Brooklyn Journal of Corporate, Financial & Commercial Law

First Page



On May 14, 2018, Justice Alito delivered the majority opinion for the United States Supreme Court in Murphy v. National Collegiate Athletic Association (NCAA). The Professional and Amateur Protection Act (PASPA), a twenty-six-year-old federal statute, was deemed unconstitutional; thus, this decision allows state legislatures to legalize sports betting within their borders. With many states independently legalizing sports gambling, the regulatory landscape throughout the country is becoming a patchwork of state statutes. Additionally, top tier sporting organizations heavily depend on data analytics to formulate game plan strategy, train efficiently, rehab player injuries, gauge team and player performance, etc. The popularity of sports gambling continues to grow in the United States, and the proliferation of data usage will only expand as teams and players seek a competitive advantage. However, sports teams and athletes are not the only entities seeking an edge, as hackers will attempt to steal private and proprietary data for a significant edge when placing sports bets. It is imperative that leagues, teams, sports betting operators, and legislators must not overlook the cybersecurity component when regulating the industry. This Note argues that federal regulatory oversight is the most favorable approach from a cybersecurity perspective, and states can build on this framework as they see fit. Federal agencies, such as the Federal Trade Commission (FTC), Securities Exchange Commission (SEC), and federal law enforcement agencies, are well-versed in persistent cybersecurity issues and compliance regulations. A central, federal regulatory model is advantageous to the growth and integrity of the blossoming sports gambling industry and the established sports industry.