Earlier this Month, the New Jersey Division of Gaming Enforcement (NJDGE) Gave Esports Betting the Greenlight
The New Jersey sports gaming industry continues to expand. On November 7, 2019, the New Jersey Division of Gaming Enforcement (NJDGE) announced that licensed gambling operators were authorized to accept bets on the League of Legends World Championship finals, one of the world’s most popular esports competitions.
Rise of the Esports Industry
The esports industry is booming, creating a wide range of new business opportunities. According to Newzoo, esports revenues will reach a staggering $1.1 billion in 2019, a year-on-year growth of +26.7 percent. Much of the growth is fueled by the rising viewership of esports competitions. A Goldman Sachs report predicts that by 2022, U.S. esports viewership will top that of all the major traditional athletic leagues, with the exception of the National Football League.
Betting on Esports
As esports grow in popularity, so does the demand to place wagers on it. Three years ago, $5.5 billion was wagered on esports competitions globally. By 2020, wagering is expected to skyrocket to $12.9 billion. For the gaming industry, esports offers an opportunity to reach younger generations, such as millennials, that have previously been difficult to reach. However, while esports betting is widely available online, regulators have been slow to embrace esports wagers in the United States.
In giving gambling operators the green light to take bets on the LOL championship, New Jersey became the second state in the country to allow esports wagers. In 2017, the Nevada Gaming Control Board authorized William Hill to accept wagers on a Counter-Strike: Global Offensive tournament. The Garden State’s first esports wager was placed at MGM Resorts International’s Borgata in Atlantic City, with a Philadelphia broadcaster placing $100 on Team G2.
While the law initially banned wagers on esports and competitive video games, the rules have since been relaxed. New Jersey’s sports wagering regulations currently define a “sports event” on which wagers may be placed as:
“…any sport, athletic contest, or athletic event not prohibited by the Director, including all professional electronic sports and competitive video game events that are not sponsored by high schools, do not include high school teams, and do not include any participant under the age of 18 years.”
Meanwhile, a “prohibited sports event” includes “all high school sports events, including high school electronic sports events and high school competitive video game events, and any electronic sports event in which any participant is 17 years old or younger.”
Betting on esports tournaments presents difficulties for the NJDGE and gambling operators because the players are often teens. As a result, the NJDGE’s recent authorization was limited to the specific esports event. According to the agency, it “thoroughly investigated” the League of Legends World Championship as a tournament and obtained sufficient evidence of its authenticity before approving sports betting sites to take wagers. In addition, no bets over $1,000 could be made and no in-play betting was allowed.
While it may have been for just one day, New Jersey sportsbooks welcomed the opportunity. “Borgata is proud to be at the forefront of this significant milestone as we look to engage with future generations of esports fans as well as traditional sports fans,” said Marcus Glover, the President and Chief Operating Officer for Borgata Hotel, Casino and Spa. “We are grateful to the New Jersey Division of Gaming Enforcement for their partnership in helping advance such an innovative initiative.” Given the growing popularity of esports, the NJDGE will likely consider authorizing wagers on future tournaments, provided that it can verify that they don’t run afoul of the state’s gaming regulations.
For businesses looking to enter New Jersey’s legal sports betting industry, we encourage you to work with a knowledgeable New Jersey business and gaming attorney who can help you navigate the regulatory framework. As with any other new industry, there is a wealth of opportunity, as well as many traps for the unwary.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Ashley Brinn, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
