ASSEMBLY TOURISM, GAMING AND THE ARTS
COMMITTEE
STATEMENT TO
ASSEMBLY, No. 2172
STATE OF NEW JERSEY
DATED: FEBRUARY 13, 2025
The Assembly Tourism, Gaming and the Arts Committee reports
favorably Assembly Bill No. 2172.
This bill 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
• 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 2
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.
Under the bill, the division maintains its ability to oversee and
approve sports wagering agreements involving either a casino or a
racetrack. Where the agreement involves a racetrack, the New Jersey
Racing Commission will be informed of the approval of such
agreements.
This bill was pre-filed for introduction in the 2024-2025 session
pending technical review. As reported, the bill includes the changes
required by technical review, which has been performed.