UKGC Teams Up with ESIC as Part of eSports Regulation Efforts

eSports has become an exciting and rapidly growing sector in the gambling industry with no signs of slowing its growth down. The increased interest towards eSports betting has raised certain questions regarding the regulation of the sector, putting UK competent authorities under pressure to make sure that eSports betting do not allow unlicensed betting and malpractices.

Almost a year ago, the UK Gambling Commission (UKGC) has expressed its concerns related to eSports. The gambling watchdog released a report largely focused on eSports and further explained that game publishers need to recognise all imperatives related to this type of betting.

The Commission has become the first gambling regulator on a global scale that released a thorough report and also a discussion paper or the current status of eSports gambling. The regulator explained its concern about the nature of a large number of eSports betting websites which offer skin gambling, calling it “parasitic”, and also paid attention to stake-to-play betting as well as RNG-heavy games tournaments.

The released report and discussion paper were aimed to outline if and how eSports gambling issues are likely to be regulated under the gambling legislation of the UK. That is exactly why the paper has been considered as one of the most important developments for anyone who operates in industries of eSports and video gaming.

The problem with regulation of eSports issues originates from the fact that there is not a single type of eSports. That is why it is important for local regulatory authorities to set the most suitable requirements for the industry. Unfortunately, it is hard for them to assess every case separately, so the UK Gambling Commission has been aimed at making a unified legislation and regulatory framework as far as eSports are concerned.

As far as the sector’s integrity is concerned, the UK Gambling Commission has been explicit enough and explained that there is no evidence that eSports betting represented serious risk for it. However, the UK watchdog found it necessary for additional control to be set on this type of betting.

ESIC Partnership

At the end of May 2017, the UK Gambling Commission and Esports Integrity Coalition (ESIC) have inked a Memorandum of Understanding, under which eSports will be taken as equal to mainstream sports such as cricket and football. The partnership between the two organisation comes as part of their efforts to remain focused on detection and prevention of illegal betting practices.

As revealed by the ESIC, the Coalition is to work in close collaboration with the Sports Betting Intelligence Unit (SBIU) of the UKGC in order to make sure all potential irregularities within the local eSports betting market are identified quickly and easily.

The initiative comes after a similar agreement that has been signed earlier between the Esports Integrity Coalition and the US state of Nevada. It involves the eSports events and tournaments taking place in Las Vegas, which has been aimed at becoming not only a major casino gaming hub, but also a eSports one. The Memorandum of Understanding between the UKGC and the ESIC, on the other hand, comes as another important step for both the Coalition and the local eSports community as a whole.

The agreement is to protect everyone who is involved in the eSports gaming sector, especially considering the latter’s strong growth.

  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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