National Collegiate Athletic Association v. Governor of New Jersey

The federal Professional and Amateur Sports Protection Act (PASPA) prohibited government entities from legally authorizing sports gambling. However, in 2012, New Jersey authorized such gambling. The National Collegiate Athletic Association (NCAA) (plaintiff) obtained an injunction preventing implementation of the 2012 act on the basis that it violated PASPA, which the court deemed to be a constitutional statute. In 2014, the New Jersey legislature enacted a law that repealed certain prohibitions on gambling at horseracing tracks. The New Jersey Thoroughbred Horsemen’s Association (NJTHA) (defendant) announced plans to begin gambling activities. The NCAA and other sports leagues (collectively, the leagues) (plaintiffs) sued state officials (defendants) and NJTHA, seeking an injunction preventing the 2014 act’s implementation and a temporary restraining order (TRO) preventing NJTHA’s activities while the suit was pending. The district court granted the TRO and ordered the leagues to post a $3.4 million bond as security in case they lost their case and the court determined that NJTHA’s activities were wrongfully enjoined. However, the district court ultimately granted summary judgment in the leagues’ favor, reasoning that precedent deemed PASPA constitutional and PASPA preempted New Jersey’s 2014 act. The court of appeals affirmed. However, the United States Supreme Court reversed, holding that PASPA’s prohibition of sports gambling was unconstitutional. NJTHA then moved in the district court to recover on the bond, arguing that because the 2014 act was not preempted by PASPA, NJTHA’s activities were wrongfully enjoined. The district court denied the motion, and NJTHA appealed.