Online gambling

Vie.GG exits New Jersey’s online gambling industry

Esports Entertainment Group shut down its New Jersey online gambling product,

The esports betting and entertainment company withdraws from New Jersey while also closing its operations in Spain and the United Kingdom.

The decision was revealed via email sent to platform users on October 25, 2022.

As the company has informed its customers, the site will remain active until November 1, 2022, to allow time for users to log in and close accounts.

New Jersey Online Gambling Company Makes Tough Decision

The email to affected customers in New Jersey, Spain and the UK reads:

“Dear Patron. We have made the difficult decision to close The site will remain open until November 1, 2022. Until then, you will be able to log in to close your account.

Any account remaining open on that date will be automatically closed and any remaining balance of $1 or more will be returned by check sent to the address on record on the applicable account.

If you have any questions, please contact our customer support team at [email protected]

Thank you for playing on our site.

All remaining balances will be returned by physical check, Trustly or VIP Preferred.

Restructuring to enhance stability

As CEO of Esports Entertainment Group, Grant Johnsontold NJGamblingSites:

“Esports has been categorized [the] same as sports. So the skin [costs] seven figures a year, which is good [sic] too much for esports in its current stage of evolving verticality.

If the market hadn’t turned so drastically, we planned to raise capital and then add a bookmaker. But by the time we were approved, it was clear the world had changed.

We are restructuring to last until more stable markets. [And] currently, New Jersey, Spain and the UK are all jurisdictions in which we do not have the capital required to remain active. So we reduce our consumption and put money back in the bank.

We live in stressful times and companies have to make difficult decisions. This falls into the difficult but necessary category.

New Jersey’s premier esports-focused betting site originally obtained its license from New Jersey in September 2021. It was the first esports-focused vertical to launch in the state, but also the first to die.

EEG’s platform fully deployed in April 2022in connection with Bally’s Atlantic City Hotel and Casino. But with the high cost of licensing, the expense was too high to maintain operations.

Bally’s August financials showed just $590 gross sports betting revenue, which was not enough to run a profitable operation. However, not all gambling operators in the United States seek to withdraw from offering sports betting. In fact, Nevada regulators are considering expanding the options for casinos to offer more esports action.

Not the only case of contraction

EEG’s announcement isn’t the only example of the company recently pulling its platform from a particular US market.

Fubo Sportsbook, licensed by Harrah’s Resort Atlantic City, has announced its closure effective immediately. The bookmaker gives players until November 17 to raise their funds. As Fubo Sportsbook says:

“Customers in New Jersey can withdraw funds through Trustly, VIP Preferred (ACH) or by requesting a physical check.”

This announcement came a month after the bookmaker launched its site in New Jersey.

Similar betting platforms also closed in Arizona and Iowawith FuboTV announcing that the company would “immediately exit the online sports betting business”.