US Supreme Court repeal of PASPA
US Supreme Court repeal of PASPA
On Monday, May 14, 2018, the Supreme Court of the United States held in the Murphy v. National Collegiate Athletic Association case that the federal Professional and Amateur Sports Protection Act (“PASPA”) violated the Tenth Amendment of the U.S. Constitution.
The Tenth Amendment limits the power of the federal government to that which is granted to it by the U.S. Constitution. In other words, the court held that the federal government exceeded its authority by enacting a federal law restricting the ability of states to regulate sports betting because the U.S. Constitution does not give the federal government this power. As a result, PASPA is no longer enforceable against states, businesses or individuals.
Notably, however, the court ruling does not, in itself, change the legality of sports betting anywhere. It simply makes it possible for individual states to pass statutes that would legalize sports gambling within their borders. Some states such as New Jersey, West Virginia and Pennsylvania have already taken steps to legalize and regulate sports gambling. Meanwhile, other states such as New York, Connecticut, Illinois, Rhode Island, Delaware, Mississippi and Massachusetts may soon follow.
From an e-payments perspective, this raises some interesting legal questions. Because the Supreme Court decision simply overturns a federal law that prohibited states from allowing sports betting, it remains up to each state to decide whether and how it will allow sports betting in the future. The states that have so far proposed legalizing sports betting intend to license only a limited number of entities to offer sports betting in environments like race tracks or casinos. While some bills are encouraging mobile and online betting options, these will be harder to regulate because of the difficulty behind restricting online betting in jurisdictions where it remains illegal. Without these options, however, gambling advocates warn that bettors will still turn to offshore accounts and illegal bookmakers.
In one key state where legislation is currently pending, New Jersey, sportsbooks will be able to take bets via phone or computer, but not right away. There will be a licensing process that could take weeks — possibly a few months — before books will be able to take bets remotely. Even then, only intrastate wagers will be permitted.
Because of the time and complexity behind applying for a license in New Jersey or other states that may soon follow its example to offer online sports betting and related payment services, entities interested in being among the first to process online sports betting payments in states where it may soon be permitted are encouraged to contact the experts at Gropay who can assist with all aspects of the local licensing and regulatory processes. We have payments lawyers licensed to practice in multiple states who can provide you with expert guidance and support to navigate the complex process.
YOU MIGHT ALSO LIKE
ASSAULT AGAINST DATA BROKERS LAUNCHED BY PRIVACY INTERNATIONAL COMPLAINTS ALLEGING GDPR NON-COMPLIANCE
ASSAULT AGAINST DATA BROKERS LAUNCHED BY PRIVACY INTERNATIONAL COMPLAINTS ALLEGING GDPR NON-COMPLIANCE Privacy International, a UK-based activist group, complained in early November 2018 that a number of data brokers, ad-tech companies and credit-reference agencies...read more
GDPR for Payments GDPR is an important EU wide regulatory mandate. It provides increased protection of individual privacy and gives individuals more control over the information they share. In our view GDPR is an important element of building a scalable data centric...read more
MasterCard introduces changes for subscription and card on file transactions that will help to significantly increase online merchant’s revenues Recurring (subscription) and returning (card on file) transactions are a growing part of online merchant revenue streams....read more
GROPAY'S 5 TIPS FOR THE HOLIDAY SEASON With all the preparations for the holiday, last week deadlines, the multitude of drinks, parties, last minute shopping as well as high expectations from family and friends, it is easy to get lost in this busy time before the...read more
THE PAYMENT CHALLENGES OF OTAs Who hasn’t used an online travel agency (OTA) in the last 12 months? They are an integral part of our lives and are part of a colossal $600 billion + a year online travel market. The OTA industry is at a juncture where it faces some...read more
Strong Customer Authentication (SCA) - Impact on Online Merchants The details around the European Banking Authority (EBA’s) proposal for Strong Customer Authentication (SCA) are final and the requirements for SCA are expected to come into force by February 2019. What...read more
Did Star Trek predict bitcoins and what does it mean for the future? If you are like me, a Star Trek fan then it’s interesting to note that many of the futuristic technologies and gadgets used on the show have come true or are close to coming true. This is likely more...read more
India Makes Important Advances in Biometric Payments In India it’s already possible for a consumer to authorise and authenticate a payment with their fingerprint or iris scan. As a largely cash based economy India has leapfrogged the use of Cards and Smart Phones for...read more
How do bitcoins impact online merchants? There’s a lot that has been said and written about bitcoins. They are the talk of the town these days. Undoubtedly bitcoins and related distributed ledger technologies will have a lasting impact on payments and financial...read more
PSD2 What Will Really Change? There has been a lot written about the PSD2 and rightly so, it is important regulation soon to be enacted into legislation that will bring significant innovation and change to electronic payments. But what will actually change in the day...read more
SafeCharge 3 Years After IPO In this post we look at SafeCharge, a medium sized payment processor and recently formed acquirer. We look at the following items; history, the IPO, recent performance, drivers of growth so far, recent strategic moves and execution...read more
The Stamina of Clinton Or Trump There have been lot of comments made by presidential candidate Donald Trump triggering a lot of media attention and public debates recently. Not the most notorious comment, but still one that made me pause in the work I was doing....read more
GDPR - Data Protection Gets Serious On 14 April 2016, the EU Parliament adopted the long awaited General Data Protection Regulation (GDPR) The GDPR will have considerable impact on all companies that provide goods or services to Europe, regardless of the company’s...read more
Authentication - Payer! Reveal Thyself EPC releases results of latest consultations for e-mandate today: what does this mean for authentication and your online business? Earlier today, 5 April 2016, the European Payments Council (EPC) announced the launch of the...read more
Fantasy Sports - It's All A Fantasy Fantasy Sports continue to gain popularity California recently introduced a bill to allow online sports betting. The motivation of this bill is believed to be the increasing popularity of fantasy sports. Although, the bill has yet...read more
Cash - Kicking The Habit There was an interesting article in The Economist recently about strikes on the London Underground (Tube). Such strikes are commonly believed to have a short term net cost to the economy. However the article quoted a study by Oxford and...read more
Data Protection - To Russia With Love Data Protection Russia Russia’s new data protection law came into effect on the 1st of September 2015. It’s now required by law to store personal details of Russian citizens on servers physically located in Russia. Copies of the...read more
I had a manager once who was a real mover and shaker in HR, brilliant in strategy and amazing to work with. Although visionary in his business outlook, there were some basic things that could really set him off when meeting new people: things like scruffy shoes. You...read more
Are Tattoos ever OK at work? I was HR Director at a large organization when I suddenly completely got caught by a curb ball thrown by one of my main stakeholders. “What is our HR policy on tattoos?” I had to take a two second pause before responding with a gigantic...read more
Wirecard with a market value of $ 5.2 billion made a $9 billion bid for Worldpay. Is this a serious bid? What will Wirecard do with Worldpay? Wirecard has extensive experience with M&A and also in acquiring companies larger than itself and making it a success; as...read more
Changing jobs - How long should you stay in your current job? In this day and age, most employees are not even aware that organisations used to have tenure incentives like a fancy watch, a toaster or at least a bunch of flowers when you reached your 20 or 25 years of...read more
Distracted Living Psychology Today published an interesting blog on distracted living. Distracted living is where you miss out on much of your life because you generally aren’t paying attention, or your attention is so torn in many directions that your really do not...read more
Is Visa worried about Paypal? Visa recently published a report on Visa Checkout in which they stated that Visa Checkout delivers 17% better conversion than Paypal. One of the interesting points about this report is that Visa considers Paypal as enough of a threat to...read more
How do I deal with my company going through a merger or acquisition? Working in the payments sector? There is a big chance that your company is engaged in a merger, is taking over another company or is about to become an acquisition. 2014 was a big year for payments...read more