If there is one industry, which not only didn’t suffer but outright benefited from the COVID-19 pandemic, that is the video games industry. The worldwide lockdowns acted, and still act in some cases, as the catalyst, which catapulted the video games industry to the top of the charts. According to the recent data, provided by the market intelligence firm IDC on MarketWatch, “global videogame revenue is expected to surge 20% to $179.7 billion in 2020”, thus exceeding the profits of the global film industry and the North American sports industry combined!
Of course, the release of Sony’s PlayStation 5 and Microsoft’s new Xbox line consoles greatly contributed to the phenomenal success of the industry, but other factors such as the accessibility of video games amid a global pandemic should not be ignored.
You might be asking yourself how video games are connected to online gambling. As previously mentioned, while the sports industry lost a significant amount of its revenues due to the cancellation of many live games, the esports industry did not, because all you need is a computer and a camera to partake. With this in mind, online casinos offering live sports betting realised that they could make up for their losses by introducing the esports betting on their websites. It should be noted that one could also bet on esports games before, but now more and more casinos offer this option.
What is Esports
For those of you who don’t know what I’m even talking about, let us first define what esports is. Esports is, according to the Cambridge Dictionary, “the activity of playing computer games against other people on the internet, often for money, and often watched by other people using the internet, sometimes at special organized events.”
This definition suggests that esports are not that different from other competitive sports – both types of players are usually paid for the sport events, which are organized and broadcast. Moreover, sports leagues such as the NFL, the NBA and the MLB have their esports counterparts – the ESL (Electronic Sports League), the eMLS (Electronic Major League Soccer) and the CS:GO Pro League, to name a few. Judging by these similarities, there is no reason why one shouldn’t be able to bet on a CS:GO game if they can bet on a basketball game.
Online casinos are well-aware of the similarities between sport and esport industries and games, which is why the online betting process is almost identical in terms of odds and wagers. This is why there are also websites catering to esports gamblers, which contain information about the games and the players, as well as betting predictions, thus mimicking websites about regular sports gambling.
The Legality of Esports Betting in the US
Just like regular online betting, esports betting in the United States has its own peculiarities. For one, there is an issue with the players taking part in esport competitions – some of them are under the age of 18, and most states are against wagering on minors’ performance. New Jersey, which is one of the most gambling-friendly states, has explicitly ruled on the matter and esports betting is legal as long as all players involved are 18 or older.
However, the situation in terms of legality is a bit more ambiguous in other states, which have not yet regulated esport betting. This puts esport betting in the gray area of online gambling. Undoubtedly, many gamblers feel uneasy about betting when they don’t know if their state even allows it. It should be noted, though, that unregulated doesn’t equate illegal. If the crime committed is not explicitly defined as crime, the chances of the gambler being prosecuted are low. Not only that but even vendors might be exempt from prosecution. Still, the courts have the last say, and they might choose to invoke existing gambling regulations and apply them to esport betting.
This legal ambiguity doesn’t dissuade all gamblers, but the market would certainly expand and flourish when more states rule on esport betting. There is definitely a financial initiative to do so considering the esport industry made $1 billion in profits in 2019, while esport betting – $8 billion.
How US Casinos Respond to the Success of Esports
Las Vegas, the world capital of gambling, was quick to take note of esports popularity. Some famous Las Vegas casinos have not only introduced esports betting in their venues, but also created, or are in the process of creation of, special arenas for esports tournaments. A good example is the Hyper X Esports Arena at the Luxor Hotel & Casino, which houses both online and offline esports tournaments, and even offers casual gamers the opportunity to play there through its gaming passes. Caesars’ Twin Galaxies Arcade and eSports Center is another lucrative example of a Las Vegas casino ushering the new age of esport gambling.
Conclusion
These two expensive projects highlight the opportunities which esports present. By introducing esport betting, casinos, whether physical or online, cater to a younger demographic, which might not be inclined to bet on regular sports games or play classic casino games such as poker. Online casinos specifically have a lot to gain from the popularity of esports amid the global pandemic, which caused the closure of many physical casinos and the cancellation of live sports games. Lastly, if the current gambling/esport gambling legalization efforts prove to be successful, they would provide a new industry ripe for the taking, which would lead to astronomical profits for smart investors. Consequently, there would be many more vendors offering esports betting and the increase of competition would ultimately prove to be beneficial for the regular gambler.