The U.S. Supreme Court on Monday paved the way for states to legalize betting on sports, lifting a 25-year-old federal law that prohibited the action outside Nevada.

In a 7-2 decision, the court ruled that federal ban on state-sanctioned sports betting is unconsitutional, giving states the green light to allow betting on college and professional sports.

"The legalization of sports gambling requires an important policy choice, but the choice is not ours to make," said Justice Samuel Alito, writing on behalf of the court. "Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own."

This is a historic development in the sports industry, and New Jersey is expected to be the first state to take advantage of the ruling.