Nevada regulatory proposal to permit esports wagering by 2023
Sharpr is a weekly newsletter covering the intersection of esports and betting
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Hi everyone, Cody here, and I’m back with the latest edition of Sharpr, our first after a month-long hiatus. To my long-time subscribers, thank you for your patience, and to all the new subscribers: welcome to the most-followed and respected source at the intersection of esports and gambling.
Let’s jump right in.
In this week’s edition of Sharpr…
Nevada regulatory proposal to permit esports wagering by 2023
New Jersey bill to reclassify esports as internet gaming
Twitch to address unregulated casino gambling content
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Nevada regulatory proposal to permit esports wagering by 2023
Nevada’s Esports Technical Advisory Committee is collaborating with the state Attorney General’s office to produce a regulatory framework to support esports betting by next year.
The regulatory proposal would enable sportsbooks to accept wagers on esports matches without the need for special approval from the Nevada Gaming Control Board, a requirement of the current framework.
The esports betting committee will regroup on Oct. 24 to review and finalize regulations.
Proposed regulations will then be presented to the NGCB, and eventually, the Nevada Gaming Commission, for review.
Senior Deputy Attorney General John Michela told the committee: “The overarching intent of the proposed changes will allow licensed books to accept wagers on esports events in the manner of traditional sporting events.”
Jud Hannigan, committee member and Allied Esports CEO, added that this move would “represent a strong path to the progress for our mission here.”
As outlined, sportsbooks would be required to notify Nevada regulators on all esports leagues and events it has taken wagers on quarterly. The chair of the NCGB would also have the power to bar sportsbooks from accepting wagers on esports events should an “issue develop.”
Committee Chairman and Atlanta Esports Ventures CEO Paul Hamilton discussed developing language to approve specific tournament organizers or game developers, helping iron out kinks such as additional applications and regulatory approvals. “It’s about giving operators the flexibility that they need, but giving us the comfort we’re looking for to make sure it is all done right.”
🦈 Sharpr Take: If approved, the proposed regulation would represent a milestone moment for the esports betting segment stateside. In 2020, when the pandemic stripped the world of live sporting events, Nevada regulators approved a record 12 esports events–but there hasn’t been any since.
Incorporating a whitelist of pre-approved esports events would make the segment a much more attractive endeavor for operators in Sin City, saving time, money, and resources.
New Jersey bill to reclassify esports as internet gaming
A new piece of legislation in New Jersey (Bill S2986) filed on Sept. 22 by Senator James Beach (D-Cherry Hill) would include esports under the state’s definition of internet gaming.
The law would allow Atlantic City casinos the ability to operate esports outside of the state’s online casino offerings, which currently limits brick-and-mortar casinos to five online permits.
An internet gaming classification would be in addition to its current position within the state’s legal sports betting industry, which authorizes licensed operators to accept wagers on esports.
Sportsbooks would be allowed to operate esports-only online sports pools, while casino and racetracks with a sports betting license would be eligible for up to two individually-branded esports apps for their online pools.
The esports bill arrives as Garden State lawmakers are set to extend the 2013 law which legalized online casino gambling by an additional 10-year period. New Jersey Governor Phil Murphy confirmed he would sign an online casino extension if passed by state lawmakers at a recent casino conference in Atlantic City.
"New Jersey remains the leader in the rapidly evolving gaming landscape," Governor Phil Murphy said. "We are going to do whatever we can to nurture the online industry. This is no fad."
New Jersey lawmakers will have a few months to decide whether or not to move forward with the bill. Currently, S2986 is with the Senate’s State Government, Wagering, Tourism, and Historic Preservation Committee, who will have until the end of the year to proceed.
Twitch to address unregulated casino gambling content
Twitch will bar select casino gambling content on its platform, the company revealed in a statement on Sept. 20.
On Oct. 18, Twitch will update its policy to prohibit users from streaming slots, roulette, and dice games from operators that aren't licensed in the U.S. or "other jurisdictions that provide sufficient consumer protection."
The statement named several of the most prominent (and egregious) black market operators advertising with top creators on the platform which will be immediately impacted, including Stake, Rollbit, Duelbits, and Roobet.
Sports betting, fantasy, and poker will continue to be permitted on the platform.
After countless vehement public outcries for Twitch to curb its creators’ partnerships with Curaçao-licensed cryptocurrency gambling sites, the company has finally taken a stand–and to be fair, it’s as good a reaction as we could have hoped for (forthcoming policy terms withstanding).
How this plays out long-term will remain largely unknown until Twitch releases more information regarding its new policy in mid-October. However, the general consensus is that this move will have “a material impact on the named sites and others like them,” to use the words of gambling industry executive and expert Chris Grove.
With updated terms warding off unregulated, black market sites on Twitch, this change might provide some educational opportunities for gaming consumers on legitimate and safe operators, which could have a downstream effect on the esports industry.
As we saw in May, Danish organization Astralis was swiftly forced to terminate its partnership with Roobet due to a swell of community backlash. As the market, and more importantly its consumers, continue to become more educated on the bad actors in this space, it’s possible we’ll see a reduction in sponsorships and deals with those operating in an unregulated capacity.
While we’re supportive of this move, it still won’t solve what is arguably the greatest threat from this phenomena, and that’s that underage viewers can and will still be exposed to gambling content and promotions, which, regulated or not, is still an issue worth paying mind to—that’s because Twitch’s age limit is 14-years-old or older.
🗞 In the news
Skillz appoints hotel and casino executive Seth Schoor to its board of directors.
Rivalry reports a 600% increase in revenue in 2021, and will host a virtual investor day on Oct. 12.
Oddin inks a partnership deal with Betby.
📈 By the numbers
Approxmiately 25% of Brazil’s public consume esports-related content at least twice a week, and 17.6% consume everyday.
Esports Entertainment Group shares drop 46% on latest public stock offering.
Four game titles surpassed 3M peak viewers at tournaments in 2021, three of which are mobile games.