Esports is becoming more well-known around the world which has led to gaming fans looking to place wagers on competitive gaming events. Especially as there are now several huge and thrilling events throughout the year. So let’s take a look at the regulation of esports betting by state in the United States.
The regulation of esports betting is becoming an important topic. As competitive gaming becomes more popular, many states will be looking at the financial opportunities that come with it. Each state already has different laws and regulations surrounding sports betting.
The Growth of Esports and Betting
Esports is the world of competitive gaming. It was once a niche activity, but it has very quickly evolved into something bigger. It’s growing so quickly, that the industry is expected to reach a value of over 10 billion U.S. dollars within the next ten years. This revenue is expected to come from some different areas including sponsorships, merchandise, media rights and betting. The world has well and truly evolved and now there are thousands of competitions, both professional and amateur happening each year. Some of the more popular esports games include League of Legends, Dota 2 and Counter-strike.
Esports betting is very similar to sports betting in the way that you’re wagering on the outcomes of esports events. As esports has become more popular so has wagering on it. There are now many sportsbooks that offer esports betting markets. Covers showcases some of the best online betting sites for you to choose from. However, one thing that makes esports different from traditional sports is that most events aren’t governed by centralized authorities. This can make regulating it more complex. Some states are fully embracing this while others are still uncertain.
The Legal Landscape in 2025
Regulation that surrounds esports is similar to sports. In 2018 the federal law that prohibited sports betting outside of Nevada was repealed. This meant that it was up to a state on whether they wanted to legalize sports betting and it was their responsibility to regulate it. This also gave states the power to legalize other types of betting which includes competitive sport. Each state has its own regulations and rules in place for betting. Now there are 38 states where sports betting is legal. As competitive sports became more popular, states where wagering is legal have either legalized esports betting and included it in their legal frameworks. Or are you in the process of doing it?
Some states like New Jersey, Pennsylvania and Michigan have fully included competitive gaming in their frameworks for online sports betting. Sportsbooks will have to abide by certain rules to run legally in the state. This will include being fully licensed and regulated. You will find that most of these states will also restrict wagering on esports to certain platforms or events and only focus on the more popular games.
Whereas other states haven’t yet passed legislation that explicitly covers esports betting. For them, it’s considered a gray area. There are no clear guidelines on whether it is legal or not. There are cases where it is treated as part of the broader sports betting industry. While in others it’s subject to different rules and restrictions.
Key Issues in Esports Betting Regulation
Esports is still very new. There are a lot of states still trying to work out their stance on esports betting. While esports betting will present similar challenges to traditional sports betting. They will also face newer issues too. One of the biggest issues when it comes to betting regulation is age restrictions and consumer protection. Esports generally attracts a much younger audience than the more general audience sports betting does. This means states will need to implement age verification systems to ensure that those who are underage can’t participate. It’s also really important for states to ensure that operators are adhering to responsible gambling practices. This is essential when it comes to ensuring a positive experience for everyone. Another issue is integrity and match-fixing. The gaming world can be harder to regulate, especially with some open-world games. The integrity of esports events is a huge concern for regulators. Esports is still a very new world and events are often not supported in the same way traditional sports are. This means that states will need to work closely with esports organizations to ensure they have systems in place especially when it comes to match-fixing and even gaming mods. There’s also the issue of international impact on competitive gaming. There are now several international competitive gaming competitions and tournaments. These events take place all over the world. U.S. operators will need to navigate this and find a way to offer these betting markets while still following regulations.
The regulation of esports betting by state in the United States will continue to evolve throughout the year. As competitive gaming becomes more popular, many states will be looking to capitalize. However, it’s a new world. So they will also be looking at how to navigate these differences between traditional sports and esports.
