ASSEMBLY STATE AND LOCAL GOVERNMENT
COMMITTEE
STATEMENT TO
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 4397
STATE OF NEW JERSEY
DATED: FEBRUARY 16, 2023
The Assembly State and Local Government Committee reports
favorably Assembly Committee Substitute for Assembly Bill No.
4397.
This committee substitute includes electronic sports events as
sports wagering and authorizes electronic sports wagering at certain
locations.
The bill defines “electronic sports event” to mean a competition
between or involving teams, individuals, or the operator, using a video
game or games which occur, or are hosted, at a physical location or
exclusively online. Electronic sports events and authorized wagering
on electronic sports events are not considered an “authorized game” or
“authorized gambling game” as defined in section 5 of P.L.1977, c.110
(C.5:12-5).
Under the bill, the Division of Gaming Enforcement (division) in
the Department of Law and Public Safety may authorize wagers on
electronic sports events to be accepted in a sports wagering lounge or
by an internet sports wagering operator operating in partnership with a
sports wagering licensee.
For electronic sports events which occur within the physical
facilities of a casino licensee, within a racetrack that has a sports
wagering license, or within a facility located in Atlantic City that has
been approved by the division as suitable for hosting electronic sports
events, and which events are sponsored by one or more casino
licensees, racetracks or their authorized internet sports wagering
providers or online internet gaming affiliates:
the division may authorize competitors in such events who are
otherwise eligible to make sports wagers to make wagers on
themselves or their own team with regard to an individual
electronic sports contest;
the division may authorize the casino or other authorized
facility in which the electronic sports event takes place, or the
provider or affiliate which sponsors the event, to be the
exclusive operator for the placing of wagers on the outcome of
such electronic sports event; and 2
a casino, racetrack or the sponsor of the electronic sports event
may accept wagers on such event provided a third party such as
a game publisher certifies that the electronic sports event meets
all integrity requirements of the division for being an
authorized wagering event.
For electronic sports events which occur at physical facilities
within the State but do not meet the previous criteria:
the division may authorize competitors in such events who are
otherwise eligible to make sports wagers to make wagers on
themselves or their own team with regard to an individual
electronic sports contest; and
a casino, racetrack or the sponsor of the electronic sports event
may accept wagers on such event provided that a third party,
such as a game publisher, certifies that the electronic sports
event meets all integrity requirements of the division for being
an authorized wagering event.
Under the bill, wagering in New Jersey on electronic sports events
occurring at physical facilities outside the State are permitted only
upon the approval of the division and upon such terms and limitations
as the division may impose.
The bill provides that an operator: (1) may accept wagers on
electronic sports events which occur, or are hosted, exclusively on an
online gaming system upon the approval of the division and upon such
terms and limitations as the division may impose; and (2) may offer
payouts to competitors in electronic sports events upon such terms and
limitations as the division may impose.
The bill provides that websites and mobile applications are
permitted to offer wagering on traditional sports events and electronic
sports events that are approved for wagering by the division. Websites
and mobile applications authorized by casino licensees may also offer
other types of Internet gaming. In addition, each sports wagering
licensee may offer not more than two additional individually branded
websites with accompanying mobile applications that offer wagering
solely on electronic sports events.