esports: the rise of competitive video gaming

eSports – The Rise of Competitive Video Gaming

Brett Abarbanel, Ph.D.UCLA Gambling Studies Program

University of California, Los Angeles

What are eSports?eSports = “electronic sports”

Competitive video gamingVariety of styles

Team v. Team, 1 v. 1, individual performanceCore of eSports is similar to the industry from which it derives its name

Industry GrowthTotal eSports industry is estimated at ~US$325M

~67.4% YoY growth from 2014Biggest markets: US and China

North America, China, and South Korea make up ~61% of eSports revenues

(Newzoo, 2015; Eilers Research, 2015)

Estimated US$315M wagered in 2015Projected US$23.5B by 2020

eSports are Pinnacle’s 7th biggest market in terms of volumeOccasional eSports viewers and eSports enthusiasts are twice as likely to gamble in online casinos and/or on real-time sporting events

Industry Growth

Broadcasting on regional and national channels in South Korea, Germany, UK, France, US

“Heroes of the Dorm” on ESPN2 in April 2015January 2016 – ESPN adds eSports to front page newsfeedBlizzard buys MLG for US$46M2015 League of Legends World Championship Viewership: 36M viewers

Full Tilt PokerFTP available on Steam platformSponsorship of G2 eSports

(LoL eSports, 2015 Newzoo, 2015)

Industry Growth

Gambling on eSportseSportsbook

Daily Fantasy eSports

Game-mediated betting

Head-to-head betting

Gambling in eSports

Image Courtesy of Dr. Daniel King, University of Adelaide

Gambling themes in-game - Slot machines, Borderlands 2

Gambling in Video Games

Professional teamsLevels of training

Tournament OrganizationSport PsychologyEthics in eSports

Performance-enhancing drugsEtiquette and BM-ing

Competition – Sport and Gaming

Defining gamblingRisking something of value on an event whose outcome is in doubt

RNG functionsProcCritDeal rand([x y]) damage

Game Mechanics - Gambling

HearthstoneTransform into a random minion Discover mechanicAttack/Damage a random minionDeal randomly-distributed damage

Game Mechanics - Gambling

“Wizard Poker”Skill transference

Competitive strategy gamesSometimes with randomness involved

Bluffing (and calling bluffs), going “all in”

Negative behavioursTilting/Getting Salty

Poker branding already appearing in Hearthstone

Gaming and Poker – the Example of Hearthstone

BlizzCon Hearthstone Exhibition – Poker Player Match-up

Potential LiabilitiesNo universal/standardized rules or oversightAverage salaries lower than most sportPlayer ageAdvertisements - Twitch

Integrity ConcernsTournament self-reporting Match-fixing

General CSR and HealthTime on device, Time spectating

Integrating RG Practices

Unikrn Competitive Integrity Certification programPlayer code of conductStandards for investigating possible violationsSpecific rules tailored to both LAN and online-based events

Integrating RG Practices - Unikrn

eSports and gambling are convergingIndustries meet…and explodeGame components overlap

Gambling components in video gamesGaming components in gambling games

Needs a unique approach to responsible gaming/gambling

eSports contains both old and new RG issues

To sum it all up…

Questions? Comments?

Brett AbarbanelBAbarbanel@mednet.ucla.edu

310-206-9942

Cover Images Courtesy of LoL eSports and Intel Extreme Masters