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On January 17, 1920, the 18th Amendment went into effect, marking the beginning of alcohol prohibition in the United States. This prohibition led to the manufacture, sale and distribution of alcohol being illegal in the United State.

Initially, there was a decline in legal drinking, but it did not disappear entirely. Instead, those who wished to indulge in alcoholic beverages turned to the thriving black market, which was run by organized crime syndicates and bootleggers. Unfortunately, this unregulated marketplace lacked consumer protections which caused significant issues for industry and the public.  Some batches of illegally produced alcohol, including bathtub gin, were mixed with industrial-strength alcohol intended for fuel. As a result, people suffered from blindness and even death.

The Prohibition Era lasted for 13 years, until December 5, 1933, when the 21st Amendment was ratified, effectively repealing the 18th Amendment and bringing an end to alcohol prohibition.

Although many people think this is the only instance of “prohibition” in the United States, that simply isn’t true.  Another prohibition on a favorite American pastime occurred in 1992 and lasted twice as long as the alcohol ban.

Sports betting has long been a popular pastime for sports enthusiasts, providing an extra layer of excitement and engagement to the games they love.  However, for many years, the practice was illegal or heavily restricted in the United States.  Times have changed and public sentiment has shifted.  This year, the landscape of sports betting underwent a remarkable transformation.

The Road to Legalization

The legal status of sports betting in the United States can be traced back to the Professional and Amateur Sports Protection Act (PASPA) of 1992. PASPA effectively outlawed sports betting nationwide, with a few exceptions.  Only four states, Nevada, Delaware, Oregon, and Montana, were granted grandfathered exemptions, allowing them to continue offering some form of sports wagering.  The remaining 46 states were prohibited from legalizing or regulating sports betting.

The Shifting Paradigm

The rise of online gambling and the prominence of daily fantasy sports contests sparked discussions about the regulation and taxation of the burgeoning sport betting industry.  Particularly, the exponential growth of offshore betting platforms and the underground sports betting market highlighted the need for a legal and regulated framework.

Legal Challenges and Breakthroughs

The push for sports betting legalization initially gained significant momentum in 2011 when New Jersey residents voted in favor of a state constitutional amendment that allowed sports wagering in Atlantic City casinos.  The efforts in New Jersey were met with fierce opposition from professional sports leagues and the National Collegiate Athletic Association (NCAA), who argued that legalized sports betting could compromise the integrity of the games.

Despite continued concerns from professional sport leagues and associations, in 2018, a pivotal moment occurred when the Supreme Court of the United States struck down PASPA, ruling it unconstitutional. This landmark decision, known as Murphy v. NCAA, opened the floodgates for states to legalize sports betting within their borders.  In this landmark case, the Court held the federal government had overstepped its authority by usurping the 10^th Amendment and preventing individual states from deciding their own sports betting laws. 

The Post-PASPA Era

Since the Supreme Court ruling, several states have moved swiftly to pass legislation legalizing and regulating sports betting.  The process has been gradual but is expected to quickly increase as each state explores its autonomy to determine its own rules and regulations around sports betting.

The introduction of mobile sports betting apps has revolutionized the industry, allowing bettors to place wagers conveniently from their smartphones or tablets. This technological advancement has further accelerated the growth and popularity of sports betting across the nation and is providing an additional push to states to determine their regulations around the industry.

The legalization of sports betting in the United States has transformed the landscape of sports entertainment and the gaming industry as a whole. From the restrictive era of PASPA to the post-PASPA era, the road to legalizing sports betting has been an intriguing journey. As more states continue to embrace this change, it is crucial to strike a balance between economic opportunities, responsible gambling practices, and safeguarding the integrity of the games we love.