Game On: The rise of esports betting in the US

It is a wel l-known fact that the ESPORTS industry is booming in both the United States and the world, and the South American sports betting industry is continuing to develop at a rapid pace.

However, the problem of $ 1 million is whether the betting for competing video games and electric sports will have a big future in the US market. While there are states that welcome sports betting, some states have already taken more cautious approaches, including states that have already acknowledged sports betting, and some states have completely banned sports betting. 。

Studying the current status of export betting in the United States will help you understand what will hinder market development and what the industry will expect in the state.

In the game industry, the term "eSports" is used quite fluidly, so eSPORTS (competition electric sports or video games events) and ESPORTS Bets (that is, sports electric sports or video games events It is important to distinguish between beds in classic sporting events by performing a bed.

In addition, e-sports betting in the context provided includes everyday fantasy sports that plays the role of e-sports, skinbets (betting on the possibility of getting cosmetics items in the video game itself), and the player himself pays prizes. There is no e-sports tournament to compete.

US export betting

Following the opinions of the US Supreme Supreme Court in 2018, which demolished PASPA, each state has the authority to legalize and regulate sports betting, and e-sports betting can also be legalized.

Esportsbetting is now granted in Nevada, New Jersey, Colorado, Tennessee, Virginia, West Virginia, and Washington.

In Nevada, Sportsbetting was legal before Paspa was abolished, so Nevada was likely to be the early sports betting. In 2017, the state revised Article 464 005 of the Nevada Revision Law and recognized gambling for other events, eliminating the confusion on whether ESPORTS was the current sports betting method.

Currently, e-sports in New Jersey are included in the tolerance list for "sports events". "All professional sports and video games that do not have high schools, do not involve high school teams, and do not include members aged 18 and over."

In 2019, Colorado's gaming law was amended to allow betting on a variety of "sporting events," including "individual sports, team sports, or competitive contests in which the outcome is not determined by chance."

While esports are not mentioned by name, "prohibited sporting events" include only video games "not approved as electronic sports by the governing body of that sport," and the Colorado Gaming Control Board's official list of events and betting includes all approved esports.

GameCo recently announced a partnership with Colorado's Sky Ute Casino Resort and US Bookmaking to launch the first esports sportsbook in the United States.

The Tennessee Sports Gaming Act specifically includes esports in its definition of a "sporting event," defining esports as "multiplayer video games in which participants compete in person or by remote play, and in which victory depends on the players' superior knowledge, preparation, skill, or dexterity." This allows sportsbooks to include esports competitions in their event listings with other sports competitions.

Like Tennessee, Virginia also integrates esports competitions directly into the definition of "sporting event" along with professional sports, college sports, all other sports, auto racing, and video game competitions.

West Virginia

The West Virginia Lottery's sports betting law broadly defines "sporting event" as "any professional sports or sporting event, any college sports or sporting event, auto racing, or any other special event approved by the [West Virginia Lottery Commission]" and the commission allows bets to be made on sports competitions.

In March 2020, Washington state legalized sports betting, including esports, for federally recognized tribes in the state.

Such tribes may place bets on "sporting activities, athletics events or competitions supported by any system or method of betting," including "electronic sports or athletics events or competitions."

A data event is defined as "a live event or tournament attended or watched by a public of supporters, in which a game or match is played in real time by players or teams, and in which the players or teams are likely to win prize money based on their results in the live event or tournament."

Despite promising efforts across the country, not all states, or even all states that allow and regulate sports betting, are on board with the idea.

For example, in Indiana, "Sports Betting" eliminates "esports betting". In Indiana, it is defined as a "single player or mult i-player video game that is usually played by professional gamers."

In addition, the Iowa State Hearing Gambling Committee (IRGC) (IRGC) describes e-sports as a "legal sporting event", but these bets are prohibited in Iowa. This is based on the idea of ​​Iwa State Corporation, and in fact Esports does not meet the definition of "Authentged sporting events." Although it is a dramatic development, ESPORTS is a official "fantasy sports competition" in Iowa.

In other states, rea l-time e-sports betting is in the "gray zone" and has no permission.

Barrier to entry

Some states are reluctant to include e-sports in Sports Betting because of their fairness (such as the matchmakers of the match and the operation of the results) and the age of the members involved in this job. However, such dangers are also considered to be the largest in conventional sports betting.

However, like Sports Betting, the e-sports industry is taking these potential issues and measures to reduce risks. These organizations, such as ESPORT INTEGRITY COMMISSION (Esic), collaborate with ESPORTS stakeholders to detect, track, investigate, and report potential problems such as matchfixes, report them to sportsbooks and regulators. Protected or punished.

Video game developers and ESPORTS tournament organizers also work with integrity providers like SPORTRADAR, and providers aim to monitor ESPORTS bookmaking, monitor if there is no violation, and prevent fee s-related corruption. We are developing an integrity program.

The role of minor members in e-sports may increase risk awareness, but there is a possibility that the risk can be reduced by providing restrictions on betting Esports Betting to beds involved in a certain age. 。

Esport Betting Management Point

In addition to age restrictions and the ability to ensure the integrity of the bidder, there are also support measures that the government and regulatory authorities may consider before shifting to full export gambling.

For example, the NEGCB Gambling Council (NGCB) initially asked for permission for sportsbook merchants to apply for permission to conduct separate traffic actions before they had the opportunity to place bets. Eventually, the staff allowed sportsbooks to apply for permission to bet on ESPorts-field action if these actions are conducted by one company - for a period of up to one year.

Last year, Nevada allowed rates for the entire season of the Counter-Strike ESL Pro League, Overwatch League, Call of Duty League, Enascar iRacing Pro Series, and LugChip Championship Series. The Golden Tee World Championship, which features Golf Arcade Simulator, is also considered the first approved by the events available each year.

The NGCB also generally limited the allowed "head-to-head," "winner of each match," and "winner of the season" rates, and also prohibited real-time betting.

New Jersey applied a similar alignment to the amount in relation to the End of the World in League of Legends in 2019, where the New Jersey Department of Gambling Regulation (DGE) set a limit on the bet limit in the amount of $1. 000, but did not allow rates in real time, he did not generally limit the rates to the total winner and preferences of individual cards / rounds.

Like Nevada, New Jersey requires written notice of the first proposal of a bet on the event or betting picture category at least 72 hours before the delivery of a new action or bet. The notice must include the title of the governing body of the sport responsible for the match or betting company, as well as a description of the politicians and procedures related to the fairness of the match.

To this day, the DGE is the Enascar Iracing Pro Invitational Series, Vie. GG Legend Series (CS:GO), League of Legends World Championship, etc. These examples show that states have every chance to safely defeat perceived dangers and fears, and if the circle of permitted entertainment measures, including the number, is limited, support for licensing and/or stable regulation to ensure the connection of e-sports to the number of permitted sporting events, sportsbooks have every chance to take bets.

As states become more and more accommodating to the growing industry of e-sports betting rates in the United States, and awareness and education regarding e-sports betting will grow, especially related to the industry's efforts to ensure fairness, we are waiting for the list of states with e-sports legalization and regulation rates to actually rise.

Xi Jay Fisher is a partner at gambling group Fox Rothschild LLP, and Harry Jackson is an attorney. Both attorneys specialize in all areas of gambling law, dealing with issues such as licensing, regulation, and compliance with legal claims, and are at the forefront of the expansion of legalized and regulated gambling businesses and sports rates (including e-sports rates) in the United States.