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When online gambling enthusiasts in New Jersey woke up on Wednesday of last week, they found a brand-new iGaming option known as virtual sports betting up and running for the first time.
PlaySugarHouse.com, an online casino operated by Chicago-based Rush Street Interactive, launched its virtual sports betting products on November 24 through its primary website and mobile app.
Designed by London-based iGaming firm Inspired Gaming, the selection of virtual sports betting games currently on offer at PlaySugarHouse.com includes Rush Horses, Rush Greyhounds, Rush Soccer, Rush Motorcycles, and Rush Cars.
When wagering on these virtual sports betting games, players assess odds on various races or matches as they would in a traditional sportsbook, before selecting a side to back. From there, a random number generator is used to dictate the results of a given race or match, while bettors sit back and watch the action unfold onscreen. At the conclusion, winning wagers are settled instantly, while losing bets are claimed by the house.
The racing-based games enable bettors to back “Win,” “Place,” and “Show” wagers, while the soccer game offers a full complement of options including simple match betting, exact score, total goals, Over / Under, first and last team to score, and the half-time result.
But according to Rush Street Interactive president Richard Schwartz – who recently spoke with the The Associated Press (AP) to announce the games’ approval by the New Jersey Division of Gaming Enforcement (NJDGE) – virtual sports betting is only designed to simulate actual races or sporting events:
“It’s computer-generated, and not based on any current active live sports event, so it’s not legally considered sports betting.”
In comments made to the AP, Robert Moncrief – who serves as deputy chief of the Technical Services Bureau at the NJDGE – classified virtual sports betting along with slot machines, owing to their use of a random number generator to dispense results.
That distinction is especially important given the current federal ban on land-based sports betting, which has been prohibited by the Professional and Amateur Sports Protection Act (PASPA) of 1992. Under the terms of PASPA, sportsbook operations and associated betting products are permitted in only four states (Nevada, Delaware, Oregon, and Montana), but New Jersey is currently pursuing several challenges to the law.
Voters there authorized a sports betting referendum in 2011, which was eventually passed by the legislature as the Sports Wagering Act. Governor Chris Christie signed the act into law, but a resulting spate of lawsuits filed by professional and collegiate sports leagues – collectively known as Christie vs. NCAA et al – has worked its way to the United States Supreme Court.
With the Court scheduled to hear oral arguments in the case on December 4, and most legal observers giving New Jersey an even money chance to secure its desired repeal or amendment of PASPA, Schwartz told the AP that virtual alternatives are an asset for casino operators preparing for a newly legalized brick and mortar sportsbook industry:
“You can acquire a database of people with an interest in sports betting.”
The NJDGE approval marked the first time that U.S. regulators signed off on virtual sports betting for online play, but Inspired Gaming products have been available in Nevada’s brick and mortar casinos since last year.
The virtual alternatives are also quite popular among European bettors, and per Schwartz, PlaySugarHouse.com is optimistic that New Jersey’s gambling community will embrace them as well:
“We expect the same results in the New Jersey market.
Virtual sports betting is used effectively to fill in time between races and in time periods where there are no real-time sporting events.”
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Queries Persist After Nationally recognized Locals Social games Relationship Seams AGA’s North american Betting Alliance
Two months after the group was formed, the American Sports Betting Coalition (ASBC) has brought the National Indian Gaming Association (NIGA) on board.
The ASBC was launched by the American Gaming Association (AGA) in June to lobby for the legalization of sports betting on the federal level – specifically through repeal of the Professional and Amateur Sports Protection Act (PAPSA) of 1992.
Charter members of the ASBC include a wide range of sports betting stakeholders, including the AGA’s Illegal Gambling Advisory Board, the Fraternal Order of Police, the National District Attorneys Association, the Major County Sheriffs Association, the U.S. Conference of Mayors, and the National Conference of State Legislatures.
In adding the NIGA – which represents 184 gaming operator tribes nationwide – the ASBC broadens its base of support.
Ernie Stevens Jr., who serves as chairman of the NIGA, issued a statement announcing the new alliance.
“We are pleased to announce that the National Indian Gaming Association will be joining the AGA’s Coalition on Sports Betting, which will enable us to coordinate with and provide feedback to the AGA with regard to tribal gaming concerns as the coalition advances its policy objectives.”
But Stevens Jr. was quick to note that the NIGA isn’t necessarily joining the ASBC out of support for sports betting regulation, but rather to remain at the center of any federal reforms that would impact their own gaming ventures:
“Of chief concern to NIGA is to ensure that tribal interests are protected, particularly avoidance of any negative impacts on existing compacts and exclusivity clauses.
As one of the key stakeholders in these discussions we want to ensure that if legalized, our members have the opportunity to offer this activity as part of their overall entertainment package and as an additional source of revenue for tribal government gaming to promote tribal economic development, tribal self-sufficiency and strong tribal government.”
For his part, AGA president and chief executive officer Geoff Freeman pointed to the NIGA as an important factor in tipping the scales towards a PAPSA repeal:
“We have a window of opportunity to get this done and the National Indian Gaming Association is critical to making it happen.
Tribal engagement will help to move the needle forward and as the industry further unites, we will be able to end the failing ban on sports betting and allow our industry to grow.”
While the newfound support of the NIGA is noteworthy, the group doesn’t represent every tribe with gaming interests.
In total, 480 gambling venues across 29 states are operated by 244 tribes – leaving 60 tribes outside of the NIGA’s purview.
Several well-known gaming operators – such as the Mohegan and Mashantucket Pequots of Connecticut, the Seminole Tribe of Florida, the Cherokee Nation of Oklahoma, and the Morongo Band of Mission Indians in California – are counted as AGA / ASBC supporters.
But the California Nations Indian Gaming Association (CNIGA), a coalition consisting of 31 tribes, has come out against any expansion of legalized gambling.
And the Washington Indian Gaming Association (WIGA), which encompasses 25 tribes, is currently studying the issue before deciding on an official stance.
Opponents of PAPSA repeal claim that legalizing sports betting – which isn’t covered by the Indian Gaming Regulatory Act (IGRA) of 1988 – would violate state gaming compacts.
These divisions prompted Legal Sports Report to ask the AGA how its ASBC intends to form a consensus among tribes, to which spokesperson Steve Doty responded with the following pledge:
“We want to work with the tribes, Ernie Stevens and NIGA to find a solution that works for everybody.”
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