A federal appeals court has rejected New Jersey's attempt to legalize sports betting, setting aside the state's legal challenge to a federal ban.

The 3rd U.S. Circuit Court of Appeals' ruling published Tuesday invalidates a law passed by New Jersey in 2014 that would have allowed sports betting at casinos and racetracks.

The four major professional sports leagues and the NCAA sued the state, claiming the expansion of legal sports betting would damage the integrity of their games and lead to game-fixing.

Currently, only Nevada offers betting on individual games. Delaware offers multigame parlay betting in which players must pick several games correctly to win. Hundreds of billions of dollars are bet illegally on sports annually.

The 3rd Circuit wrote Tuesday New Jersey's law violates a 1992 federal law.