font-weight: 400\">In 2010, the state changed course and <\/span><a href=\"http:\/\/www.nj.com\/news\/index.ssf\/2010\/12\/nj_voters_to_decide_on_legaliz.html\"><span style=\"font-weight: 400\">initiated a referendum<\/span><\/a><span style=\"font-weight: 400\"> among its voters asking whether sports betting should be legalized in the state. The referendum was <\/span><a href=\"http:\/\/www.nj.com\/news\/index.ssf\/2011\/11\/nj_residents_vote_on_legalizin.html\"><span style=\"font-weight: 400\">approved<\/span><\/a><span style=\"font-weight: 400\"> by a wide margin. In response, the Legislature passed the <\/span><a href=\"https:\/\/ballotpedia.org\/New_Jersey_Sports_Betting_Amendment,_Public_Question_1_(2011)\"><span style=\"font-weight: 400\">Sports Wagering Act in 2012<\/span><\/a><span style=\"font-weight: 400\">, which legalized sports betting in private casinos and racetracks across the state. The NCAA, NFL, NHL, and MLB (&#8220;NCAA&#8221;) sued the Governor of New Jersey and various state officials (<\/span><a href=\"http:\/\/www2.ca3.uscourts.gov\/opinarch\/131713p.pdf\"><i><span style=\"font-weight: 400\">Christie I<\/span><\/i><\/a><span style=\"font-weight: 400\">), alleging that the Act violated PAPSA. The state admitted that the Sports Wagering Act violated PAPSA, but argued that PAPSA was unconstitutional because it violated the <\/span><a href=\"http:\/\/www.scotusblog.com\/2017\/08\/symposium-time-abandon-anti-commandeering-dont-count-supreme-court\/\"><span style=\"font-weight: 400\">anti-commandeering doctrine<\/span><\/a><span style=\"font-weight: 400\"> of the <\/span><a href=\"https:\/\/www.constituteproject.org\/constitution\/United_States_of_America_1992\"><span style=\"font-weight: 400\">Tenth Amendment<\/span><\/a><span style=\"font-weight: 400\">. The doctrine prohibits the federal government from requiring states or state officials to adopt or enforce federal law. The NCAA argued that PAPSA did not require the state to do anything, it just prohibited them from passing certain legislation. The Third Circuit <\/span><a href=\"http:\/\/www2.ca3.uscourts.gov\/opinarch\/131713p.pdf\"><span style=\"font-weight: 400\">agreed<\/span><\/a><span style=\"font-weight: 400\">, drawing a distinction between repeals (of a law) and affirmative authorizations (a state enacting legislation). The Court <\/span><a href=\"http:\/\/www2.ca3.uscourts.gov\/opinarch\/131713p.pdf\"><span style=\"font-weight: 400\">reasoned<\/span><\/a><span style=\"font-weight: 400\"> that PAPSA did not violate the anti-commandeering doctrine because it only prohibits affirmative authorizations, but not repeals. Not a single case the Court referenced in its opinion had invalidated a law that, like PAPSA, simply operated to invalidate state laws. Therefore, it struck down the Sports Wagering Act. The state filed a petition for writ of certiorari to have the Supreme Court review the case, but the Court <\/span><a href=\"http:\/\/blogs.findlaw.com\/third_circuit\/2014\/06\/nj-sports-betting-case-denied-cert-nj-enacts-work-around.html\"><span style=\"font-weight: 400\">denied the petition<\/span><\/a><span style=\"font-weight: 400\">.<\/span>\n\n<span style=\"font-weight: 400\">Upon this directive, New Jersey legislators passed <\/span><a href=\"http:\/\/www.njleg.state.nj.us\/2014\/Bills\/S2500\/2460_I2.PDF\"><span style=\"font-weight: 400\">SB 2460<\/span><\/a><span style=\"font-weight: 400\"> in 2014, which repealed longstanding state prohibitions on sports gambling. It effectively allowed sports gambling in casinos and racetracks and also required sports bettors to be twenty-one years old. The NCAA and other leagues filed suit once again (<\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><i><span style=\"font-weight: 400\">Christie II<\/span><\/i><\/a><span style=\"font-weight: 400\">), alleging the repeal of these laws was in effect an affirmative authorization which violated PAPSA. Once again, the Third Circuit <\/span><a href=\"http:\/\/www2.ca3.uscourts.gov\/opinarch\/144546p.pdf\"><span style=\"font-weight: 400\">agreed<\/span><\/a><span style=\"font-weight: 400\"> with the NCAA&#8217;s argument, ruling that the state had affirmatively authorized sports gambling in violation of PAPSA by repealing the laws prohibiting sports gambling. The Court did disclaim the formal distinction between repeals and affirmative authorizations in <\/span><i><span style=\"font-weight: 400\">Christie I<\/span><\/i><span style=\"font-weight: 400\">, but still confirmed that PAPSA does not violate the anti-commandeering doctrine. The state filed another petitioner for writ of certiorari, and this time the Supreme Court <\/span><a href=\"https:\/\/www.politico.com\/states\/new-jersey\/story\/2017\/06\/27\/us-supreme-court-agrees-to-hear-nj-sports-betting-case-113072\"><span style=\"font-weight: 400\">agreed to hear the case<\/span><\/a><span style=\"font-weight: 400\">. <\/span><a href=\"https:\/\/www.supremecourt.gov\/oral_arguments\/argument_transcripts\/2017\/16-476_4fb4.pdf\"><span style=\"font-weight: 400\">Oral arguments<\/span><\/a><span style=\"font-weight: 400\"> were held on December 4, 2017, and the Court is <\/span><a href=\"https:\/\/www.legalsportsreport.com\/16737\/nj-sports-betting-scotus-preview\/\"><span style=\"font-weight: 400\">expected<\/span><\/a><span style=\"font-weight: 400\"> to render a decision by the end of June.<\/span>\n\n<span style=\"font-weight: 400\">The <\/span><a href=\"https:\/\/www.law.cornell.edu\/supct\/cert\/16-476\"><span style=\"font-weight: 400\">crux<\/span><\/a><span style=\"font-weight: 400\"> of the state&#8217;s argument is that Congress cannot commandeer state law in pursuit of federal legislative goals. The state argues that the Third Circuit&#8217;s holding is an overly formalistic view of the anti-commandeering doctrine and incompatible with the principles of the Tenth Amendment. To support the argument, it relies on <\/span><a href=\"http:\/\/www.scotusblog.com\/wp-content\/uploads\/2016\/10\/16-476-op-below-3d-cir.pdf\"><span style=\"font-weight: 400\">cases<\/span><\/a><span style=\"font-weight: 400\"> that have held anti-commandeering analysis turns on whether a federal law effectively controls or influences how states govern, and not on whether the law requires an affirmative act. The NCAA <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">disagrees<\/span><\/a><span style=\"font-weight: 400\">, relying on their previous argument that PAPSA does not obligate New Jersey to adopt any regulatory scheme whatsoever, but simply prevents them legalizing sports betting.<\/span>\n\n<span style=\"font-weight: 400\">The fact that the Supreme Court decided to hear the case is <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">telling<\/span><\/a><span style=\"font-weight: 400\">. The Court accepts to hear around <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">one percent<\/span><\/a><span style=\"font-weight: 400\"> of cases each year, meaning the Court believes the state\u2019s argument has real merit. Additionally, the current Court is <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">arguably conservative<\/span><\/a><span style=\"font-weight: 400\"> and at times <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">skeptical of federal government power<\/span><\/a><span style=\"font-weight: 400\">. If New Jersey wins, it would cause <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">an influx<\/span><\/a><span style=\"font-weight: 400\"> of revenue that could be used for various state programs and initiatives considering &#8220;the house&#8221; usually wins bets. Additionally, if the Court overrules PAPSA, it would open the door for other states to adopt sports betting laws. To that effect, representatives in Michigan, New York, and South Carolina <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">have introduced legislation<\/span><\/a><span style=\"font-weight: 400\"> adopting various sports betting models. A big gamble by New Jersey may pay off in the next couple weeks, <\/span><a href=\"https:\/\/www.si.com\/nfl\/2017\/06\/27\/supreme-court-review-sports-betting-gambling-ban-new-jersey-chris-christie\"><span style=\"font-weight: 400\">changing the landscape of the sports betting world<\/span><\/a><span style=\"font-weight: 400\"> forever.  <\/span>\n\n&nbsp;\n\nSuggested Citation: Andrew Saba<span class=\"s1\">, <em>Christie v. NCAA and the Implications of Legal Sports Betting<\/em>, <\/span><span class=\"s2\">Cornell J.L. &amp; Pub. Pol\u2019y, The Issue Spotter<\/span><span class=\"s1\">, (Mar. 15, 2018), https:\/\/live-journal-of-law-and-public-policy.pantheonsite.io\/christie-v-ncaa-and-the-implications-of-legal-sports-betting\/.<\/span>","protected":false},"excerpt":{"rendered":"<p>In 1992, Congress passed the Professional and Amateur Sports Protection Act (&#8220;PAPSA&#8221;), prohibiting states from authorizing, licensing, regulating, and controlling sports betting. The Act grandfathered in states that had previously legalized sports betting &#8211; Nevada, Oregon, and Delaware &#8211; and offered an exemption to New Jersey if they enacted legislation within a year. The state&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14,15,16,17,18,19,27,28,1],"tags":[193,1077,1150,1351,1473],"class_list":["post-2337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archives","category-authors","category-blog-news","category-certified-review","category-feature","category-feature-img","category-recent-stories","category-student-blogs","category-uncategorized","tag-betting","tag-ncaa","tag-papsa","tag-sb-2460","tag-supreme-court"],"acf":[],"_links":{"self":[{"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/posts\/2337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/comments?post=2337"}],"version-history":[{"count":0,"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/posts\/2337\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/media\/2338"}],"wp:attachment":[{"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/media?parent=2337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/categories?post=2337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/publications.lawschool.cornell.edu\/jlpp\/wp-json\/wp\/v2\/tags?post=2337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}