UKGC to minimise risks from emerging sports betting markets
The UK Gambling Commission’s (UKGC) annual report for 2015/2016 details eSports betting as an “area for continuing future focus.”
UK.- The regulatory body already allows its licensees to offer sports betting, but it expressed concern over several areas of the growing market: “The growing market in eSports and computer gaming has scope to present issues for regulation and player protection, issues which are being examined by gambling regulators in other international markets.”
The report introduction by UKGC CEO Sarah Harrison describes eSports as one of the emerging products in the industry. From its current global base of €537 million in annual revenues, Eilers & Krejcik Gaming estimate that real money eSports betting will grow to over €9 billions in the next four years.
The bullish case sees growth to €12.3 billion by 2020, excluding the value of skin gambling that was estimated to grow from €6.6 billion this year to €17.8 billion by 2020, both figures the base case.
The UKGC report’s comments about eSports are sparse, as it is clear that the UKGC is still in the process of understanding the key issues: “These issues range from the emergence of real money eSports betting markets, to trading in-game items which blur the lines between gambling and social gaming. Our focus will be to understand developments, including engaging with key stakeholders, and we will work wherever we can to ensure the risks associated with these, particularly to children and young people, are minimised.”
It can be expected that the UKGC will work with the new UK governing body for esports, the British eSports Association (BEA). The BEA will work to the Department for Culture, Media and Sport (DCMS). All are likely to help the UKGC in its process of understanding the issues surrounding eSports competitions and betting, but there is the strong possibility that these private sector bodies may provide conflicting advice.
“We will continue to focus on giving consumers confidence that markets are not rigged, or subject to fixing, and otherwise are kept free from crime.” Harrison sees this objective as being achieved through a strong partnership between the regulator and the industry. “Keeping crime out of gambling, preventing unlicensed gambling, and maintaining integrity, for example in relation to sports and sports betting, are highly dependent on strong partnerships and effective powers. We will continue to use these to the full.”
