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PASPA and Murphy v NCAA explained

PASPA and Murphy v NCAA are the beginning and end of the federal ban on state-licensed sports betting. PASPA barred states from authorizing sports gambling; on May 14, 2018 the Supreme Court struck the whole law down in Murphy v. NCAA, ruling that Congress can't order state legislatures what laws to keep. Since then, each state decides.

Key takeaways

  • PASPA (28 U.S.C. § 3701 and following) barred states from sponsoring, licensing or authorizing sports gambling, with exceptions for four states.
  • Murphy v. NCAA, decided May 14, 2018, held PASPA violated the Constitution's anticommandeering rule, and the whole statute fell.
  • States now decide on sports betting; most have legalized it in some form, while California, Texas and Georgia have not.
  • Murphy didn't touch the Wire Act, UIGEA or online casino law, and it didn't license offshore sportsbooks.
PASPA citation
28 U.S.C. § 3701 and following
Case
Murphy v. NCAA, Nos. 16-476 and 16-477
Argued
December 4, 2017
Decided
May 14, 2018
Opinion
Justice Alito, for a 6–3 majority on the main judgment
Result
PASPA struck down in full

PASPA and Murphy v NCAA in brief

For a generation, a federal law called the Professional and Amateur Sports Protection Act (PASPA) kept state-licensed sports betting confined to a handful of grandfathered states. New Jersey spent years fighting it. In Murphy v. NCAA, the Supreme Court sided with New Jersey and struck the law down.

The case wasn't really about whether sports betting is good or bad. It was about federal power: whether Congress can tell state legislatures which laws they must keep on the books. The Court said it can't. The result is today's state-by-state sports betting map, explained further on our sports betting laws page and the US gambling laws hub.

What was PASPA?

PASPA was codified at 28 U.S.C. § 3701 and following. It didn't make sports betting a federal crime. Instead, it stopped states from authorizing it and stopped private businesses from running sports betting under state authority.

PASPA's main provisions
SectionWhat it did
§ 3702(1)Barred states and their subdivisions from sponsoring, operating, advertising, promoting, licensing or authorizing by law or compact a sports gambling scheme
§ 3702(2)Barred private persons from sponsoring, operating, advertising or promoting such schemes under the law or compact of a government
§ 3703Let the US Attorney General and sports organizations sue to stop violations (civil, not criminal)
§ 3704(a)(1)–(2)Grandfathered existing sports gambling in four states
§ 3704(a)(3)Gave New Jersey one year to legalize sports betting in Atlantic City, which it did not use

That missed one-year window is part of why New Jersey later had to fight in court. The Senate committee report behind the law is S. Rep. No. 102-248, from 1991.

New Jersey's challenge: from Christie to Murphy

The case reached the Supreme Court as Murphy v. NCAA, named for New Jersey's governor, after an earlier round under his predecessor, Chris Christie. The sports leagues, led by the NCAA, sued each time.

The road to Murphy v. NCAA
StepWhat happened
Constitutional amendmentNew Jersey voters amended the state constitution to let the legislature authorize sports betting
2012 lawNew Jersey authorized sports gambling; the leagues sued under PASPA
Christie I (2013)The Third Circuit rejected New Jersey's anticommandeering argument
2014The Supreme Court declined to review Christie I
2014 lawFramed as a repeal: removed state bans on bets by people 21+ at racetracks and Atlantic City casinos, excluding New Jersey college teams and college events in the state
Third Circuit en bancHeld the 2014 repeal still violated PASPA
December 4, 2017Supreme Court hears argument
May 14, 2018Supreme Court reverses the Third Circuit

New Jersey's clever move was the 2014 "repeal". If PASPA stopped the state from authorizing sports betting, could it at least stop banning it? The lower courts said that was still forbidden authorization. That set up the constitutional question the Supreme Court took. See our New Jersey guide for how its markets work today.

What the Supreme Court decided in Murphy v NCAA

Justice Alito wrote for the Court, joined by Chief Justice Roberts and Justices Kennedy, Thomas, Kagan and Gorsuch. Justice Breyer joined all but one part and wrote separately; Justice Ginsburg dissented, joined by Justice Sotomayor and in part by Justice Breyer. The official opinion is on the Supreme Court site (opens in a new tab), and a full-text copy is also available (opens in a new tab).

  • Anticommandeering: PASPA's ban on states authorizing sports gambling violated the Constitution's rule that Congress can't command state legislatures, a principle drawn from the Tenth Amendment and earlier cases such as New York v. United States and Printz v. United States.
  • Licensing too: the ban on state licensing had the same defect.
  • Not preemption: PASPA wasn't a valid preemption provision, because it didn't regulate private conduct directly.
  • No severability: no part of PASPA could survive on its own, so the whole statute fell.

The practical effect was simple: states may legalize sports betting. What Congress can't do, under this ruling, is order states to keep their own bans.

Sports betting after Murphy: how states responded

New Jersey and Mississippi launched sports betting in 2018, and other states followed year by year. These launch dates come from state regulators and, where marked, third-party trackers.

Selected state sports betting launches after Murphy
StateLaunchNotes
New Jersey2018Statewide mobile, casinos and racetracks (third-party date)
Mississippi2018 (retail, third-party date)Mobile bets only on casino premises
IndianaOctober 2019 (online)Retail from September 2019
IllinoisMarch 202010 online and 12 retail licensees
ColoradoMay 202013 online sportsbooks as of September 2025
MichiganJanuary 22, 2021Launched with online casinos
KansasSeptember 2022Online and retail (third-party date)
OhioJanuary 1, 2023State-licensed online and retail
KentuckySeptember 2023Retail September 7, mobile September 28
VermontJanuary 11, 2024Three mobile operators
North CarolinaMarch 11, 2024 (third-party date)Seven licensed operators
MissouriDecember 1, 2025Online and retail

Models vary widely. Tennessee is online-only, with no physical sportsbooks. Oregon and New Hampshire run sports betting through their lotteries with DraftKings. Florida's only lawful online sportsbook is the Seminole Tribe's Hard Rock Bet. Nevada's sports betting long predates Murphy. Explore Michigan sports betting or New Jersey sports betting for two mature markets.

Where sports betting is still not legal

Murphy gave states a choice, and some have chosen no, or not yet.

  • California: no legal sports betting; bills were inactive in 2026.
  • Texas: no authorization found.
  • Georgia, Alabama, Hawaii, South Carolina, Utah and Minnesota: not legal.
  • Idaho: not among the gambling exceptions in its constitution.
  • Wisconsin: AB 601, signed April 9, 2026, would let bets be placed statewide on tribal servers, but it needs compact amendments, faces a lawsuit, and hadn't launched.
  • Nebraska: in-person only at licensed racetrack casinos; an online sports wagering initiative petition targets the November 3, 2026 ballot, though its qualification wasn't confirmed.
  • South Dakota: retail only in Deadwood and at tribal casinos; a 2026 statewide mobile amendment died in a House committee.

Tribal compacts matter in many of these states, which is why our tribal gaming page is worth a read alongside your state guide on the states hub.

What Murphy v NCAA did not change

Murphy removed one federal law. Everything else stayed in place, and some popular claims about the ruling are wrong.

Myths and facts about Murphy v. NCAA
ClaimReality
Sports betting became legal nationwideIt became a state decision; each state still has to authorize it
Online casinos were legalizedThe case was about sports betting; only seven states license online casinos
The Wire Act went awayThe Wire Act still covers interstate sports bets by betting businesses
UIGEA no longer appliesUIGEA still restricts payments for internet gambling that is unlawful where the bet is made
Offshore sportsbooks are now legalNo offshore sportsbook holds a US state license; Florida and Massachusetts have sent them cease-and-desist letters

Read our explainers on the Wire Act and UIGEA, and see is online gambling legal in the US? for how the pieces fit together.

Prediction markets: the newest fight over sports wagering

A new question has replaced PASPA in the headlines: are sports event contracts on federally regulated exchanges a form of betting that states can police? States increasingly say yes.

  • Maryland sent a cease-and-desist letter to Kalshi on April 7, 2025.
  • Connecticut ordered Kalshi, Robinhood Derivatives and Crypto.com to stop unlicensed sports wagering on December 3, 2025.
  • Nevada's regulator told licensees in late 2025 that sports event contracts are wagers.
  • Kentucky's attorney general sued Kalshi and others in a complaint dated June 17, 2026.

In Congress, the Congressional Research Service counted a long list of 2025–2026 bills on prediction markets and the SAFE Bet Act (S. 1033 and H.R. 2087), which would set federal standards for state-regulated sports betting. None of the prediction-market bills had been enacted by August 2026. Our prediction markets page follows this.

  1. Open your state's guide on the states hub and look at its sports betting section.
  2. Go to your state regulator's list of licensed sportsbooks; if a brand isn't on it, it isn't licensed in your state.
  3. Check the age limit, which is 21 in most licensing states; see gambling age by state.
  4. Note any limits, such as mobile betting only on casino premises in Mississippi or no college bets in Oregon.
  5. Remember that winnings are taxable federal income; see gambling taxes.

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Frequently asked questions

What was PASPA?

PASPA was the Professional and Amateur Sports Protection Act, codified at 28 U.S.C. § 3701 and following. It barred states from sponsoring, licensing or authorizing sports gambling and barred private businesses from running it under state law, with exceptions for four grandfathered states. It wasn't a criminal law: the Attorney General and sports organizations could sue to stop violations. Our sports betting laws page explains what replaced it.

What did the Supreme Court decide in Murphy v NCAA?

It decided that PASPA was unconstitutional. On May 14, 2018, the Supreme Court held that PASPA's ban on states authorizing sports gambling broke the anticommandeering rule, which stops Congress from ordering state legislatures what to do. Because no part of PASPA could be separated out, the whole law fell, and states became free to legalize sports betting. See the US gambling laws hub for related federal statutes.

Who won Murphy v NCAA?

New Jersey won. The case pitted New Jersey's governor, Phil Murphy, against the NCAA and other sports leagues, which had sued to block the state's 2014 law. The Supreme Court reversed the Third Circuit by a 6–3 vote on the main judgment, with Justice Alito writing for the majority. New Jersey launched legal sports betting the same year; see New Jersey sports betting.

Did Murphy v NCAA legalize sports betting everywhere?

No. It only removed the federal ban, so each state still has to pass its own law. Many have, including Michigan, Illinois, Ohio and North Carolina, but California, Texas, Georgia and several others still have no legal sports betting. Some states limit it to retail or tribal venues. Check your state on the states hub and read is online gambling legal in the US?

Did Murphy v NCAA make online casinos legal?

No, the case dealt only with sports betting under PASPA. Online casino games are governed by state law, and only seven states license them: New Jersey, Pennsylvania, Michigan, West Virginia, Delaware, Connecticut and Rhode Island. Maine legalized tribal online casinos in January 2026, but they hadn't launched by October. See states with legal online casinos.

Does the Wire Act still apply after Murphy?

Yes. Murphy struck down PASPA only. The Wire Act still bars betting businesses from using wire communications to send interstate or foreign sports bets, subject to its exemption for information sent between places where the betting is legal. UIGEA also still applies to payments for unlawful internet gambling. Read our Wire Act explainer for the 2011 and 2018 Justice Department opinions and the 2021 court ruling.

What is the anticommandeering doctrine?

It is the constitutional principle that Congress may regulate people directly but can't order state legislatures to pass, keep or repeal laws. The Court in Murphy drew on the Tenth Amendment and earlier cases, including New York v. United States and Printz v. United States. PASPA failed because it told states they couldn't authorize sports betting, which was a command to the states. Our sports betting laws page shows how states used that freedom.

Are offshore sportsbooks legal after Murphy v NCAA?

Murphy didn't license any offshore sportsbook, and none holds a US state license. Florida's regulator says the only lawful online sportsbook in Florida is Hard Rock Bet, and it sent cease-and-desist letters to BetUS, Bovada and MyBookie in February 2025. Offshore sites leave you without a state regulator if a dispute arises. See offshore casinos legality and Florida sports betting.

Why is it called Murphy v NCAA and not Christie v NCAA?

The case took the name of whoever was New Jersey's governor when it reached the Supreme Court, and by then that was Phil Murphy. An earlier round, often called Christie I, came after New Jersey's 2012 sports betting law: the Third Circuit rejected the state's anticommandeering argument in 2013, and the Supreme Court declined review in 2014. New Jersey then passed its 2014 "repeal" law, lost again in the Third Circuit sitting en banc, and won at the Supreme Court on May 14, 2018. Our New Jersey gambling laws page covers what the state did next.

Is sports betting legal in California after Murphy v NCAA?

No, sports betting still isn't legal in California, because Murphy only let states choose and California hasn't authorized it. Sports betting bills were inactive in 2026, and a third-party tracker puts the outlook at 2028. The state's attorney general also concluded in Opinion No. 23-1001, dated July 3, 2025, that paid daily fantasy contests count as sports wagering under Penal Code section 337a. California does have 60 tribal casinos and 91 cardrooms. Players in Los Angeles, San Diego and San Jose can read more on California sports betting and daily fantasy sports laws.

Can Congress ban sports betting again after Murphy v NCAA?

Murphy limits how Congress can act, not whether it can act on sports betting at all. The ruling held that Congress can't order state legislatures to keep their own bans, but the anticommandeering rule doesn't stop federal law from regulating people and businesses directly. Current proposals take that direct route. The SAFE Bet Act (S. 1033 and H.R. 2087) would set federal minimum standards for state-regulated sports betting, and several prediction-market bills would bar sports event contracts on federally regulated exchanges. None had been enacted by August 2026. See prediction markets for the federal bills list.

Do I pay taxes on sports betting winnings since Murphy v NCAA?

Yes, sports betting winnings are taxable federal income, and legalization didn't change that. For 2026, a payer files Form W-2G when sports or other wagering winnings reach $2,000 and are at least 300 times the bet. Regular 24% withholding applies at that 300x level when winnings minus the wager exceed $5,000. You owe tax on smaller wins too, even without a form. From the 2026 tax year, losses are reported to be deductible only at 90% and only up to winnings, so check IRS guidance. Our W-2G form page explains the thresholds.

Are sports prediction markets like Kalshi legal after Murphy v NCAA?

That's the open fight, because Murphy covered state-authorized sports betting, not event contracts on federally regulated exchanges. Several states treat sports contracts as unlicensed wagering. Maryland sent Kalshi a cease-and-desist letter on April 7, 2025, Connecticut ordered Kalshi, Robinhood Derivatives and Crypto.com to stop on December 3, 2025, and Kentucky's attorney general sued Kalshi and others in a June 17, 2026 complaint. In Congress, bills such as the Prediction Markets Are Gambling Act would bar sports contracts on CFTC exchanges, but none had passed by August 2026. Our prediction markets page tracks each action.

Sources