In May 2018, the Supreme Court of the United States overturned the Professional and Amateur Sports Protection Act (PASPA) of 1992. This decision has opened sports betting opportunities nationwide, and many states are now moving quickly to build the regulatory infrastructure that is required to support this type of business. Legalized gambling, in all forms, requires a significant amount of oversight and resources to ensure operators, players, and the public are protected. Regulators will be watching for a variety of issues including consumer protection, data protection, money laundering, and sanctions concerns. Presently, six states allow full-scale legalized sports betting, four have recently passed bills that will allow it in the near future, and 16 others have introduced pending legislation.
From a litigation perspective, opening and gaining licensure for a sports book can be a murky endeavor, even in a bull market for the expansion of sports betting. While the state of New Jersey saw $95 million in betting in August via web-based and in-person betting, the southern New Jersey-based owners of the sole destination that state legislators have deemed eligible for sports betting are embroiled in a lawsuit that may be indicative of future local battles across any state that legalizes sports betting (Cherry Hill Towne Center Partners, LLC v. GS Park Racing, L.P.).
