Nevada is now one step closer to adding esports betting to its list of gaming offerings, after the Nevada Gaming Control Board (NGCB) voted unanimously on January 11 to approve an updated regulatory framework for the relatively new sector.
The matter will now proceed to the Nevada Gaming Commission (NGC) for a final vote on January 26. If approved, the new rules would come into effect right away.
Esports has already started to gain traction in the city, thanks to numerous events and tournaments previously held at the Luxor’s HyperX Arena. However, betting on the sport has not yet been legalized, and many believe that the passage of the updated regulations would firmly cement Nevada, and specifically Las Vegas, as the esports capital of the U.S.
The proposed changes would amend the longstanding Regulation 22, which is the state’s framework for traditional sports betting, to include esports competitions. Under the new guidelines, bookmakers would be permitted to offer wagers on such events, but they’d also be responsible for vetting the integrity of the game and reporting any irregularities to regulators.
Much like the rules surrounding traditional sports, those involved in sanctioned esports events would be prohibited from placing wagers—this includes players, staff, managers and agents, if applicable.
The biggest difference between the regulations for both sectors, however, is that the esports amendment does not include any language about age or performance-enhancing drugs. Part of the reason for this is that many esports players are under the age of 18.
The drafting of the proposed regulations was somewhat unusual, in that most of the work was done by a third-party entity called the Esports Technical Advisory Committee (ETAC).
The eight-person committee started drafting the proposal back in March of last year, and a first draft of the regulations was submitted to the NGCB back in October.
John Michela, senior deputy attorney general for the state’s Gaming Division, has worked closely with the ETAC throughout the process. According to the Las Vegas Review-Journal, he told regulators at the NGCB hearing that the regulations were drafted in such a way that it allows for future changes, should the need arise.
Board member Phil Katsaros, in his final hearing as a NGCB member, said that he felt it was important to get guidelines in place now, to ensure that Nevada stays at the forefront of the gaming industry.
“What we’re doing here is enacting what I think are responsible and sensible regulations,” Katsaros said, as reported by the Review-Journal. “Imagine what Nevada would have looked like if we never availed ourselves to sports betting years ago and only availed ourselves of it in 2018. We would have been flat-footed, a state of 40-plus million visitors a year which would have drawn a lot of focus from other participants in the space. We would have lost all those potential years of experience as well. So I like that we’re not being flat-footed here.”
