On Thursday last week, Governor of New Jersey Chris Christie signed a fantasy sports bill, which put all daily fantasy sports (DFS) operators under a regulated environment, imposing 10.5% tax on them. This gave rise to another opportunity for the state to boost its economy and that is to regulate eSports betting as it is one of the fastest growing sectors in all branches of the gaming trade.
Recent Legal Changes in New Jersey’s Gaming Framework
New Jersey became the latest state to regulate daily fantasy sports last week. Under the recently introduced law, all operators, who would like to offer daily fantasy sports are obliged to pay a tax of 10.5%. Specialists projected that the state can reap around $6.6 million per year, which is to be used to bridge some gaps in the budget. Christie’s decision to regulate DFS was triggered by the fact that despite the restrictions, many players still continued to place bets on DFS. The shady practices led to a significant leakage of money, as the operators pocketed all the cash, without paying taxes.
eSports Betting Potential Emerges on the Surface
The new law is a significant step forward in the legalization of online gaming in the state. It will put an end to the illegal practices and generate a stable income for the state’s coffers. Speaking of DFS, experts also projected a good perspective in regulating eSports as part of the growing online gaming industry. In fact, it is worth to note that the state’s casino industry keeps its fingers already on the pulse of the eSports as in March this year, Caesars Atlantic City organized an eSports tournament. The gaming event drew the attention of 900 players and viewers altogether, which is evident for the popularity of this type of gaming in the state.
In fact, the casino representatives reported that most of the event’s attendees spent more money on rooms, meals, and others than on gambling activities. This is a certain sign that the players are more interested in placing bets on eSports than on casino games. Unfortunately, betting on eSports is currently regulated only in Nevada.
To stay on top of the players’ growing demands, more and more states are now considering to regulate the online gaming sector. Earlier this year, Massachusetts realized that eSports are worth the attention after Massachusetts commission reported that for the last year, players wagered $5.5 billion on video-game teams and players. Unlike DFS in which the players assemble virtual teams based on real players, eSports are multiplayer video game competitions.
To benefit from the growth of eSports, legislators are highly recommended to consider the idea of regulating the sector. This opens a great perspective in front of New Jersey to further improve its economy and establish Atlantic City as a tourist destination. Such a step, though, needs to be accompanied by an adequate regulatory framework and an appropriate tax system. But once the job is done, it seems that New Jersey can reap great benefits from online gaming and eSports.