Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Esports Betting Gets Greenlight in New Jersey

Author: Scarinci Hollenbeck, LLC

Date: November 27, 2019

Key Contacts

Back

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.

New Jersey’s Sports Wagering Regulations

After the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA), which prohibited sports gambling in most states, New Jersey moved quickly to legalize it. Governor Phil Murphy signed legal sports betting into law on June 11, 2018. The law authorizes casinos and racetracks to accept in-person wagers, as well as establish online sports betting.

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.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Does Your Homeowners Insurance Provide Adequate Coverage? post image

Does Your Homeowners Insurance Provide Adequate Coverage?

Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]

Author: Jesse M. Dimitro

Link to post with title - "Does Your Homeowners Insurance Provide Adequate Coverage?"
Understanding the Importance of a Non-Contingent Offer post image

Understanding the Importance of a Non-Contingent Offer

Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]

Author: Jesse M. Dimitro

Link to post with title - "Understanding the Importance of a Non-Contingent Offer"
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC post image

Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC

Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC"
Novation Agreement Process: Step-by-Step Guide for Businesses post image

Novation Agreement Process: Step-by-Step Guide for Businesses

Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]

Author: Dan Brecher

Link to post with title - "Novation Agreement Process: Step-by-Step Guide for Businesses"
What Is a Trade Secret? Key Elements and Legal Protections Explained post image

What Is a Trade Secret? Key Elements and Legal Protections Explained

What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]

Author: Ronald S. Bienstock

Link to post with title - "What Is a Trade Secret? Key Elements and Legal Protections Explained"
What Is Title Insurance? Safeguarding Against Title Defects post image

What Is Title Insurance? Safeguarding Against Title Defects

If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]

Author: Patrick T. Conlon

Link to post with title - "What Is Title Insurance? Safeguarding Against Title Defects"

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.

Esports Betting Gets Greenlight in New Jersey

Author: Scarinci Hollenbeck, LLC

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.

New Jersey’s Sports Wagering Regulations

After the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA), which prohibited sports gambling in most states, New Jersey moved quickly to legalize it. Governor Phil Murphy signed legal sports betting into law on June 11, 2018. The law authorizes casinos and racetracks to accept in-person wagers, as well as establish online sports betting.

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.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

Please select a category(s) below: