The US state of New Jersey has taken an important step in integrating the burgeoning eSports industry into its dynamic betting market. The Garden State Legislature voted to pass a bipartisan bill (A637) that would legalize eSports betting within the regulated New Jersey industry. Bill A637 was unofficially known among NJ-based esports and sports betting professionals as the eSports Betting Bill.
The eSports betting bill has generated a lot of interest and enthusiasm in the US esports industry since the bill was revealed in January 2020. The bill is a review and extension of the legislation New Jersey’s existing licensed sportsbook, including eSports as a new “sport” that can be wagered online and offline by residents of NJ.
The New Jersey Assembly passed Bill A637 unanimously last summer, with the bill reaching the Senate earlier this month. The eSports betting bill has also been approved by the Senate, granting sports betting operators permission to accept bets on all kinds of eSports markets and events. It’s a seismic move for the US sports betting scene, which has sought to follow in the footsteps of the regulated UK sports betting market that has enabled eSports betting for some time. Bet365, which is one of the recommended operators for registration promotions in the UK market, regularly broadcasts eSports events live for its customers.
From now on, sportsbooks serving the New Jersey sports betting market will be allowed to accept bets of up to $ 100, with potential maximum payouts of $ 500. While this may seem like an unnecessarily strict cap, it could be extended or even removed depending on the advice of the New Jersey Division of Gaming Enforcement (DGE).
Prior to Bill A637, sportsbooks located in New Jersey were allowed to take bets on esports, but only with state regulatory approval. The CEO first approved legal eSports betting in the fall of 2019, when Atlantic City-based Borgata Casino took the first state-licensed eSports betting after releasing a book for the World Championship final. world of League of Legends. The Garden State has gone even further to accelerate the economic potential of eSports betting in New Jersey through collaboration with the New Jersey Economic Development Authority (NJEDA). Since 2020, NJEDA has worked in tandem with New Jersey-based sports betting industry stakeholders to promote eSports activity and betting.
Where else can you legally bet on esports in the United States?
Following the repeal of PASPA, New Jersey has become one of several US states to fully legalize the esports betting markets. Unsurprisingly, Nevada – home to the “Sin City” of Las Vegas – considered eSports betting legal, as did the states of Tennessee and West Virginia. Other states such as Maine are also discussing new legislation to specifically allow eSports betting.
There are also a series of states in the United States that have already sought to legalize sports betting but do not yet have a final decision on the legality of the esports betting markets. The likes of Pennsylvania, Michigan, New York, Delaware, Arkansas, Iowa, and Montana are all prime examples of those states whose legislatures have not been required to debate the legalization of esports betting so far. In addition, some US states have only decided to legalize land-based sports betting in dedicated retail sports betting. Arkansas is one of those states that has yet to seek approval for online sports betting, leaving eSports betting in limbo.
The reality for eSports betting in the United States is that states with regulated sports betting markets do not necessarily support legalized eSports markets. Hoosier State, Indiana, is a prime example, as its regulated sports betting laws specifically prohibit its citizens from betting on eSports pre-game or in-game.
Global eSports betting market could be worth $ 207 billion by 2027
According to recent figures from global consumer investigators 2CV and market analysts ProdegeMR, the US esports betting market has seen a sharp increase in the past 12 months. Revenue doubled to $ 14 billion in 2020, as the concept of betting on competitive video games shifted from a niche subset of sports culture to a mainstream product.
In fact, the global esports betting scene is growing faster than most might imagine. New data from Valuates Reports estimates that the global eSports betting market may exceed $ 207 billion by 2027. This is due to an expansion at a compound annual growth rate (CAGR) of 13.1% between 2020 and 2027.
One of the main drivers of eSports betting around the world has been the increasing accessibility and demand for live video game content. According to TechJury, some 1.97 trillion hours were consumed in 2019. However, this almost doubled to 3.93 trillion hours a year later, as platforms such as YouTube and Facebook Gaming and Twitch approach the mainstream.
The appetite for video games is alive and well, and the recent launch of the PS5 and Xbox Series X is breathing new life into the next generation of immersive video games. With millennials and Gen Z both getting to know popular video game titles, both generations also recognize the skills and commitment it takes for professional gamers to excel at the top of their profession.
There are technological innovators in the eSports betting industry who are exploring new ways to make betting on live eSports events even easier. Esports Technologies is seeking a patent for its live betting technology, allowing esports fans to place real-time bets on live streaming platforms such as Twitch, Hulu, Amazon TV & Gaming and many more. Aaron Speech, CEO of Esports Technologies, believes that this breakthrough will allow “bettors to stay in the zone” by accessing all the betting markets they need without “ever leaving their streaming environment”.
Major eSports tournament organizers are also entering the mainstream through business partnerships with established major league sports franchises. Esports Entertainment Group (EEG), which oversees the Esports Gaming League brand, has struck a marketing deal with the New York Rangers as esports companies look to intertwine with audiences engaged in major league sports like ice hockey as well as video games.
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