New Jersey approves first virtual sports betting operator

Rush Street Interactive received the approval from regulators in New Jersey to let patrons bet online on the outcome of sports events.

Regulators in New Jersey approved PlaySugarHouse.com to be the first operator to let players bet real money online on the outcome of virtual sports events. The website and the mobile app launched last week and it’s only available in New Jersey.

Rush Street Interactive, based in Chicago, is behind PlaySugarHouse, which offers the possibility to gamble on the outcome of sports events such as soccer, basketball, horse, dog and vehicle racing.

This approval comes a couple of weeks before the US Supreme Court gathers to hear New Jersey’s oral arguments in the case that seeks to repeal the PASPA Act that prevents states from offering sports betting. Richard Schwartz, president of the company, said that games are a good way to prepare for the chance that the court legalises real-world sports betting..

“It’s computer-generated, and not based on any current active live sports event, so it’s not legally considered sports betting. You can acquire a database of people with an interest in sports betting,” he said, and added that they expect in New Jersey the same results than European markets, which account as much as 20 percent of a sportsbook’s revenue. “Virtual sports betting is used effectively to fill in time between races and in time periods where there are no real time sporting events,” he added.