-
Casinos for you
Nevada Panel Edges Closer to Unveiling Esports Betting Regulation
By Jeff Osienya Sep 30, 2022 LegalityLawmakers in the Silver State are working to make esports wagering legal within state lines without special permits. A special esports committee is already making substantial progress on the language of a draft esports betting regulation for Nevadans.The Esports Technical Advisory Committee (ETAC) in Nevada is collaborating with the office of the Attorney General to provide a regulatory framework that will legalize esports betting by 2023. Given the popularity of esports in the Silver State and across the country, it only makes sense that lawmakers legalize betting on the activity. There have been talks of regulation in lawmaking circles for a while, and the efforts are finally bearing fruits.
In Nevada, esports matches at Michelob Ultra Arena and Luxor’s HyperX Arena already attract millions of people who watch them online or in person. When the Madison Square Garden Entertainment opens its doors in 2023, it will be hosting esports events at The Venetian’s MSG Sphere. Moreover, because the number of visitors coming to Nevada for sporting events has increased significantly, experts believe that esports markets have the potential to grow bigger.
Brendan Bussmann, a gaming industry analyst at Las Vegas-based G Global, notes that betting on esports is already taking place outside the borders of Nevada. As such, it is high time the activity is legalized. Additionally, Bussmann indicates that one of the most vital steps for proper regulation is involving all parties in the esports industry. True to his comments, during the evolution of sports betting, proponents of the activity brought together all players. They ensured that all parties were on the same page regarding the terms of regulating the sports wagering market.
Language Citing’ Esports Leagues’ Amended by the EATC
The Esports Technical Advisory Committee in the Silver State has been working on the regulatory proposal all year. When ready, the new esports regulation will be part of the Nevada Gaming Control Board (NGCB) Regulation 22, which controls sports pools and racebooks.
Come September 21, the ETAC scrutinized the first regulatory proposal and decided to return the regulation to the state’s Attorney General’s office for amendment. The said revision occurred because the Committee was uncomfortable with wording that referred to an ‘esports league’ in the draft measure. According to a report by the Las Vegas Review-Journal, the said terminology in the draft regulation read in part:
Quote“A book may accept wagers on events conducted by an esports league … if the book: obtains complete information concerning the manner in which the events are conducted by the league, including, without limitation, event rules; obtains complete information demonstrating that the events will be effectively supervised, have effective integrity safeguards in place, have verifiable outcomes, have outcomes generated by a reliable and independent process, have outcomes unlikely to be affected by any wager placed, be conducted in compliance with any applicable laws, and be consistent with the public policy of this state.”
The argument against the ‘esports league’ language, rightly so, is that most esports competitions in Silver State are one-off tournaments that are not all organized by leagues. Essentially, the ETAC plans to introduce regulated wagering on computer game tournaments in Nevada without installing too many restrictions that would otherwise curtail the activity. Further, the regulation will require sportsbooks to exercise more due diligence by providing the state’s authorities with information on which wagers are received at every esports event.
Oddly enough, Nevada state regulations prohibit wagering on amateur tournaments apart from the Olympic Games and collegiate sports. Nonetheless, the ETAC has argued that all esports games involve professionals who are compensated through a cash prize. Should there be an issue, the NGCB chair will order esports wagering sites to stop taking bets on the esports tournament. Additionally, if a sportsbook believes a particular esports event should be open for betting, it should submit its proposal to the board.
An Expert-Vetted Approach to Regulation
As part of the process, the Committee held a meeting with esports sportsbooks on July 18 to discuss the development of the regulatory proposal and the execution of esports wagering. Esports betting operators who formed the consultation team in the meeting included the likes of GRID.gg, Bayes Esports, and Oddin.gg, among others.
After the recent amendment, Paul Hamilton, the chairperson of the ETAC, emphasized that sportsbooks must hire esports experts whose task is to ensure that betting lines attract balanced two-way action. Therefore, the esports expert should have a vast knowledge of the game, the sportsbooks, and any information that is important to the company, similar to what happens in traditional sports.
Additionally, the sportsbooks will also have to stay on high alert for any instances of cheating. Aptly, according to the ETAC head, sports wagering operators are already up to the task. He was quoted by the Las Vegas Review-Journal saying:
Quote“The level of technology that these books and these licensees have now created an environment where they more often than not are the first ones to figure out if somebody’s cheating or doing something incorrect. If we get too far into the weeds, we’re going to create a document that’s impossible to navigate.”
Nevada’s ETAC will reconvene On October 24 to review and finalize the proposed regulation, which will then be submitted to the NGCB and later the Nevada Gaming Commission for review. The regulatory proposal, once passed, will allow sportsbooks to accept bets on esports leagues without having to seek special approval from the NGCB as they currently do.
You might also like