The Nevada Gaming Control board last week gave William Hill the go-ahead to accept wagers from the IEM Oakland eSports event that featured the video game League of Legends. The event was held last weekend, and wagers were only accepted at the William Hill location in the Downtown Grand in Las Vegas. The Downtown Grand has been featuring an eSports lounge for the last six months and is seen as a leader in the eSports segment.
The approval marks the first time legal eSports wagers could be placed anywhere in the United States.
“This announcement is a major step toward ensuring Nevada becomes the e-sports capital of the world. By embracing this unique opportunity and incorporating innovation and technology into our gaming industry, we’re expanding the potential of one of our oldest industries,” said Governor Brian Sandoval. “Representatives from William Hill and Downtown Grand have been active partners with the Gaming Policy Committee as we examined e-sports wagering in the State of Nevada. I would like to congratulate them on this approval and commend both companies for their swift work and determination.”
Seth Schorr, chief executive officer of Fifth Street Gaming and chairman of the Downtown Grand Casino, said the approval was the result of great collaboration between the parties.
“It has been an honor and a privilege to work closely with Chairman Burnett and the Governor’s Gaming Policy Committee to gain collective support for wagering on eSports,” he said. “This has been an excellent example of a public/private partnership working together to create a new innovative way of gambling which will have a positive impact on state revenues. We are proud that the Downtown Grand will be the home to the first regulated eSports wager in America. The team at the Downtown Grand has worked hard to establish itself as a truly unique eSports destination.”
Joe Asher, the CEO of William Hill U.S., says his company is excited about the development.
“We are excited to partner with Seth Schorr and the Downtown Grand to become the first sports book in America to offer legal wagering on eSports,” said William Hill U.S. Chief Executive Officer, Joe Asher. “A lot of work has gone into bringing eSports to the Nevada betting market and we thank the governor and his Gaming Policy Committee, the Gaming Control Board and Seth for all of their efforts to keep Nevada at the forefront of the gaming industry. William Hill always tries to offer the most innovative and largest wagering menu and this reflects our commitment to innovation.”
The path to eSports was discussed at a meeting last week of the governor’s Gaming Policy Committee.
The committee, which advises the legislature, and the Nevada Gaming Control Board and Gaming Commission on gaming issues, said rules are already in place in the state that can be modified to accommodate peer-to-peer wagering on the outcomes of games like World of Warcraft and for spectators in lounges and arenas where betting would be available.
Control Board Chairman A.G. Burnett, a member of the committee, said he thinks it’s possible that new guidelines for wagering on e-sports can be ready for consideration within months.
The committee took testimony from a number of leaders in the burgeoning sector, which Nielsen Games’ 2016 Nielsen eSports Report names “one of the fastest growing segments of the entire sports industry.”
For land-based casinos, which are struggling to extend the appeal of traditional gambling games to younger audiences, eSports has the potential to be a major drawing card.
The Nielsen report says the eSports fan base has grown in the last year from 8 percent to 14 percent of all Americans 13 and older. It’s a male-dominated audience?77 percent of fans are male?and a decidedly youthful one-?61 percent are millennials?and the level of engagement is relatively high, with fans spending roughly four hours per week on e-sports-related activities and entertainment.
Daily fantasy sports, another explosive growth industry, did not fare so well in review by the committee, which advised against any legislative changes for relieving DFS from having to apply for licensing on the same footing as casinos.
DFS operators, including leaders FanDuel and DraftKings, exited Nevada last year after both the Gaming Control Board and the state attorney general decided the activity is gambling under state law and therefore operators need to apply for licensing on the same footing as casinos. The industry has been unwilling to do this because of the legal implications the “gambling” designation poses for expansion in other states, where fantasy wagering has had success in gaining access as a “game of skill”.
Only one company, USFantasy, applied for and received a Nevada license to operate a DFS-style parimutuel game. The game is currently available in more than 40 sportsbooks around the state.
“To be clear, we firmly believe fantasy sports should be regulated,” said Marc La Vorgna, a spokesman for DraftKings and FanDuel. “This year, eight states have passed a law affirming fantasy sports are legal and establishing a regulatory framework, and dozens of other states are moving in the same direction. We are hopeful Nevada soon joins that list.”
