National Collegiate Athletic Ass'n v. Governor of New Jersey
832 F.3d 389
3rd Cir.2016Background
- Congress enacted PASPA in 1992 to prohibit state-sanctioned sports gambling, making it unlawful for a "governmental entity" to "sponsor, operate, advertise, promote, license, or authorize by law or compact" sports betting. 28 U.S.C. § 3702.
- New Jersey had long prohibitions on sports wagering; voters approved a 2011 constitutional amendment permitting the Legislature to "authorize by law" limited wagering at Atlantic City casinos and certain racetracks.
- New Jersey enacted a 2012 regulatory scheme (the 2012 Law) authorizing and licensing sports wagering; courts enjoined that law as violating PASPA in Christie I (730 F.3d 208).
- In 2014 the Legislature passed SB 2460 (the 2014 Law), framed as a partial repeal: it removed certain state prohibitions to allow sports wagering at casinos and racetracks for persons 21+, but retained bans on wagering on New Jersey college teams and collegiate events in NJ.
- Sports leagues sued to enjoin the 2014 Law. The district court held the 2014 Law violated PASPA; on rehearing en banc, the Third Circuit affirmed, holding the 2014 Law "authorizes by law" sports gambling and that PASPA is not an unconstitutional commandeering of the states.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2014 Law violates PASPA by "authorizing by law" sports gambling | Leagues: the 2014 Law selectively removes prohibitions and thus authorizes sports wagering (and effectively licenses it by limiting venues and persons). | New Jersey: the statute is a repeal (not an affirmative authorization) consistent with Christie I; repeal is permitted and does not equate to "authorization by law." | The en banc court held the 2014 Law authorizes sports gambling in violation of PASPA because it permits conduct otherwise fully prohibited and selectively empowers certain venues/persons. |
| Whether PASPA impermissibly "commandeers" state legislatures in violation of the Tenth Amendment | New Jersey: if repeal is treated as authorization, PASPA effectively forces states to keep prohibitions, which commandeers state lawmaking. | Leagues/United States: PASPA prohibits certain state acts but does not coerce states to enact or enforce federal programs; it regulates state activity without commandeering. | The court reaffirmed Christie I: PASPA does not unconstitutionally commandeer the states; it prohibits certain state actions but does not impose a coercive obligation to legislate or enforce. |
Key Cases Cited
- National Collegiate Athletic Ass’n v. Governor of New Jersey, 730 F.3d 208 (3d Cir. 2013) ("Christie I" — earlier Third Circuit decision construing PASPA and anti‑commandeering arguments)
- New York v. United States, 505 U.S. 144 (1992) (federal statute impermissibly commandeering states struck down)
- Printz v. United States, 521 U.S. 898 (1997) (interim federal directives to state officers violate anti‑commandeering)
- Hodel v. Virginia Surface Mining & Reclamation Ass’n, Inc., 452 U.S. 264 (1981) (permissible federal regulation in a pre‑emptible field that leaves states a choice)
- F.E.R.C. v. Mississippi, 456 U.S. 742 (1982) (similar principle regarding federal standards and state choice)
- South Carolina v. Baker, 485 U.S. 505 (1988) (upholding federal prohibition that regulated state activity)
- Reno v. Condon, 528 U.S. 141 (2000) (upholding federal restriction on state release of DMV data as regulation of state activity)
- Ex parte Young, 209 U.S. 123 (1908) (permit prospective suits against state officers to enjoin ongoing federal‑law violations)
