On Tuesday, the Supreme Court heard arguments in a case that could allow states to legalize online gambling.
The case pits two states — Nevada and Ohio — against a federal law that prohibits the use of gambling chips to win at online gambling sites.
The two states are trying to stop the Federal Government from allowing online gambling to become a regulated activity, because it would require the companies that run online gambling websites to get a license from the federal government and would likely result in higher taxes and fees for those businesses.
The companies argue that they must comply with the federal laws because the federal law gives them a right to be regulated, and that states have the authority to set their own laws.
But the Supreme Judicial Court is split on whether states can regulate their own websites.
In a 6-3 decision, the justices ruled against the two states.
The ruling has wide implications for online gambling in states such as New York and Massachusetts, where the Supreme Courts have ruled against online gambling regulations.
It’s also a setback for a lawsuit filed by online poker players against New York state in 2015.
The Nevada and New York cases are separate, but both involve gambling chips.
Nevada’s case, called Ruling of Nevada Gaming Chips, is a challenge to a law passed by the state legislature in 2016.
The law prohibited casinos from opening in Nevada.
Nevada said the law was needed to ensure safety for gambling customers.
Nevada is one of only a few states that have legalized online gambling, and the other states have been slow to enact rules governing how gambling companies operate.
The gambling industry is expected to grow significantly in the years ahead.