Expanded eSports Betting May Come to New Jersey
New Jersey is considering an expansion of sports wagering to include eSports betting, allowing adults who play competitive video games to place legal bets on themselves or their teams. Lawmakers view this as an opportunity to capitalize on a growing industry and position the state at the forefront of eSports regulation. Assemblyman William F. Moen Jr., the primary sponsor of the bill, emphasized the importance of embracing emerging industries and creating a legal framework that enables wagering in a structured manner.
LISTEN TO THIS ARTICLE:The bill, which recently passed an Assembly committee with unanimous support, would authorize the New Jersey Division of Gaming Enforcement to approve bets on eSports events taking place at physical locations outside the state. It also establishes parameters for hosting eSports competitions within New Jersey. Moen noted that the measure is expected to generate revenue, but beyond that, it acknowledges the growing prominence of eSports as a sector that will continue to expand.
Related: eSports Dominate IBIA Suspicious Betting Alerts in Second Quarter of 2024New Jersey's gaming industry reported a total revenue of $6.3 billion in 2024, reflecting a 9% increase from the previous year. The state attorney general's office, which oversees gaming revenue, does not differentiate eSports earnings from overall gambling figures in its reports. As the eSports betting market develops, the economic impact is expected to be evaluated more closely.
Assemblywoman Claire Swift, a co-sponsor of the bill, stressed that eSports wagering will operate under strict regulatory oversight. She pointed to strong consumer protections and age verification measures as key components of the legislation to ensure responsible gambling. Lawmakers aim to bring eSports betting into a regulated environment that protects consumers while fostering economic growth and maintaining the integrity of competitive gaming.
Moen highlighted that some colleges and universities in New Jersey are now offering eSports-related degree programs. He noted that the skills acquired in these programs could be transferable to other industries, such as film production. The state has already made significant investments in the entertainment sector, with Netflix receiving approval for a $900 million film and television studio project spanning 292 acres at the former Fort Monmouth Army Base.
While eSports betting is already legal in New Jersey, some addiction prevention advocates have raised concerns about expanding the market further. The Council on Compulsive Gambling of New Jersey has warned that increased eSports wagering could expose young people, a particularly vulnerable group, to gambling-related harm. The council reported a 277 percent increase in calls to its gambling helpline since sports betting was legalized in the state in 2018, with many of the calls coming from young adults.
The council has expressed concern over the expansion of eSports wagering, particularly given its appeal to younger demographics. Advocates believe that any expansion of gambling should be accompanied by educational initiatives on gambling addiction and its risks. The organization has stressed that while gambling generates revenue for the state, it can also lead to social and economic consequences that must be addressed.
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Problem Gambling to be Addressed
Moen, who chairs the Assembly Tourism, Gaming, and the Arts Committee, stated that lawmakers are taking steps to address problem gambling. A separate bill, also recently approved by the committee, would require public colleges and universities in New Jersey to implement gambling addiction prevention programs. He emphasized that efforts to expand eSports betting and combat problem gambling can be pursued simultaneously.
Lawmakers are also considering additional legislation aimed at mitigating the risks associated with gambling. Some proposals under review include restricting online sports betting advertisements, launching public awareness campaigns about gambling addiction, and expanding resources for individuals struggling with compulsive gambling.
Last year, the New Jersey attorney general's office initiated a responsible gaming awareness campaign, which coincided with major sporting events such as the NCAA basketball tournaments and the Super Bowl. A Rutgers University study identified young men and certain racial and ethnic groups as being particularly vulnerable to gambling disorders, prompting targeted outreach efforts.
The New Jersey Department of Human Services announced in December that it had allocated $720,000 in state-funded contracts to support nonprofit organizations providing treatment and services for individuals with gambling addiction, particularly those with co-occurring mental health or substance use disorders. Experts in the field have expressed concerns that increased gambling access, including eSports wagering, may exacerbate addiction issues over time.
B.J. Schecter, the executive director of the Center for Sports Media at Seton Hall University, acknowledged that the proposed expansion of eSports betting could be a significant revenue driver for the state. However, he questioned whether the financial benefits outweigh the potential long-term social costs of increased gambling addiction. He noted that continuously relying on gambling revenue as a financial solution may create broader economic and societal challenges that should be considered.
The bill has been referred to the Assembly Oversight, Reform, and Federal Relations Committee, where it will undergo further review before potentially advancing to a full legislative vote. Lawmakers will continue to debate the potential benefits and risks of expanded eSports betting as they work to shape the future of gambling regulation in New Jersey.
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