ASSEMBLY TOURISM, GAMING AND THE ARTS
COMMITTEE
STATEMENT TO
ASSEMBLY, No. 4397
STATE OF NEW JERSEY
DATED: SEPTEMBER 15, 2022
The Assembly Tourism, Gaming and the Arts Committee reports
favorably Assembly Bill No. 4397.
This bill includes Esports as internet gaming for the purposes of
wagering and provides for additional internet gaming permits for
licensed casinos or internet gaming affiliates. The bill also permits
additional Esports-only permits for sports wagering.
Under current law, certain Esports events are considered a sports
event and wagers can be accepted from individuals by licensed
sports wagering operators. Esports events that are sponsored by or
affiliated with a high school or Esports in which a majority of the
competitors are under 18 years of age are not permitted to be
wagered on.
This bill includes Esports as a type of internet gaming and adds a
definition of Esports. Esports is defined as an electronic video
game, electronic sport, or competitive video game event authorized
by the division in which one or more persons participate against
each other or the casino in which the outcome is not determined
solely on chance, and in which persons under 18 years of age make
up a minority of the participants. Esports would still not include
events that are sponsored by or affiliated with a high school.
The Division of Gaming Enforcement (DGE) would classify
Esports as an authorized game or authorized gambling game and
internet gaming would include the placing of wagers with a casino
licensee on Esports. Wagering would only be permitted by
individuals who have established a wagering account with the
casino licensee and who are physically present in the State. Esports
permits issued by the DGE to casino licensees or their affiliates
would not count towards the total number of traditional internet
gaming permits. DGE regulations currently allow five internet
gaming permits per casino licensee.
This bill also provides additional Esports-only sports wagering
permits for casino licensees or racetracks, or their affiliates. A
casino licensee or racetrack would be permitted two additional
permits for Esports-only sports wagering operations. Nothing in
this bill would prohibit a traditional sports wagering operator from
offering Esports wagering, which is currently permitted. The bill
also clarifies that Esports would be considered a professional sport
or athletic event by adding it to the existing definition.