Understanding the Legality of Esports Betting Worldwide

BetMGM announced its launch in the United Kingdom earlier this month and added a sponsor deal with Premier League club Newcastle United and brand ambassador Chris Rock to enforce its arrival in Europe. BetMGM is an American sports betting brand that has crossed the ocean to offer its products in the UK.

The arrival of an American gambling brand in Europe is an interesting move as the UK is pretty much the birthplace of sports betting whereas the US has only opened up to online betting in recent years. This brings us this guide that will talk you through the legality of eSports betting worldwide as the number of betting activities on this category has rapidly exploded in recent years. eSports betting, however, is not yet legal everywhere.

eSports Betting in Numbers

The Asian continent is one of the biggest markets when it comes to eSports, with the market representing a value of $1 billion in 2021. In the United States, the market was reported to represent $12.9 million in total annual wagers in 2020 which shows the potential of the US as most states haven’t yet legalised the activity (more on this later in this guide). In 2021, the global esports gambling market generated around $1.81 billion in revenue. By 2024, esports betting revenue is predicted to reach $6.8 billion overall.

In Europe, significant esports betting markets are the United Kingdom and Germany which are also two demographical power houses with populations of respectively 67 million and 83 million. The global eSports viewing audience reached a total of 523 million people in 2022 and by 2025 this total is expected to rise to a mind-blowing 640 million eSports-viewers. Asia and North America represent the biggest eSports markets in terms of revenue, with China alone being responsible for about 20% of the global market.

Most wagers are placed by punters in the 18-25 age range, adding up to approximately 80% of all stakes placed. With this age category increasing in continents such as Asia, Africa, and South America, it looks like this betting activity will continue to grow in the next few years. Internet penetration and stable internet connection also contribute to growth.

Legality of Esports Betting Around the World

We already pointed out the UK’s leading role in the world of online betting and the same is true for betting on eSports, even in an European context. Below, we’ll go through the different continents when it comes to betting on eSports.

Europe

Most online bookmakers in the country have added eSports betting elements to their sportsbooks that include other betting activities such as betting on football, tennis, basketball, and other sports. Sports betting, including eSports, is regulated by the UK Gambling Commission (UKGC), which is known as one of the most reputable gaming regulators of the world. Interestingly, there aren’t a lot of other countries in Europe that have joined the UK when it comes to legalising betting on this particular market. Currently, players from Malta, Spain, Denmark, Germany, and Italy are allowed to bet on eSports. We have to point out though that the licence issues in Malta by the Malta Gaming Authority (MGA) is used to target players from countries in the whole world, with some nations allowing their citizens to play at bookmakers that hold a MGA-licence. This is true for customers in Poland whilst the same holds for some other countries in the Balkan.

United States

Betting on eSports has not yet been regulated in most states in the United States. New Jersey is an exemption with the New Jersey Division of Gaming Enforcement (DGE) having legalised eSports in January 2022. Players in other states are not able to bet on eSports, but it might just be that New Jersey has paved the way for a change in the US.

Canada

eSports betting is allowed to some extent in Canada where state-owned operators can offer different betting activities. This doesn’t include eSports yet, but in some provinces, citizens are not forbidden to bet on offshore websites that work with an international licence. Canada has moved towards stricter rules for foreign operators.

Asia

Like some other countries, customers in most states in India can legally bet on esports as long as they stick to overseas gambling sites that are licensed and regulated. However, no form of gambling other than in person bets on horse racing is legal anywhere inside India. In New Zealand, online betting has not been regulated, apart from some activities by two locally authorised providers, New Zealanders can legally gamble on offshore websites. For those interested in lucrative promotions like the no deposit bonus, numerous online options are available.

Africa

In the country of South Africa, online casinos are legal with the same being true for sports betting. Operators need to hold a licence to offer their betting activities with eSports not being one of the main activities. The same holds true for countries like Nigeria, Ghana, Tanzania, Kenya, and Tanzania.

Conclusion

eSports and betting on eSports are both very new concepts when it comes to gambling that has existed for centuries. This has led to the situation that bookmakers, players, and gambling authorities are still getting used to this relatively new betting activity with subtle differences of course depending on the region or country. The good thing is that countries where eSports betting is legal have shown promising results with the future promising even a lot more potential. There are different countries in Europe that have already legalised sports betting and other continents are quickly added to the list. Dedicated eSports betting is considered one of today’s most innovative gambling products.

Although many of the current websites that offer eSports betting are considered unlicensed operators, it remains unregulated and even illegal in most countries. Unregulated websites should be avoided and players who want to make their first bet are always recommended to stick to licenced websites only.