In the surge of the global eSports market, speculation has called for standardized regulations for betting. The necessity for coherent rules is emphasized by concerns such as unregulated betting, as well as the need for transparency and integrity within the booming industry.
Amid the rapid rise and increasing popularity of the eSports industry globally, a push back towards standardized regulations for betting is gaining traction. This development arises due to burgeoning concerns around unregulated betting, match-fixing, and the need to enforce fairness and transparency in this rapidly expanding billion-dollar industry.
The call for unified rules for eSports betting began from various authorities, industry insiders, and gamers, demanding consistent regulations and oversight. It is an essential step to maintain eSports credibility, integrity and provide a safe environment for aficionados to enjoy the competition, entertainment, and gaming experience while placing safe bets.
ESports competitions – in games such as Call of Duty, Fortnite, and League of Legends have become a global phenomenon, leading to the development of its betting market. According to H2 Gambling Capital, a leading gambling industry data provider, revenue generated from eSports bets was projected at over $343 million for this year, marking a year-on-year increase of more than 60%. By 2022, H2 Gambling Capital estimates that this number will breach the $1 billion mark.
This global surge in eSports betting has brought it into the international spotlight. Various nations, including the United States, the United Kingdom, and South Korea, are raising concerns about the absence of universal betting rules. The current regulatory patchwork consists of numerous regulations varying from country to country or even states within nations, significantly affecting the international eSports industry’s growth and credibility.
Take South Korea, for instance, the very cradle of eSports, where professional gamers are revered as national celebrities. According to the legal guidelines, South Koreans cannot bet on any game unless it’s horse racing, boat racing, or cycling. This comes amid considerable domestic and international pressure to deregulate and open up new markets for eSports and online gambling.
In contrast, the United Kingdom has a more liberal approach towards eSports betting, permitting it under tightly controlled conditions and stringent regulatory oversight from the United Kingdom Gambling Commission (UKGC). The UKGC ensures that gambling entities conduct business fairly and transparently while advocating for responsible gambling.
In the United States, the scene varies greatly. While some states like Nevada and New Jersey have been quick to jump on the eSports bandwagon with legal avenues for betting, others are still contemplating whether to classify eSports as a skill-based or chance-based game, impacting its legal status.
The problem lies not only with differing transnational policies but also with the lack of understanding and acceptance of eSports as an industry in its own right. The global eSports market is forecasted to reach $1.79 billion by 2022, according to Newzoo’s Global eSports Market Report. Hence, it is in the industry’s interest to adopt universal standards for betting, as it could lead to significant growth, provide a level-playing field for all operators, and help address issues related to match-fixing and gambling addictions.
Multiple industry stakeholders are already aligning to address this issue. The Esports Integrity Commission (ESIC) has been working to enhance integrity in professional eSports and collaborates with stakeholders to harmonize anti-corruption policies and provide uniformity.
Also, the Global Association for eSports (GAES), established in 2020, aims to create and adopt a global standard across all facets of the industry, including betting. According to GAES, standardized regulations would make operations easier for bookmakers, betting operators, and players, fostering a healthier, safer, and more transparent environment.
As the global push gains momentum, the world awaits a move towards standardized eSports betting regulations. Stakeholders, regulators, and aficionados recognize the potential benefits. The gaming world is hoping for a win-win situation where both the interests of eSports companies and players can be protected and nurtured.
On the cusp of eSports entering mainstream culture and its betting industry being valued in billions, bettors, gamers, and industry insiders are increasingly advocating for standardized regulations to circumnavigate the risks and maximize the opportunities. It’s a story that continues to unfurl with the world watching intently, as the integration of eSports into the greater fabric of the global sports betting infrastructure stands to revolutionize the way we understand, appreciate and engage with this new breed of entertainment.
Sources:
1. H2 Gambling Capital
2. Global eSports Market Report by Newzoo
3. Esports Integrity Commission (ESIC)
4. Global Association for eSports (GAES)
5. United Kingdom Gambling Commission (UKGC)
