New Jersey Explores Legal Esports Wagering, Sparking Concerns Over Gambling Risks

New Jersey lawmakers are working toward allowing legal betting on competitive video games, targeting what they see as a rapidly growing market. Assemblyman William F. Moen Jr. (D-Camden), the primary sponsor of a newly proposed bill, highlighted this as a strategic move to capitalize on a developing industry.

“As we’re talking about opportunities to embrace an emerging industry, this is certainly one avenue for us to capitalize on [by] having the ability for the state to set that path forward to allow for wagering to occur,” Moen said.

The bill, which ed the Assembly committee unanimously, aims to grant the state Division of Gaming Enforcement the authority to approve wagers on esports events held outside of New Jersey. It also sets guidelines for allowing esports operators to host such events within the state.

A Path to Economic Growth

Moen is optimistic that this new avenue for gambling will prove to be a significant revenue generator. However, he also stressed that the broader importance lies in acknowledging that esports is no fleeting trend. “We do expect this to certainly be a revenue generator, but I think even bigger than that, this is a recognition that esports is here and it’s here to stay,” he explained.

While exact figures for esports revenue are not detailed in the state’s gambling reports, New Jersey’s overall gaming revenue for 2024 reached $6.3 billion, marking a 9% increase over the previous year. Esports is grouped with other gambling categories in these reports, with no specific breakdown available for this segment.

Assemblywoman Claire Swift (R-Atlantic), who co-sponsored the bill, emphasized the bill’s commitment to safeguarding consumers, ensuring strict regulatory oversight, and enforcing age verification measures to combat underage gambling. “By bringing esports betting into a regulated environment, we can protect consumers, economic growth, and maintain the integrity of competitive gaming,” Swift stated.

Tapping into the State’s Emerging Industries

Moen also noted that some colleges in New Jersey now offer degrees focused on esports, reflecting the growing academic and professional opportunities tied to the field. He drew a parallel with the state’s expanding film industry, particularly after two towns gave Netflix approval for a $900 million film and TV studio on the former site of Fort Monmouth Army Base. Moen highlighted the possibility that skills gained in esports could be transferable to other emerging industries, including film.

“It’s more than just pulling in revenue from another source. The goal here is to create a responsible structure for this to occur and also, if there’s an opportunity, to create that funding for a pipeline of training for an emerging industry,” Moen said.

Concerns Over Gambling Addiction Risks

While the potential economic benefits are clear, critics of expanding esports wagering have raised concerns about its impact on young people, a demographic heavily drawn to esports. Advocates for addiction prevention worry that the growth of this form of betting could lead to greater exposure to gambling for vulnerable youth.

The Council on Compulsive Gambling of New Jersey expressed its concerns, pointing to the rise in gambling-related calls it has received, particularly from young adults. Since the legalization of sports betting in New Jersey in 2018, the council has seen a staggering 277% increase in helpline calls. The council is particularly worried about the expansion of esports betting, given the popularity of gaming among younger audiences.

“We understand that gambling is a source of revenue, but that doesn’t come without a cost. We’re seeing more and more young people get caught up in gambling and it’s troubling,” the Council on Compulsive Gambling said in a statement.

B.J. Schecter, executive director of Seton Hall University’s Center for Sports Media, voiced similar concerns. While he acknowledged the potential for esports betting to generate substantial revenue, he warned that it could create long-term societal costs. “It’s that short-term gain for longer-term problems, which could end up costing the state a lot more than they’ll make,” Schecter said. “There’s got to be another way.”

Balancing Growth and Responsibility

In response to concerns about gambling addiction, Moen and other lawmakers are working on multiple bills aimed at addressing the issue. One of these proposals would require public colleges and universities in New Jersey to implement gambling addiction prevention programs. Another bill would launch a public awareness campaign to educate the public on the risks of gambling and make resources available to those struggling with gambling issues.

“I don’t think they’re mutually exclusive. I think we can do both of these things at the same time,” Moen remarked, referring to the balance between expanding esports wagering and addressing problem gambling in the state.

Additionally, in a bid to reduce the negative effects of gambling, lawmakers are considering measures such as prohibiting online ments for sports wagering in New Jersey.

To complement these efforts, the New Jersey Attorney General’s office launched a public awareness campaign last year targeting at-risk groups, particularly young men and individuals from Black or Hispanic communities, who studies have shown are more prone to developing gambling disorders. The state also allocated $720,000 in funding to expand access to treatment for those with gambling addictions, especially those struggling with co-occurring mental health or substance use issues.

As the debate over esports betting continues, it’s clear that while economic growth remains a priority, ensuring responsible gambling practices will be a central concern for New Jersey lawmakers.

Source:

‘’Lawmakers consider expanding esports gambling in New Jersey’’, cdcgaming.com, February 23, 2025.