Will esports in the U.S. end up as a major competition for wagering as it is in Europe? The participants are making all the right moves, from legislators to universities to casinos, but the outcome is far from certain.
Investors have pumped big bucks into competitive gaming. Stockton University is turning esports into courses. But few states have taken it seriously enough to add to its list of competitions, in large measure because it is perceived as more game than sport, according to the Philadelphia Inquirer.
On the plus side, the New Jersey Senate in June put its weight behind legislation to expand the gaming law to permit wagers on any skill attraction, including esports, awards races and even competitive eating.
“Esports is quickly emerging as an economic and cultural force on par with many other traditional sports, and it is important that New Jersey accommodate the many ways fans engage with their favorite teams and events,” New Jersey Division of Gaming Enforcement Director David L. Rebuck said last year.
In Pennsylvania, State Rep. Ed Neilson introduced a bill to expand the definition of a sporting event to include video games if players are at least 18.
“Now is the time to do this, because we see other states around us doing this,” said Neilson.
The Philadelphia 76ers operate a franchise in an NBA 2K League, where teams compete in video basketball. The Philadelphia Eagles plan to partner with Esports Entertainment Group as the first tournament provider for an NFL club.
Comcast Spectacor’s Philadelphia Fusion, one of 20 professional esports teams that compete in the Overwatch League, a shooting game involving taking and defending land. Spectacor and Cordish Group proposed a 3,500-seat arena prior to Covid-19. Comcast Spectacor put the $50 million project on hold last year after the Overwatch League suspended live competition during the pandemic.
Still, Spectacor is considering the venue in the stadium area, said Sean Coit, a spokesman.
“As we emerge from the pandemic, we’re eager to resume development of an innovative, state-of-the-art facility in the heart of Philadelphia’s sports and entertainment district,” Coit said in an email. “We hope to make announcements about the ongoing project in the coming months.”
Casinos and sportsbooks do not see the hurry, said Doug Harbach, a spokesman for the Pennsylvania Gaming Control Board.
“Esports will become more important to legal U.S. sports betting in the long run,” Chris Grove, a managing director of Las Vegas gaming consultant Eilers & Krejcik. “We’re already seeing this happen in Europe, where esports is evolving into a tier-two sport for major bookmakers.”
Nearly 500 million people watch esports games, and revenues could exceed $1 billion in 2020, according to the New Jersey Economic Development Authority. Plus, games can be played remotely.
New Jersey, which has allowed limited esports betting on two previous occasions, addressed some of the issues in its legislation, which limits wagers on esports to $100 or to a potential win limit of $500.
Todd Kowalski, executive director of the Pennsylvania Esports Coalition, expects Pennsylvania lawmakers will also want mechanisms in place to protect esports competitors if betting is legalized.
“I just have to think that the state’s going to say, ‘You have to make sure that your teams are looking out for the physical development and emotional and psychological and educational development of kids,’” he said. “You can’t just pay them $30,000 a year to live in a house and play video games for 60 hours a week.”
