Delaware's Sports Betting Challenge Fails

The AP reports that Delaware has lost its challenge to the legal ruling that limits them to only offering parlay bets of 3 or more NFL games. Delaware has a grandfather exemption under the 1992 PASPA law, along with Nevada, Oregon and Montana. The exemption allows the grandfathered state to offer only those kind of sports betting options previously offered. Delaware offered a NFL sports lottery back in the 1970s.

Last year, Delaware revived its sports betting offering, but wanted to expand the options to allow single-game sports betting on the NFL as well as other professional sports. The sports leagues objected and filed for an injunction to keep Delaware from expanding their offering. The US 3rd Circuit upheld the leagues' arguments and instituted the injunction on Delaware, which they appealed to the US Supreme Court. The Supreme Court declined to take the case, ending the issue. Delaware will be limited to what they have offered last year.

The State of New Jersey is fighting PASPA on constitutional grounds. Delaware did the same, but did not take the same tack as New Jersey. What Delaware wanted was their ability to expand sports betting without being bound by PASPA, but have all the other non-grandfathered states still be bound by the law - wanting their cake and eating it too. The court saw through this and didn't allow this expansion. If the state wants to operate within PASPA, they need to stay within the stated safe harbors.

New Jersey is fighting to have PASPA declared unconstitutional, which would allow any state to decide for itself what gambling is allowed within state borders. Delaware didn't challenge the entire law, just the portion they didn't like. That approach likely doomed their chances of success. Either they join New Jersey and attack the whole PASPA law, or they need to be satisfied with NFL parlays.