Esports Entertainment applies to enter New Jersey betting market

Esports Entertainment Group has submitted a transactional waiver to the New Jersey Division of Gaming Enforcement (DGE), the esports and online gambling company announced on Thursday. Once approved, it would allow the company to begin betting operations in the Garden State.

"New Jersey sports betting reported the first $1 billion handle in September alone and it shows no signs of slowing down anytime soon," said Grant Johnson, CEO of Esports Entertainment Group. "The transactional waiver is one of the final steps in us being able to go live and bring the exciting world of esports betting to the state of New Jersey."

In preparation for the issuance of its New Jersey gaming license, the company opened an office in Hoboken at the beginning of September. The new office adds to those the business already maintains in the UK and Malta.

In the company's October earnings call, it was announced that Q4 revenue was up 63% from Q3 and there was a significant increase in stockholder equity to $74.8 million in fiscal year 2021. Moreover, $16.8 million in revenue was generated in FY2021.

“Based on a new record single-day performance of our iGaming division in late September, I am extremely confident in our ability to hit our guidance target,” said Johnson earlier this month. 

The company expects net revenue to increase by at least 490% to $100 million to $105 million in FY22, driven primarily by the multiple acquisitions completed in calendar 2021, including Helix eSports, ggCircuit and BetHard.

Esports Entertainment first secured a New Jersey gaming license approval back in May, which allowed the company to submit its software to the DGE testing lab and apply for a transactional waiver. The license will allow EEG to operate and service bettors in the state, including its esports-focused sportsbook VIE.bet.

“This is a major step for us in our growth strategy in the US”, said Johnson that month. “According to a study from data firm Interpret, over 50% of U.S. esports fans said they are likely to engage in esports betting so we are confident that demand will be strong.”

New Jersey became the first US state to top $1 billion in monthly sports betting handle in September, driven mostly by mobile operations, making it a very attractive market for operators. Total handle for the first nine months of the year accumulated $7.1 billion, further cementing NJ's spot at the top of the U.S. sports betting industry.

The Garden State’s iGaming operations also set a new record at $122.6 million in gross gaming revenue in September, up 39.9% from $87.6 million in 2020, surpassing a prior best of $118.7 million which was set in July.