Esports betting platform Unikrn had its wagering license approved on the Isle of Man on Tuesday. Several traditional online sports books already run international operations from the island, including PokerStars and 12BET.
Blockchain-based Unikrn was previously only licensed to authorize bets on esports in the U.K. and Australia, but the company has begun to expand its product into countries elsewhere, including South Korea, according to the Associated Press. Esports spectator betting will not yet be available in the U.S, but skill-based betting where gamers can bet on their own matches will soon be introduced to 41 states.
“There is finally a legitimate, regulated operator in the space that has a pretty comprehensive offering,” said Unikrn CEO Rahul Sood according to the Associated Press. Sood also told the AP that he believes the U.S. market for esports betting could potentially develop into a $9 billion industry by 2020.
Legalized esports betting comes just before the League of Legends World Championship takes place on Nov. 3 in South Korea. To place bets on Unikrn’s blockchain-secured platforms, users are first asked to verify their age and location. Unikrn, which is headquartered in Seattle, generates wagering odds for a player based on their profile within each specific video game.
“Players can place a bet on the Unikrn website into a mutual pool, play their next match, then come back to the site to claim their winnings or make another wager,” the Associated Press reports.
Unikrn launched in 2014 and is the first wagering company in the world built entirely using blockchain technology. The company’s investors include Mark Cuban, Elisabeth Murdoch, and Ashton Kutcher. The company maintains an esports betting venue at the MGM Grand Hotel & Casino in Las Vegas, where users can bet on themselves in video game tournaments, similar to poker. Unikrn plans to open similar venues at casinos elsewhere, according to the AP.
SportTechie Takeaway
In general, esports’ revenue model has often followed that of traditional sports, and for esports betting has been available at a variety of bookmakers for several years. Traditional professional sports stands to benefit too from legalized esports betting because personnel and organizations across the traditional sports ecosystem have invested in the esports industry. However, the ability for players to place bets on their own performance during esports events is an interesting wrinkle. Traditional sports books typically prohibit players betting on themselves.
While esports betting could expand across Europe and Asia through the Unikrn platform, full throttle U.S. expansion largely hinges on if and when a national rules governing sports betting are created. As of the Supreme Court’s ruling this past summer to strike down the federal ban on sports betting, states are required to pass their own legislation if they wish to legalize sports betting. Currently, the only states with full-scale legalized sports betting are Nevada, New Jersey, Delaware, West Virginia, Mississippi, and New Mexico.
Correction: An earlier version of this article suggested that betting on esports had not been available before Unikrn. Other bookmakers support esports betting, and the story has been edited to make that clearer.