America’s Casinos Aim to Welcome a New Age of Esports Gaming
The Professional and Amateur Sports Protection Act (PASPA) of 1992 forbade almost every state in the United States from participating in any sports betting businesses. Online casinos are also not legal in every state in the US. However, technology soon gave rise to many services being accessible online including video games and digital casinos.
One of the things that prevents citizens from fully enjoying this new feature of modern technology is state regulations. Even European nations have been developing its technology for online gambling for decades.
The Supreme Court striking down PASPA in 2018 is one of the signs that America is gradually welcoming the gambling industry in the country. However, it will still take time for each state to fully allow citizens to partake in sports betting and online betting in general. Despite this, many Americans believe that it will be a multi-billion dollar industry by 2020 or 2021.
How is America’s decision relevant to the esports industry?
There are a lot of reasons why America repealing PASPA is a big deal for the gambling industry, especially esports:
America is the home for the top three esports games: League of Legends, Call of Duty, and Overwatch. The developers for each of these games all have their headquarters in California, USA. The country also has some of the biggest teams participating in these games’ esports scenes. Team Liquid and Evil Geniuses are some of the top teams that come to mind.
Allowing the country to operate and visit online betting sites will open the opportunity for Riot Games, Blizzards Entertainment, and Activision for partnership. This arrangement will greatly help the developers capitalize on its fan base while also welcoming new investors. Aside from these games, other top esports games from the United States include Dota 2, CS:GO, and Starcraft.The American dollar is one of the top currencies in the world. It may not have the highest value compared to European euros and Kuwaiti dinars, but it is the most universally accepted. It is easy to convert into any currencies for any sports betting sites, including those that accept crypto. Speaking of which, Americans are also some of the first investors in Bitcoin.
The first thing that a business has to look into is their target demographic. The United States has a huge population of millennials and Gen Z, making it the home to the esports industry’s biggest potential market. It is also home to some of the best streaming services such as Amazon’s Twitch TV, Facebook Gaming, and YouTube Gaming.
Multiple pieces of research show that millennials and Gen Z are not fond of any slot game which most casinos are relying on. This is likely due to skill-based games that the younger generation grew up playing. That means that this existing population is not going to be visiting physical casinos to sit in front of slot machines but for socializing or the house’s table games. If those do not appeal to them, then esports and sports betting will be the biggest money-maker for both casinos and esports industries alike.
Why are casinos getting into the esports industry?
The professional esports gaming industry is a fast-growing market so it makes a lot of sense for casinos in the States to fully embrace it. One of the things that Las Vegas did first to welcome esports betting to the industry is hosting major events in the industry. This includes stadiums specifically for esports that are built by top casinos like Caesars. The company showcased a 4.45 m2 space which hosted an H1Z1 major tournament in 2018. Exclusive team sponsorships also come into play with these tournaments, of course.
Casinos are also trying to make skill-based casino games. It should be simple enough to learn quickly, complicated enough to be interesting, and interactive enough to be engaging. The danger of this idea is making the game entirely skill-based that might be exploitable. It would’ve been more profitable to establish an arcade if that happens, but then the casino couldn’t entice players with rewards. This skill-based gaming concept perfectly ties with esports gaming as well. Casinos also can’t alienate their existing audiences. More than 70% of baby boomers and Gen Y are still visiting casinos for the traditional slots. What the gambling industry has to offer for the next generation, other than its partnership with eSports, includes new skill-based games to replace traditional slots. Even the hardcore gaming communities of the top esports in the world will find casinos as a new space to explore.