A federal appeals court on Tuesday dealt another defeat to New Jersey's yearslong attempt to legalize sports betting, setting aside the state's challenge to a federal betting ban.

The 3rd U.S. Circuit Court of Appeals ruling invalidated a law passed by New Jersey in 2014 that would have allowed sports betting at casinos and racetracks. The court found New Jersey's law repealing prohibitions against sports gambling violated the 1992 Professional and Amateur Sports Protection Act, which forbids state-authorized sports gambling.

"Because PASPA, by its terms, prohibits states from authorizing by law sports gambling, and because the 2014 law does exactly that, the 2014 law violates federal law," the court wrote.

Currently, only Nevada offers legal sports betting on individual games. Delaware offers multigame parlay betting in which players must pick several games correctly to win. Both were given exemptions when PASPA was passed.

New Jersey Gov. Chris Christie and supporters in the state Legislature have sought to legalize sports gambling to help prop up the struggling casino and horse racing industries. It's estimated up to hundreds of billions of dollars are bet illegally on sports every year in the U.S.

Monmouth Park, in Oceanport on New Jersey's coast, is the only venue currently set up to offer sports gambling, if it were legalized.

The dispute has a lengthy legal history. New Jersey voters approved legal sports gambling in 2011, but the four major professional sports leagues and the NCAA sued the state the following year. The leagues claimed the expansion of betting to New Jersey would damage the integrity of their games and lead to more game-fixing.

Sports betting supporters have called the leagues' stance hypocritical, saying the leagues condone and profit from sports fantasy leagues in which participants assemble rosters of players from different teams and compete against others.