On September 21, Nevada’s Esports Technical Advisory Committee (ETAC) met with the state attorney general’s office to begin the process of drafting regulations pertaining to wagering on esports events, so that sportsbooks can begin hosting championships and tournaments starting next year.
The ETAC will now convene again October 24 to put together a formal presentation for review by the Nevada Gaming Control Board and Nevada Gaming Commission, the state’s regulatory bodies.
One of the chief concerns that the ETAC is trying to alleviate is the integrity of the competitions—currently, sportsbooks in the state must apply for and receive special approval in order to take action on esports events, which is a hassle they’d like to avoid in the future.
If approved, the new regulations would instantly make Las Vegas the leading esports betting market in the country, and the city would almost surely see an increase in tournaments and conventions.
In response to the ETAC’s requests, Senior Deputy Attorney General John Michela confirmed, “the overarching intent of the proposed changes will allow licensed books to accept wagers on esports events in the manner of traditional sporting events.”
Sportsbooks would be able to freely offer bets on esports competitions under new regulations, but they would also have to take on additional due diligence obligations related to competition integrity and security.
Michela added that books “would also be required to notify the Gaming Control Board on a quarterly basis on the esports leagues on which the books accept wagers,” and the chair of the Nevada Gaming Control Board would also have the authority to shut down wagering if issues develop during the course of a league.
ETAC member Jud Hannigan said that the proposed regulations “represent a strong path” towards a thriving esports betting market, but pointed out that a “significant portion of overall handle on esports wagering across the globe comes from individual events and not necessarily part of a common definition of a league structure,” as with other sports.
Michela said that the responsibility of vetting esports organizations and tournament organizers would largely fall on sportsbook operators. However, when asked whether books would be able to freely take action on one-off events that have passed due diligence, he asserted that “under the current language, it would require an esports league.”
Hannigan then suggested that a dual framework may need to be drafted that sets forth guidelines for both leagues and one-off events so that everything is covered under one umbrella. Michela agreed that this was probably the best course of action.
