eSports betting operators must improve player protection, says Gambling Commission
Regulator also warns of skins betting clampdown in new discussion paper
The Gambling Commission has today launched a discussion paper setting out its latest thinking on eSports and virtual currencies as it seeks industry feedback on the emerging issues.
In the paper, the Commission highlights the growing size of the eSports betting market and calls on operators to beef up protections on match fixing and problem gambling in the sector.
“We are concerned about betting on eSports,” said Neil McArthur, general counsel at the Gambling Commission.
He added: “Like any other market, we expect operators offering markets on eSports to manage the risks â including the significant risk that children and young people may try to bet on such events given the growing popularity of eSports with those who are too young to gamble.”
The paper also outlines an official Commission stance on skins betting, stating that any sites allowing people to wager in-game items or âskins’ would need an operator licence.
“Any operator who is offering unlicensed gambling must stop â or face the consequences,” McArthur added.
He said the Commission had already written to more than 100 unlicensed sites offering this kind of betting, with the majority ceasing operations immediately, and the remainder subject to payment blocking and “ongoing enforcement activity.”
Betgenius’ head of eSports Moritz Maurer said the definition of skins betting as gambling was a “critical step” towards shifting eSports betting towards the regulated betting space
“Skin betting in its current form has been very harmful to eSports and its credibility as many platforms served as facilitators for the biggest match-fixing incidents,” Maurer added.
“Furthermore, the malicious business practices of many operators have led to skin betting as a gateway for underage gambling.
“Our customers, including many tier one bookmakers, have proved that eSports betting can be conducted successfully, along with the required KYC procedures to guarantee the exclusion of minors and people at risk from the betting activity.
“The attempts at self-regulation seen recently in the eSports betting sector arguably lack the clout to properly oversee this industry, so we fully welcome the handling of eSports betting by existing and established bodies â especially of the UK Gambling Commission’s calibre.”