Gambling Commission bolsters efforts to combat corruption in e-sports betting with ESIC agreement

Gambling law expert Christopher Rees-Gay of Pinsent Masons, the law firm behind Out-Law.com, said the memorandum of understanding (MoU) signed by ESIC and the Gambling Commission was a sign of the increasing focus being given to integrity in the growing e-sports betting market.

ESIC is a not-for-profit body whose members include e-sports companies and gambling regulators. It works to combat "integrity challenges" facing e-sports, including "match manipulation and betting fraud" and operates an anti-corruption code and disciplinary procedure to address those challenges.

Under the new MoU, the Gambling Commission's Sports Betting Intelligence Unit (SBIU) will work with ESIC "to identify potential irregularities within e-sports gambling". ESIC signed a similar agreement with the Nevada Gaming Control Board earlier this year.

In a statement, ESIC said it would "benefit from the intelligence available from both these pre-eminent regulators and they, in turn will benefit from information gathered from ESIC’s members who are not licensed in the UK or Nevada, but see betting activity across e-sports worldwide".

"The MoU can only be seen as a good thing for players, gambling customers and the gambling industry," Rees-Gay said. "The recent case of player cheating has shown that the integrity of e-sports could be questioned. It is an area that the Gambling Commission commented on in their March publication on e-sports. Any measures taken to identify potential irregularities within e-sports gambling and reduce any integrity risks in this growth area are re-assuring for all."

ESIC commissioner Ian Smith described the MoU as "a significant step for ESIC and the e-sports community".

"The Gambling Commission has significant resources and powers that will be invaluable in helping to combat any emergence of organised crime or serious fraud within our rapidly growing sector," Smith said. "As e-sports continues to grow successfully, so will the inevitable attempts to profit on the back of that success through illegitimate means. This agreement will help protect all the individuals, teams and companies working so hard to make e-sports successful for players and fans alike."

Richard Watson, programme director at the Gambling Commission, said: "E-sports is a developing sector that offers new challenges for the betting industry, with potential for further market growth. This agreement demonstrates our commitment to supporting ESIC in addressing the potential integrity risks, to help maintain public confidence in e-sports both as entertainment and for those who wish to place bets on British licensed markets." 

ESIC said it plans to issue guidance to its members "in the coming weeks" to explain what the MoU with the Gambling Commission means for them.