Betting on video games
A law set to go into effect Saturday, July 1, will allow bettors in Nevada to make pari-mutuel wagers on events such as the World Series of Poker. This type of betting has traditionally been used for contests such as horse races, but it now could be used for e-sports events such as video game tournaments, which have become increasingly popular.
Here’s how it works: Rather than getting set odds when you make a bet, the odds are determined by how many people bet on a contestant. Using the World Series of Poker as an example, say 10 of 100 bettors each wager $10 on veteran pro Daniel Negreanu to win the WSOP’s Main Event. If he prevails, after the house takes a percentage, those who bet on him would win about $85.
When placing a wager, bettors don’t know precisely what odds they’ll get, but this type of betting appeals to casino owners and sports book managers because the house can’t lose. “When you do something pari-mutuel, you have no risk,” said Johnny Avello, director of race and sports operations at the Wynn Las Vegas.
Avello acknowledged that many bettors like to know the exact odds they’re getting when they bet, but if parimutuel “is the only game in town, it would work.”
Until the passage of Nevada SB240, Nevada casinos — where many Californians place bets — could take wagers primarily on events determined on the field. That’s why they haven’t taken bets on events such as the Academy Awards, though online betting sites sometimes offer odds for such events.
There have been exceptions, such as who will be the NBA’s most valuable player or college football’s Heisman Trophy, and these will now be eligible for pari-mutuel betting. However, the bill does not allow betting on politics.
Limited e-sports wagering has been allowed in Nevada since November, according to Casino.org, but SB240 “enshrines it in Nevada law.” The gaming analysis site said the bill is a nod to Millennials who appear to be as interested in virtual sports as they are in on-field contests.
But there are concerns that video games are more difficult to regulate than sports where outcomes are determined on the field.
“Betting on other people playing video games is different from betting on other people playing football, in one major respect: The National Football League oversees the game to the point where it checks the air pressure in footballs,” said Professor I. Nelson Rose in a column on his site, Gambling and the Law.
“There is no equivalent organization with e-sports. Even the games are owned by companies,” he added. “Every few weeks, they change the game. Could betting on football be regulated if the owner of the entire game were to arbitrarily change the shape of the ball every week?”