Malta-based online gambling company Esports Entertainment Group (EEG) has established a subsidiary with the intent of obtaining gambling licenses throughout the United States.
The firm, GMBL New Jersey Inc., will be based in, and operated from the Garden State, where the company plans to expand its current esports market position. EEG will apply for its first license in New Jersey in “the near future,” and will provide updates surrounding pending applications in other jurisdictions.
On April 9th, Esports Entertainment Group took to the NASDAQ with its initial public offering, generating approximately $2,750,000 (£2,184,572.50) in warrants and common stock as of May 31st. The company states the investments will assist in providing the “resources necessary to execute its business plan.”
Grant Johnson, CEO of Esports Entertainment Group, commented on the venture in a release: “Today’s announcement marks yet another significant milestone and provides the market with even greater insight as to our growth strategy,” said Grant Johnson, CEO of Esports Entertainment Group. “The US market represents a very big opportunity for us and thanks to the continued support of our valued shareholders, we intend to aggressively pursue it in 2020 and beyond.”
Esports Entertainment Group, which owns and operates esports betting platform VIE.gg, is licensed to accept wagers in over 149 jurisdictions including Canada, Japan, and South Africa. The wagering platform currently supports fantasy, pools, fixed odds betting, and 18+ gaming on a global basis.
Despite being a driving force of sports betting legislation, New Jersey has trailed far behind in esports offerings. In November 2019, the New Jersey Division of Gaming Enforcement (DGE) endorsed the state’s first esports exemption by authorising wagers on the League of Legends World Championship finals. On the other side of the coast, Nevada has permitted its licensees to accept bets on a variety of esports including Counter-Strike: Global Offensive, Dota 2, iRacing, Overwatch, and Call of Duty.
March saw the New Jersey Assembly Tourism, Gaming and the Arts Committee advance a bill to sanction esports betting on a full-time basis. The bill, A637, was initially unveiled in January and is now headed to the Speaker for consideration.
Esports Insider says: New Jersey was forecasted to be a frontrunner in the development of esports betting in the U.S. after PASPA’s repeal, but has accomplished much less than its Western counterpart, Nevada. Bill A637 will be due for a retort any day, however, and the stars may align for Esports Entertainment Group to activate in the state in a big way.