Video Game Industry Unprepared for Legal Esports Betting, Says Attorney
The U.S. Supreme Court decision to allow states more control over betting will have a significant impact on the esports industry. According to esports attorney Bryce Blum, the video game industry is unprepared for the dramatic changes that will follow.
On Monday, shortly after the decision was announced, Blum tweeted about the coming changes. In his retweet of the ESPN announcement, Blum pointed out that roughly $5 billion was wagered on esports last year. He expects that figure to “skyrocket” in light of Monday's Supreme Court decision.
In a sequence of tweets, Blum went on to explain how the industry is underprepared. A lot of regulatory work is needed to prevent corruption in esports, such as match-fixing and underage gambling. There are also several issues surrounding loot boxes and skin gambling that becomes all the more complicated as markets begin to legalize sports betting.
Celebrity investor Mark Cuban, who is heavily invested in the esports betting platform Unikrn, tweeted an opinion in line with Blum. Cuban pointed out that esports betting is already legal in countries around the world. Cuban went even farther than Blum, saying he hopes the federal government will create a framework to regulate and manage the esports betting industry.
While government-level regulations are the last thing most video game publishers and leading esports organizations want, Cuban provided some clarification. He thinks federal laws would be good for esports in the hopes the industry can avoid a confusing patchwork of regulations and requirements that differ from state to state.