People of legal age in New Jersey can already legally wager on certain esports events but if a bill becomes law, such opportunities could expand. The proposal would create a new category of esports-only betting licenses and establish special protocols for hosting esports events at New Jersey casinos and racetracks.
Although those changes could make New Jersey a more attractive market for esports events promoters and gambling companies focused on esports, there are questions about how robust the demand for such bets and events is in the state. Atlantic City is already a destination for the esports industry in the United States, yet the only gambling operator to have tried an esports-only business model didn’t find it viable.
Bills create new opportunities for esports
A bipartisan group of three New Jersey Assembly members have re-filed A2172, which is a copy of A4397 from 2024.
As things stand, the Division of Gaming Enforcement is able to approve esports events as sporting events for purposes of conventional sports betting. However, the bill expands upon that in two ways.
The bill allows existing casino licensees to contract with up to two companies that offer bets exclusively on esports without those contracts counting toward their caps for sports wagering partners. The legislation also creates special regulations around esports events taking place in New Jersey. For example, if one of the casinos in Atlantic City hosts an event, that licensee could apply for exclusive rights for its partners and itself to offer wagering on those contests.
A2172 has a companion in the New Jersey Senate, S2417. The Assembly bill is currently with the Assembly Oversight, Reform and Federal Relations Committee after getting reported out favorably and unanimously by the Assembly Tourism, Gaming and the Arts Committee.
S2417 is currently in the Senate State Government, Wagering, Tourism & Historic Preservation Committee. That committee has a meeting scheduled for Feb. 25 but S2417 is not on the agenda.
A statement from the New Jersey Republican Party addresses the sponsors’ hopes for the bill.
Sponsors eye elevating New Jersey’s esports profile
In the statement, New Jersey Assembly member Don Guardian said that, “New Jersey and Atlantic City are primed to make the most of this market. World-class events can bring in revenue, gamers, spectators and gamblers and make us a hub for competitive video gaming.” Increased focus on regulated betting on the events might create an incentive for event organizers to prefer Atlantic City.
While there have been significant esports events in Atlantic City in the past, they have not been regular or of an extremely high-profile nature. The Hard Rock Hotel & Casino in Atlantic City will host the East Coast Gaming Congress for 2025, however, which is a nod to the city’s potential for the industry.
The size of the potential for wagering on esports remains debatable, however. Previous attempts at offering such gaming have been underwhelming.
Demand for esports betting could be casual
Esports-focused gambling platforms are nothing novel to New Jersey. The Esports Entertainment Group created and launched Vie.GG in New Jersey in April 2022 but closed the book just eight months later due to what a company representative cited as the high cost of operating the platform. Low demand likely played a role in the decision as records show that Vie.GG accepted just $590 in bets in August 2022, for example.
A2127 could address the cost factor as it eliminates the need for gaming licensees to dedicate one of their legally allowable three sports wagering contracts to an esports-dedicated partner. At the same time, any new entrant into the market would potentially have to compete with established brands for action on any non-exclusive events.
If wagering on esports is part of a sales pitch for Atlantic City to esports industry organizers, existing scholarship on the subject does not lend well to that pitch.
Rutgers study casts doubt on demand for esports betting
Other data suggest that demand for esports-specific wagering in New Jersey could be minimal as well. A 2023 study by the Rutgers Center for Gambling Studies found that less than 11% of survey respondents in New Jersey had wagered on esports during the study period.
Those data also suggest that most of the gamblers who had bet on esports during the study period did so more out of a desire to diversify their plays rather than a robust interest in the esports events themselves. While Vie.GG did not find the market for esports wagering in New Jersey to be worth the squeeze, a fuller calendar of events and diminished costs could add new juice for similar operators in the future.
