eSports is playing video games competitively with other players. It is usually viewed in a stadium or similar venue, or via specialist online streaming services. As the popularity of eSports increased along with the prizes on offer, so has an interest in betting on the outcomes of tournaments. A growing number of online sports betting providers have begun to branch out into eSports betting. There is also more interest in setting up stand-alone online eSports betting platforms. Now, jurisdictions offer eSports gambling licenses or provide for it in gambling legislation.
In general, eSports betting is treated in the same manner as conventional sports betting but there are some additional risks. These risks include the chances of cheating and a lack of regulation during eSports events. Those offering bets on eSports should ensure that they are in line with all applicable gambling and online betting laws.
If you want to offer eSports betting to your customers, you need to acquire a betting license. While most jurisdictions offer one license to cover all betting activity, some have slight differences or require additional permits, or taxes to be paid depending on what you offer. Be sure to consult your professional services provider to make sure you have the full picture.
In this article, we will take a look at the regulations in place in three key jurisdictions. While they aren’t the only ones where you can offer eSports betting, they are places where the authorities are keen on developing a welcoming environment for eSports operators.
Malta has been offering online gambling licenses for over 16 years. Issued by the Malta Gaming Authority, the license is considered one of the best and most reputable in the world. Previously, those wishing to offer casino, betting and eSports would have to apply for several different licenses. Recently, the government streamlined the laws reducing the number of licenses to just two.
Those in possession of a Malta gambling license do not need to apply for an additional eSports gambling license. They are however required to update their company business activities and notify the MGA of their intent. All software, policies, and activities must be in line with local and EU legislation.
Those wishing to set up an eSports betting company in Malta must apply for a B2C license. This allows them to offer eSports betting, regular sports betting and other types of online gambling.
The Malta gambling license is sought after and comes at a price. It is more expensive than most other jurisdictions and the requirements are tough.
Curacao has been offering an online gambling license since the mid-90s. In fact, it was one of the first jurisdictions in the world to regulate online gambling. Its license is one of the lowest cost and also the quickest to acquire. When compared to other jurisdictions, it is light on paperwork and bureaucracy. This makes it the perfect location for startups or those with a lower budget.
Those wishing to operate an eSports betting platform from Curacao need only apply for one license. This is not a specific eSports gambling license and permits license holders to provide any kind of online gambling services, including but not limited to online casino, sports betting, bingo, lotto or any game of chance.
Kahnawake, a Mohawk Territory and First Nations reserve in Canada has been offering an online gambling license for many years. The local legislation provides for the offering of eSports betting from that jurisdiction. There are several different kinds of licenses on offer and which one you need will depend on your individual circumstances. The most popular license is the CPA but permits for Key Persons also need to be applied for. It’s best to check with a professional service provider to ensure that you are applying for the correct permissions for your eSports platform.
The process of applying for an online gambling license for eSports in Kahnawake is very straightforward and can the application process can be completed in just a few weeks. Furthermore, it is a low-cost jurisdiction in terms of application fees and ongoing maintenance. Kahnawake has a good reputation, high ethical standards, and the authorities are responsive to innovative and proactive iGaming and eSports operators.
If you are looking to set up an eSports betting platform, contact Fast Offshore today. With over 22 years of experience in online gambling, we know the industry inside out. Furthermore, we have been through countless licensing procedures in jurisdictions all over the world. Regarding eSports, Fast Offshore has helped a growing number of operators set up eSports platforms. For advice, assistance, and more, drop us an email here.