New Jersey 2024 2024-2025 Regular Session

New Jersey Assembly Bill A2172 Comm Sub / Analysis

                       
ASSEMBLY, No. 2172   
 
STATE OF NEW JERSEY 
221st LEGISLATURE  
   
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION 
 
 
Sponsored by: 
Assemblyman  WILLIAM F. MOEN, JR. 
District 5 (Camden and Gloucester) 
Assemblyman  DONALD A. GUARDIAN 
District 2 (Atlantic) 
Assemblyman  CLINTON CALABRESE 
District 36 (Bergen and Passaic) 
 
Co-Sponsored by: 
Assemblyman Sampson and Assemblywoman Swift 
 
 
 
 
SYNOPSIS 
 Includes electronic sports event as sports wagering; authorizes electronic 
sports wagering at certain locations.  
  
CURRENT VERSION OF TEXT 
 As reported by the Assembly Tourism, Gaming and the Arts Committee 
with technical review. 
      
A2172 MOEN, GUARDIAN 
2 
 
 EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is 
not enacted and is intended to be omitted in the law. 
 
 Matter underlined thus is new matter. 
 
 
AN ACT concerning electronic sports events and wagering and 1 
amending P.L.2018, c.33. 2 
 3 
 BE IT ENACTED by the Senate and General Assembly of the State 4 
of New Jersey: 5 
 6 
 1. Section 1 of P.L.2018, c.33 (C.5:12A-10) is amended to read 7 
as follows: 8 
 1. As used in this act: 9 
 “Casino” means a licensed casino or gambling house located in 10 
Atlantic City at which casino gambling is conducted pursuant to the 11 
provisions of P.L.1977, c.110 (C.5:12-1 et seq.). 12 
 “Commission” means the Casino Contro l Commission 13 
established pursuant to section 50 of P.L.1977, c.110 (C.5:12-50). 14 
 “Collegiate sport or athletic event” means a sport or athletic 15 
event offered or sponsored by or played in connection with a public 16 
or private institution that offers educational services beyond the 17 
secondary level. 18 
 “Division” means the Division of Gaming Enforcement 19 
established pursuant to section 55 of P.L.1977, c.110 (C.5:12-55). 20 
 “Electronic sports event” means a competition between or 21 
involving teams, individuals, or the operator, using a video game or 22 
games which occur, or are hosted, at a physical location or 23 
exclusively online. Electronic sports events and authorized 24 
wagering on electronic sports events shall not be considered an 25 
“authorized game” or “authorized gambling game” as defined in 26 
section 5 of P.L.1977, c.110 (C.5:12-5). 27 
 “Former racetrack” means any former racetrack where a horse 28 
race meeting was conducted within 15 years prior to the effective 29 
date of P.L.2014, c.62 (C.5:12A-7 et seq.), excluding premises 30 
other than the land contained within the racecourse oval. 31 
 “Internet sports pool operator” means an entity that is licensed as 32 
a casino service industry enterprise pursuant to section 92 of 33 
P.L.1977, c.110 (C.5:12-92). 34 
 “Online sports pool” means a sports wagering operation in which 35 
wagers on sports events are made through computers or mobile or 36 
interactive devices and accepted at a sports wagering lounge 37 
through an online gaming system which is operating pursuant to a 38 
sports wagering license issued by the division or racing 39 
commission pursuant to P.L.2018, c.33 (C.5:12A-10 et al.). 40 
 “Operator” means a casino or a racetrack which has elected to 41 
operate a sports pool, either independently or jointly, and any entity 42 
with whom a casino or racetrack licensed to operate a sports pool 43 
contracts to operate a sports pool or online sports pool, including an 44 
Internet sports pool operator, on its behalf. 45   
A2172 MOEN, GUARDIAN 
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 “Professional sport or athletic event” means an event at which 1 
two or more persons participate in sports or athletic events and 2 
receive compensation in excess of actual expenses for their 3 
participation in such event. 4 
 “Prohibited sports event” means any collegiate sport or athletic 5 
event that takes place in New Jersey or a sport or athletic event in 6 
which any New Jersey college team participates regardless of where 7 
the event takes place.  A “prohibited sports event” does not include 8 
the other games of a collegiate sport or athletic tournament in which 9 
a New Jersey college team participates, nor does it include any 10 
games of a collegiate tournament that occurs outside New Jersey 11 
even though some of the individual games or events are held in 12 
New Jersey.  A “prohibited sports event” includes all high school 13 
sports events. A “prohibited sports event” includes electronic 14 
sports and competitive video games that are sponsored by or 15 
affiliated with a high school or electronic sports and competitive 16 
video games and tournaments in which a majority of the 17 
competitors are under 18 years of age.  A “prohibited sports event” 18 
does not include sports, electronic sports, or competitive video 19 
game events in which persons under age 18 make up a minority of 20 
the participants. 21 
 “Racetrack” means the physical facility and the land, as of the 22 
effective date of P.L.2018, c.33 (C.5:12A-10 et al.), where a permit 23 
holder conducts a horse race meeting with wagering under a license 24 
issued by the racing commission pursuant to P.L.1940, c.17 (C.5:5-25 
22 et seq.), and includes any former racetrack. 26 
 “Racing Commission” means the New Jersey Racing 27 
Commission established by section 1 of P.L.1940, c.17 (C.5:5-22). 28 
 “Sports event” means any professional sport or athletic event, 29 
any Olympic or international sports competition event and any 30 
collegiate sport or athletic event, or any portion thereof, including, 31 
but not limited to, the individual performance statistics of athletes 32 
in a sports event or combination of sports events, except “sports 33 
event” shall not include a prohibited sports event or a fantasy sports 34 
activity, as defined in section 2 of P.L.2017, c.231 (C.5:20-2).  A 35 
“sports event” shall include any live competition or talent contest, 36 
including awards competitions and competitive eating contests. 37 
 “Sports pool” means the business of accepting wagers on any 38 
sports event by any system or method of wagering, including but 39 
not limited to single-game bets, teaser bets, parlays, over-under, 40 
moneyline, pools, exchange wagering, in-game wagering, in-play 41 
bets, proposition bets, and straight bets. 42 
 “Sports wagering lounge” means an area wherein a licensed 43 
sports pool is operated located in a casino hotel or racetrack. 44 
(cf: P.L.2021, c.286, s.2) 45 
 46 
 2. Section 2 of P.L.2018, c.33 (C.5:12A-11) is amended to read as 47 
follows: 48   
A2172 MOEN, GUARDIAN 
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 2. a. The division shall issue all sports wagering licenses and 1 
renewals thereof to casinos. The racing commission shall issue all 2 
initial sports wagering licenses to racetracks but the division shall have 3 
responsibility for the renewal thereof. In addition to casino games 4 
permitted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et 5 
seq.), a casino which holds a sports wagering license issued by the 6 
division may operate a sports pool in accordance with the provisions 7 
of this act and applicable regulations promulgated pursuant to this act.  8 
A racetrack which holds an initial sports wagering license issued by 9 
the racing commission or a sports wagering license that has been 10 
renewed by the division may operate a sports pool in accordance with 11 
the provisions of this act and applicable regulations promulgated 12 
pursuant to this act. 13 
 The division may issue a transactional waiver to allow the 14 
continued operation of an established sports wagering lounge and 15 
authorization to conduct up to three online sports wagering operations 16 
when a racetrack that holds a license issued by the racing commission 17 
pursuant to P.L.1940, c.17 (C.5:5-22, et seq.) undergoes a material 18 
change in ownership to a degree such that it would be required to file a 19 
new application with the racing commission in order to continue to 20 
operate pursuant to P.L.1940, c.17 (C.5:5-22 et seq.).  A transactional 21 
waiver issued pursuant to this section shall be for an initial period of 22 
up to six months and may be renewed during the pendency of the 23 
racing commission's consideration of a new application for up to three 24 
one-year periods, but the division shall have the right to reexamine and 25 
rescind the grant of the waiver at any time. 26 
 A racetrack at which a permit holder has scheduled a standardbred 27 
horse race meeting within one year preceding the effective date of 28 
P.L.2018, c.33 (C.5:12A-10 et al.) and that met the definition of a 29 
racetrack under P.L.2018, c.33 (C.5:12A-10 et al.) on the effective 30 
date thereof: 31 
 shall not be permitted to hold a sports wagering license as a former 32 
racetrack on or after the effective date of P.L.2021, c.350, and 33 
 shall, as a condition of holding a sports wagering license after the 34 
effective date of P.L.2021, c.350, schedule annually no fewer than 151 35 
standardbred race dates, except that the annual number of scheduled 36 
standardbred race dates may be decreased to no fewer than 75 37 
standardbred race dates upon written consent from the Standardbred 38 
Breeders' and Owners' Association of New Jersey. 39 
 A casino which holds a sports wagering license and a racetrack 40 
which holds a sports wagering license may enter into an agreement to 41 
jointly operate a sports pool at the racetrack, in accordance with the 42 
provisions of this act and applicable regulations promulgated pursuant 43 
to this act.  A casino or racetrack that holds a sports wagering license 44 
may conduct an online sports pool or may authorize an internet sports 45 
pool operator licensed as a casino service industry enterprise pursuant 46 
to section 92 of P.L.1977, c.110 (C.5:12-92), or an applicant for such 47 
license, to operate an online sports pool on its behalf provided the 48   
A2172 MOEN, GUARDIAN 
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terms of the agreement are approved by the division and, in the case of 1 
a racetrack, the racing commission has been provided with notice of 2 
any such division approval; provided, however, that each sports 3 
wagering licensee may provide no more than three individually 4 
branded websites, each of which may have an accompanying mobile 5 
application bearing the same brand as the website for an online sports 6 
pool [, those].  Those websites and mobile applications [, in the case 7 
of a casino being in addition to or, in the discretion of the casino, in 8 
conjunction with, any websites] shall be permitted to offer wagering 9 
on traditional sports events and electronic sports events that are 10 
approved for wagering by the division. Websites and mobile 11 
applications [that] authorized by casino licensees may also offer other 12 
types of Internet gaming pursuant to P.L.2013, c.27 (C.5:12-95.17 et 13 
seq.).  In addition, each sports wagering licensee may offer not more 14 
than two additional individually branded websites with accompanying 15 
mobile applications that offer wagering solely on electronic sports 16 
events. No online sports pool shall be opened to the public, and no 17 
sports wagering, except for test purposes, may be conducted therein, 18 
until an Internet sports pool operator receives [approval] from the 19 
division a permit to conduct an online sports pool [on behalf of a 20 
casino or racetrack that holds a sports wagering license]. Sports 21 
wagering licensees and operators may provide promotional credits, 22 
incentives, bonuses, complimentaries, or similar benefits designed to 23 
induce sports betters to wager.  The division, in consultation with the 24 
commission, shall establish by rule standards governing the provision 25 
of these measures.  The server or other equipment used by a racetrack 26 
to accept wagers at a sports pool or online sports pool shall be located 27 
in that racetrack or in any location in Atlantic City which conforms to 28 
the requirements of section 20 of P.L.2013, c.27 (C.5:12-95.22) and 29 
any additional requirements which the division may impose by 30 
regulation.  The server or other equipment used by a casino to accept 31 
wagers at a sports pool or online sports pool shall conform to the 32 
requirements of section 20 of P.L.2013, c.27 (C.5:12-95.22) and any 33 
additional requirements which the division may impose by regulation. 34 
 With regard to this act, P.L.2018, c.33 (C.5:12A-10 et al.), the 35 
duties specified in section 63 of P.L.1977, c.110 (C.5:12-63) of the 36 
Casino Control Commission shall apply to the extent not inconsistent 37 
with the provisions of this act.  In addition to the duties specified in 38 
section 76 of P.L.1977, c.110 (C.5:12-76), the division or racing 39 
commission, as required pursuant to this act, shall hear and decide 40 
promptly and in reasonable order all applications for a license to 41 
operate a sports pool.  In addition to the duties specified in section 76 42 
of P.L.1977, c.110 (C.5:12-76), the division shall have the general 43 
responsibility for the implementation of this act, except with respect to 44 
the authority to issue sports wagering licenses to a racetrack as 45 
provided by this act, and shall have all other duties specified in that 46 
section with regard to the operation of a sports pool. 47   
A2172 MOEN, GUARDIAN 
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 The license to operate a sports pool shall be in addition to any 1 
other license required to be issued pursuant to P.L.1977, c.110 2 
(C.5:12-1 et seq.) to operate a casino or pursuant to P.L.1940, c.17 3 
(C.5:5-22 et seq.) to conduct horse racing.  The division and the racing 4 
commission shall each have the authority to charge a casino or a 5 
racetrack a fee for the issuance or, in the case of the division renewal, 6 
of a sports wagering license in an amount of $100,000 for initial 7 
issuance and in the case of a renewal a reasonable fee that is based 8 
upon the expense associated with renewal, enforcement, and gambling 9 
addiction programs.  No sports wagering license shall be issued by the 10 
division or racing commission to any entity unless it has established its 11 
financial stability, integrity and responsibility and its good character, 12 
honesty and integrity. No casino or racetrack shall be permitted to 13 
operate a sports pool or accept wagers via an online sports pool unless 14 
a sports wagering lounge is established and has commenced operation 15 
in its facility; provided, however, that an applicant for a sports 16 
wagering license may petition the agency issuing the sports wagering 17 
license pursuant to this act to commence operation of the sports pool at 18 
a temporary facility and/or an online sports pool during the pendency 19 
of construction of a sports wagering lounge in its facility. Such 20 
temporary facility may include, at the discretion of the agency issuing 21 
the sports wagering license pursuant to this act, the utilization of 22 
designated windows at the current casino cage or racetrack betting 23 
window for purposes of placing sports betting wagers and self-service 24 
wagering machines located at the racetrack or casino hotel complex.  25 
No license to operate a sports pool shall be issued to any entity which 26 
is disqualified under the criteria of section 86 of P.L.1977, c.110 27 
(C.5:12-86). 28 
 No later than five years after the date of the issuance of a license 29 
and every five years thereafter or within such lesser periods as the 30 
agency issuing the sports wagering license pursuant to this act may 31 
direct, a licensee shall submit to the said agency such documentation 32 
or information as the division or racing commission may by regulation 33 
require, to demonstrate to the satisfaction of the agency that the 34 
licensee continues to meet the requirements of the law and regulations. 35 
 The division and the racing commission following consultation 36 
with the sports wagering licensees shall annually cause a report to be 37 
prepared and distributed to the Governor on the impact of sports 38 
wagering, including Internet wagering on sports events, on problem 39 
gamblers and gambling addiction in New Jersey.  The report shall be 40 
prepared by a private organization or entity with expertise in serving 41 
the needs of persons with gambling addictions, which organization or 42 
entity shall be selected jointly by the division and the racing 43 
commission.  The report shall be prepared and distributed under the 44 
supervision of, and in coordination with, the division and the racing 45 
commission. Any costs associated with the preparation and 46 
distribution of the report shall be borne by casino and racetrack 47 
licensees who have been authorized by the division or the racing 48   
A2172 MOEN, GUARDIAN 
7 
 
 
commission to conduct Internet gaming and the division and the racing 1 
commission shall be authorized to assess a fee against such licensees 2 
for these purposes.  The division and the racing commission may also 3 
report periodically to the Governor on the effectiveness of the statutory 4 
and regulatory controls in place to ensure the integrity of gaming 5 
operations through the Internet. 6 
 b. A sports pool shall be operated in a sports wagering lounge 7 
located at a casino or racetrack. A sports wagering lounge may be 8 
located at a casino simulcasting facility.  The lounge shall conform to 9 
all requirements concerning square footage, design, equipment, 10 
security measures and related matters which the division shall by 11 
regulation prescribe. The space required for the establishment of a 12 
lounge shall not reduce the space authorized for casino gaming 13 
activities as specified in section 83 of P.L.1977, c.110 (C.5:12-83). 14 
 c. No sports pool or online sports pool shall be offered or made 15 
available for wagering to the public by any entity other than a sports 16 
wagering licensee, pursuant to P.L.2018, c.33 (C.5:12A-10 et al.), an 17 
applicant for such license, operating such pool on behalf of a licensee, 18 
or an Internet sports pool operator, on behalf of a sports wagering 19 
licensee.  Any person who offers a sports pool or an online sports pool 20 
without approval of the division or racing commission to do so is 21 
guilty of a crime of the fourth degree and notwithstanding the 22 
provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than 23 
$25,000 and in the case of a person other than a natural person, to a 24 
fine of not more than $100,000 and any other appropriate disposition 25 
authorized by subsection b. of N.J.S.2C:43-2. 26 
 d. The operator shall establish or display the odds at which 27 
wagers may be placed on sports events. 28 
 e. An operator shall accept wagers on sports events only from 29 
persons physically present in the sports wagering lounge; through self-30 
service wagering machines located in its facility as authorized by the 31 
agency issuing the sports wagering license; or through an online sports 32 
pool.  A person placing a wager on a sports event shall be at least 21 33 
years of age. 34 
 f. (1)  Any person who is: 35 
 an athlete, coach, referee, or director of a sports governing body or 36 
any of its member teams; 37 
 a sports governing body or any of its member teams; 38 
 a player or a referee personnel member, in or on any sports event 39 
overseen by that person's sports governing body based on publicly 40 
available information; 41 
 a person who holds a position of authority or influence sufficient to 42 
exert influence over the participants in a sporting contest, including 43 
but not limited to coaches, managers, handlers, athletic trainers, or 44 
horse trainers; 45 
 a person with access to certain types of exclusive information on 46 
any sports event overseen by that person's sports governing body 47 
based on publicly available information; or 48   
A2172 MOEN, GUARDIAN 
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 a person identified by any lists provided by the sports governing 1 
body to the division and the racing commission, 2 
 shall not be permitted to have any ownership interest in, control of, 3 
or otherwise be employed by an operator, a sports wagering licensee, 4 
or a facility in which a sports wagering lounge is located or place a 5 
wager on a sports event that is overseen by that person's sports 6 
governing body based on publicly available information. 7 
 Any employee of a sports governing body or its member teams 8 
who is not prohibited from wagering on a sports event shall, 9 
nevertheless, provide notice to the division prior to placing a wager on 10 
a sports event.  The direct or indirect legal or beneficial owner of 10 11 
percent or more of a sports governing body shall not place or accept 12 
any wager on a sports event in which any member team of that sports 13 
governing body participates.  The direct or indirect legal or beneficial 14 
owner of 10 percent or more of a member team of a sports governing 15 
body shall not place or accept any wager on a sports event in which 16 
that member team participates. Any person who violates this 17 
paragraph shall be guilty of a disorderly persons offense and shall be 18 
fined not less than $500 and not more than $1,000. 19 
 (2) The prohibition set forth in paragraph (1) of this subsection 20 
shall not apply to any person who is a direct or indirect owner of a 21 
specific sports governing body member team and (i) has less than 10 22 
percent direct or indirect ownership interest in a casino or racetrack or 23 
(ii) the shares of such person are registered pursuant to section 12 of 24 
the Securities Exchange Act of 1934, as amended (15 U.S.C. s.78l), 25 
and the value of the ownership of such team represents less than one 26 
percent of the person's total enterprise value. 27 
 (3) An operator shall adopt procedures to prevent persons from 28 
wagering on sports events who are prohibited from placing sports 29 
wagers.  An operator shall not accept wagers from any person whose 30 
identity is known to the operator and: 31 
 whose name appears on the exclusion list maintained by the 32 
division pursuant to section 71 of P.L.1977, c.110 (C.5:12-71); 33 
 whose name appears on any self-exclusion list maintained by the 34 
division pursuant to sections 1 and 2 of P.L.2001, c.39 (C.5:12-71.2 35 
and C.5:12-71.3, respectively); 36 
 who is the operator, director, officer, owner, or employee of the 37 
operator or any relative thereof living in the same household as the 38 
operator; 39 
 who has access to nonpublic confidential information held by the 40 
operator; or 41 
 who is an agent or proxy for any other person. 42 
 (4) An operator shall adopt procedures to obtain personally 43 
identifiable information from any individual who places any single 44 
wager in an amount of $10,000 or greater on a sports event while 45 
physically present in a racetrack facility or a casino. 46   
A2172 MOEN, GUARDIAN 
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 Sections 1 and 2 of P.L.2002, c.89 (C.5:5-65.1 and C.5:5-65.2, 1 
respectively) shall apply to the conduct of sports wagering under this 2 
act. 3 
 g. The holder of a sports wagering license may contract with an 4 
entity to conduct that operation, in accordance with the regulations of 5 
and approval by the division.  That entity shall obtain a license as a 6 
casino service industry enterprise prior to the execution of any such 7 
contract, and such license shall be issued pursuant to the provisions of 8 
P.L.1977, c.110 (C.5:12-1 et seq.) and in accordance with the 9 
regulations promulgated by the division in consultation with the 10 
commission.  That entity shall, upon approval of the division, expand 11 
on any initial license granted by the division prior to entering into any 12 
such contract.  The approval shall be in accordance with the terms and 13 
conditions set forth by the division. 14 
 h. If any provision of this act, P.L.2018, c.33 (C.5:12A-10 et al.), 15 
or its application to any person or circumstance, is held invalid, the 16 
invalidity shall not affect other provisions or applications of this act 17 
which can be given effect without the invalid provision or application, 18 
and to this end the provisions of this act are severable. 19 
 i. An operator shall promptly report to the division: 20 
 any criminal or disciplinary proceedings commenced against the 21 
operator or its employees in connection with the operations of the 22 
sports pool or online sports pool; 23 
 any abnormal betting activity or patterns that may indicate a 24 
concern about the integrity of a sports event or events; 25 
 any other conduct with the potential to corrupt a betting outcome 26 
of a sports event for purposes of financial gain, including but not 27 
limited to match fixing; and 28 
 suspicious or illegal wagering activities, including the use of funds 29 
derived from illegal activity, wagers to conceal or launder funds 30 
derived from illegal activity, use of agents to place wagers, or use of 31 
false identification. 32 
 The division is authorized to share any information under this 33 
section with any law enforcement entity, team, sports governing body, 34 
or regulatory agency the division deems appropriate. 35 
 j. An operator shall maintain records of sports wagering 36 
operations in accordance with regulations promulgated by the division. 37 
 k. A sports wagering licensee may, in addition to having a sports 38 
wagering lounge, conduct wagering on authorized sports events 39 
through one or more kiosks or self-service wagering stations located 40 
within its facility. Such self-service wagering stations located at a 41 
casino may offer any game authorized under rules established by the 42 
division. Such self-service wagering stations located at a racetrack 43 
may offer wagering only on authorized sports events and horse races. 44 
 l. All wagers on sports events authorized under this provision 45 
shall be initiated, received and otherwise made within this State unless 46 
otherwise determined by the division in accordance with applicable 47 
federal and State laws.  Consistent with the intent of the United States 48   
A2172 MOEN, GUARDIAN 
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Congress as articulated in the Unlawful Internet Gambling 1 
Enforcement Act of 2006 (31 U.S.C. s.5361 et seq.), the intermediate 2 
routing of electronic data relating to a lawful intrastate wager 3 
authorized under this provision shall not determine the location or 4 
locations in which such wager is initiated, received or otherwise made. 5 
 m. A sports wagering licensee shall not accept any wager on any 6 
sports event unless the sports event has been approved for wagering by 7 
the director.  Except as otherwise provided in this subsection, no sports 8 
event shall be approved for wagering unless the director has certified 9 
that the sports event has appropriate policies and procedures to 10 
monitor the integrity of the athletes or competitors.  In the absence of 11 
such certification, the director shall impose a wager limit of not more 12 
than $100 or a win limit of $500, whichever is greater, on the amount 13 
permitted to be wagered or won on such competitions or contests by 14 
any individual. 15 
 n. Notwithstanding any other provision of P.L.2018, c.33 (C.5: 16 
12A-10 et al.), P.L.1977, c.110 (C.5:12-1 et seq.), or P.L.2013, c. 27 17 
(C.5:12-95.17 et seq.) to the contrary, the division may authorize 18 
wagers on electronic sports events to be accepted in a sports wagering 19 
lounge or by an internet sports wagering operator operating in 20 
partnership with a sports wagering licensee. 21 
 (1)  For electronic sports events which occur within the physical 22 
facilities of a casino licensee, within a racetrack that has a sports 23 
wagering license, or within a facility located in Atlantic City that has 24 
been approved by the division as suitable for hosting electronic sports 25 
events, and which events are sponsored by one or more casino 26 
licensees, racetracks or their authorized internet sports wagering 27 
providers or online internet gaming affiliates: 28 
 (a)  the division may authorize competitors in such events who are 29 
otherwise eligible to make sports wagers to make wagers on 30 
themselves or their own team with regard to an individual electronic 31 
sports contest;    32 
 (b)  the division may authorize the casino or other authorized 33 
facility in which the electronic sports event takes place, or the provider 34 
or affiliate which sponsors the event, to be the exclusive operator for 35 
the placing of wagers on the outcome of such electronic sports event; 36 
and  37 
 (c)  a casino, racetrack or the sponsor of the electronic sports event 38 
may accept wagers on such event provided a third party such as a 39 
game publisher certifies that the electronic sports event meets all  40 
integrity requirements of the division for being an authorized wagering 41 
event.   42 
 (2) For electronic sports events which occur at physical facilities 43 
within the State but do not meet the criteria set forth in paragraph (1) 44 
of this subsection:   45 
 (a) the division may authorize competitors in such events who are 46 
otherwise eligible to make sports wagers to make wagers on 47   
A2172 MOEN, GUARDIAN 
11 
 
 
themselves or their own team with regard to an individual electronic 1 
sports contest; and  2 
 (b) a casino, racetrack or the sponsor of the electronic sports event 3 
may accept wagers on such event provided that a third party, such as a 4 
game publisher, certifies that the electronic sports event meets all 5 
integrity requirements of the division for being an authorized wagering 6 
event.   7 
 (3)  Wagering in this State on electronic sports events occurring at 8 
physical facilities outside the State shall be permitted only upon the 9 
approval of the division and upon such terms and limitations as the 10 
division may impose. 11 
 (4) An operator may accept wagers on electronic sports events 12 
which occur, or are hosted, exclusively on an online gaming system 13 
upon the approval of the division and upon such terms and limitations 14 
as the division may impose. 15 
 (5) An operator may offer payouts to competitors in electronic 16 
sports events upon such terms and limitations as the division may 17 
impose. 18 
(cf: P.L.2021, c.350, s.1) 19 
 20 
 3. This act shall take effect immediately. 21