Nevada, New Jersey Inching Closer to Implementing Esports Betting Regulations

Nevada esports betting regulations may not be far away, now that an advisory committee has finalized and presented a new regulation framework to state regulators, who will consider the matter before the end of the year. And in New Jersey, efforts to classify esports as online gaming move forward.

Nevada, New Jersey Inching Closer to Implementing Esports Betting Regulations

The two leading gaming states have made major strides in the field of esports regulation, making wagering on the electronic version of sports possible.

The potential for esports wagering in Nevada took another step forward on October 24, as the Nevada Esports Technical Advisory Committee (NETAC) voted to finalize its proposed regulations and submit them to the Nevada Gaming Control Board (NGCB) for further consideration.

The NGCB will now review the proposal before year’s end, and if approved, the matter will proceed to the Nevada Gaming Commission (NGC), which will give final say.

The updated regulations seek to eliminate some of the red tape that currently hinders sportsbook operators—under current regulations, they have to receive regulatory approval for every esports event for which they wish to offer and accept wagers.

If updated, books would be able to know which events were approved beforehand, allowing them to prepare for and even market them in advance. Thus, Las Vegas would have a seemingly unimpeded path to becoming the largest esports betting market in the U.S., which is still in its infancy.

The NETAC previously met on September 21, and made changes to its original framework with the help of John Michela, Nevada’s senior deputy attorney general. The biggest change involved a shift of emphasis from esports leagues to individual events, given the fact that the term “league” is difficult to define with regards to esports, as they do not operate in the same manner as traditional sports leagues like the NFL, NBA and others.

Michela told the committee at the recent meeting, “With the proposed regulation before you, the concept of esports leagues is replaced with event organizers. The overarching intent of the potential changes is still to allow licensed books to accept wagers on esports events in the manner of traditional sporting events.”

Operators would then be obligated to notify the NGCB every quarter about which event organizers are in charge of the events they wish to offer and accept wagers for. Additionally, should issues arise with specific organizers, the chairman of the NGCB would have the authority to block sportsbooks from accepting wagers for their events.

With regard to the process of sanctioning organizers and their events, NETAC member Seth Schorr stated, “I would like to put it on the record that should these regulations be approved, an action item afterward, in the first quarter of next year, would be to have further discussion with the Board and the chair around this item to make sure there’s an efficient process. And this committee can continue to provide our experience to the Board as a very important part of these regulations.”

Fellow committee member Robert Forbes seconded this point, and noted that further discussion should be had in order to figure how the committee could potentially be involved in advising the NGCB chair.

In New Jersey, lawmakers are seeking to establish the state as a major hub for esports and esports wagering. State Senator James Beah has introduced a bill that is identical to a bill introduced in the state Assembly in June by Assemblyman Ralph Caputo, that would classify esports as internet gaming.

The bills, outlined in a brief last week by Frank Bruno and Zachery Roth of White and Williams LLP, would recognize esports as an “authorized gambling game” and expand the definition of “internet gambling” to include “the placing of wagers with a casino licensee on esports.”

The bill would further authorize the New Jersey Division of Gaming Enforcement to issue additional internet gaming permits related specifically to esports to existing casino licensees. These would be in addition to the five online/mobile gaming licenses currently authorized for each licensee.

The bill also includes a provision that would allow the state’s sports wagering licensees to offer two additional individually branded online/mobile sports betting platforms exclusively for esports.

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