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In September 2006, the US Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA) as a part of the SAFE Port Act. The act made it illegal for US banks to process transactions for online gambling sites. President George W. Bush signed the bill into law in October and a number of online gambling operators immediately pulled out of the US market.
Specifically, the case before the Supreme Court concerned the Professional and Amateur Sports Protection Act of 1992, which outlawed states from approving sports gambling. At the time, the court gave exemptions to states that already held sports lotteries and Nevada — because… well… Nevada. Other states had the opportunity to opt in, but they couldn’t get their acts together in time to approve sports betting in their legislatures.
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New Jersey is one of the few states with regulated, legal online gambling. In fact, New Jersey has always had a reputation as being the most gamble-friendly of the US states (with the notable exception of Nevada).
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