The Supreme Court cleared the way on Monday for states to legalize sports betting, striking down a 1992 federal law that had prohibited most states from authorizing sports betting.

The court said the federal law violated constitutional principles limiting the federal government from controlling state policy.

It unconstitutionally required states to prohibit sports betting under their own laws. The court upheld the legality of a 2014 state law permitting sports betting at New Jersey casinos and horse racetracks and voided the federal Professional and Amateur Sports Protection Act. Some states see sports betting, like lotteries, as a potentially important source of tax revenue.

The Supreme Court justices struck down the entire federal law on a 6-3 vote.

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

Shares of several casino companies moved higher following the report, including MGM Resorts, Caesars Entertainment, Penn National Gaming, Boyd Gaming and Churchill Downs. Wynn Resorts stock recaptured some of its losses from earlier in trading, down 1 percent on the day.