Parliament has again been presented with the issue of legalization of single game sports betting in Canada. Indeed, recent developments in the Canadian sports betting landscape have in some ways mirrored the regulatory push seen in the United States. This regulatory momentum is not limited to the United States. This regulatory momentum in the sports betting industry generally, and the esports betting industry specifically, may help industry stakeholders advocate for further development in other state jurisdictions and across the United States at large. In Nevada, for example, while no esport matches, tournaments, or leagues were approved for betting in 2019, 13 requests for wagers received approval between March and May of this year.

Furthermore, some states have slowly begun permitting esports gambling on a case-by-case, or event-by-event, basis. The bill is currently awaiting approval by the New Jersey Senate. Such criteria relate to, among other things, protecting minors from gambling. On July 30, 2020, the New Jersey Assembly passed a bill that would permit gambling on certain esports events in the State of New Jersey, provided that the esport event meets certain criteria. However, even though many states have begun permitting the sale of sports betting services, only a few states currently permit betting on esports events.

As of November 2020, numerous states have legalized forms of sports gambling, including single event sports betting, and many other states have introduced bills that have yet to be passed by state legislature. The Supreme Court’s decision to strike down PASPA in 2018 has allowed individual states to legalize and regulate sports gambling as they see fit. These exceptions included a broad carve-out for Nevada and allowed a handful of other states to permit limited forms of “parlay” style sports gambling. In 2018, the Supreme Court of the United States struck down the Professional and Amateur Sports Protection Act (PASPA), which prohibited state-authorized sports gambling, with some exceptions. This enthusiasm for esports betting services is occurring at a transformative time for US sports gambling in general.

The esports gaming industry is expected to continue to grow over the next few years and consequently, as seen with the sports industry and gambling, so is the demand for esports betting services.

Sports betting industry growth