After the US Supreme Court made the decision to strike down a law that prohibits states from authorising multiple forms of sports betting. The Professional and Amateur Sports Protection Act (PASPA) has kept legal betting to occur in only a select few states.
In the decision of Murphy v National Collegiate Athletic Association it was ruled that PASPA violated the tenth amendment and was an unconstitutional infringement on states’ rights.
Even with sports betting being illegal in almost all US states, wagering on Esports globally in 2018 is estimated to be worth $6.7 billion according to a report by software Analytics Company Narus and research firm Eilers & Krejcik gaming. This number is estimated to rise to over $12 billion by 2020.
An individual that is set to benefit from this decision is Dallas Maverick owner Mark Cuban, who also is an investor in Esports betting site Unikrn. When talking to ESPN, Cuban noted that he hopes to see a “federal approach” in an attempt to standardize sports betting.
.@dallasmavs owner and @UnikrnCo investor @mcuban gives his initial thoughts on how SCOTUS’ ruling on Murphy v. NCAA will impact gambling culture and esports gambling. pic.twitter.com/ZCloykUls9
— Jacob Wolf (@JacobWolf) May 14, 2018
NBA commissioner Adam Silva in February, suggested that there should be a one percent “integrity fee” for any wager placed on a game in the NBA. This could be transferred over to Esports to ensure measures are put In place to uphold the integrity and competitive nature of the games.
The franchised leagues should also play a part in this increase in Esports betting, as one of the main focuses of the Overwatch League is to build local fan bases for teams. Those local fans in Houston, Dallas and San Francisco for example may turn to betting on their team as a way to enhance their viewing experience to some degree.
As these leagues continue to grow, the viewers will also be more familiar with players giving seasoned betters more reason to bet in certain instances.
This is potentially a dangerous move for Esports as there has been scandals of match in the past. In CS:GO Valve had to ban seven individuals from all Valve sponsored events following American team iBUYPOWER threw a match against NetcodeGuides.com.
In the long term this potential nationwide lift on sports betting in the US could open up a whole new stream of revenue for companies as well as increase viewership and audience engagement. However, the league operators need to be cautious to ensure measures are put in place, if they are not already to ensure that scandals do not re-occur due substantial increase in bets.
