eSports Betting Coming to Pennsylvania?

To the state's credit, Pennsylvania was one of the first two states to legalize retail and online sports betting. They were also one of the first states to authorize online casino play. What the state legislators have been slow to do is approve a law that would allow the state's residents and sports bettors to bet on eSports games and events.

In the world of sports, eSports is a rather new phenomenon. It involves competition based around the playing of online video games like "Mobil Legend", "Dora 2", and "League of Legends."

In recent years, eSports has become a multi-billion dollar industry, projected to create up to $5 billion by the end of the decade. Major tournaments can render millions in cash prizes with the top international individuals and teams taking down millions in winning. It would be an understatement to say eSports is a fast-growing industry.

One of the great features of eSports competition is it lends itself to being a great sports betting market. Sports bettors can wager on head-to-head competitions (individuals and teams in league competition) and teams to come out on top in major sponsored tournaments all over the world.

To date, several states have already legalized eSports wagering. Pennsylvania is not one of those states. With the state currently surrounded by states that do allow such sports betting activities, its legislators look ready to open the eSports betting window.

Pennsylvania's eSports Betting Legislation

Behind the leadership of State House Representative Ed Neilson (D), a bill is currently on the PA Huse floor for consideration. Addition support for HB 733 has been found in the form of Representatives Jose Giral, D-Philadelphia, Stephen Kinsey, D-Philadelphia, Joe Ciresi, D-Montgomery County, and Barry J. Jozwiak, R-Berks County.

Under the guidelines as set forth by HB 733, eSports is to be defined as follows:

“A competition involving video games in which players who are 18 years of age or older compete against each other and the dominant element determining the results is the relative skill of the players.”

As part of the legislation, the state would be looking to secure a 36% tax rate based on gross eSports betting revenue. At this time, that number has not yet been set in stone. Also, access to offer eSports betting would simply be added to any current sports betting licenses that the state has previously issued.

Chances of Passing

Rep. Neilson initially introduced the concept of passing eSports betting legislation in January of this year. He was quick to point out the tax revenue possibilities of getting involved in this emerging sports betting market. He also made mention of the fact that the city of Philadelphia was going to be home to a multi-million-dollar esports-dedicated facility (Fusion Arena), which is already under development. It is expected that the arena will serve as a major U.S. eSports hub that would draw interest from top international tournament organizers.

Given the state has always been friendly to the concept of online gambling, it's highly likely this bill will get passed in the near future.