Esports betting is fast becoming a popular avenue for many, with a global revenue exceeding $1 billion annually. Unfortunately, Georgians have not been able to fully dive into this endeavor, given the limitation of sports betting legality in the state. However, this may soon change. After decades of debate and countless attempts, online sports betting may finally be fully legal in Georgia. As of February 2024, the Senate has already passed a bill regarding legalizing sports betting in the state. Senators voted 35-15 to send the bill to the House for further debate. If the House should vote in favor, Georgia may soon become the 40th state that allows sports betting. Notably, if this happens, it may also greenlight a wider rollout of esports betting. In light of this potentially game-changing new legislation, here is a primer on esports betting in Georgia.
A look into esports and esports betting
Before we can dive into esports betting, it’s important to understand the esports industry itself. Over the last decade or so, esports has risen to become a successful global industry, with a valuation estimated to be nearly $2 billion by 2025. Every year, dozens of professional esports teams, like FaZe Clan and Cloud9, take part in massive international tournaments with cash prizes in the millions. For instance, The International 2021 Dota 2 Tournament had a prize pool of over $40 million.
While many more niche games can be played in these esports events, the most widely watched are competitive player games. These include titles like Valorant, Fortnite, and League of Legends. Depending on the competition, these games can garner large numbers of viewers. The recently concluded Valorant Masters Madrid, for instance, had a peak viewership of about 1.3 million. In-person viewership is also nothing to scoff at, with some events filling up massive venues, including the Staples Center. This outpouring of support has understandably attracted sponsorships from companies like Red Bull, Oakley, and BMW, which only adds to this sector’s legitimacy.
Of course, with the stakes as high as they are now in esports, online betting comes naturally. According to Telemedia Online, esports betting came shortly after the developer Valve released new cosmetics for its game CounterStrike. Enterprising gamers with coding knowledge soon took to betting on game outcomes with these cosmetics as the prize. Today, esports betting looks very different and is much more refined. To illustrate, esports betting tips explain that the best bets now use sophisticated equations and strategies. Unlike earlier esports betting, which was based more on luck and personal preferences, contemporary bets are based on calculated betting odds (of which there is the Decimal, Fractional, or American type) and staking methods (such as proportional or fixed). These enable bettors to make more educated guesses with a lower risk. Overall, this has helped make esports betting a lucrative hobby for many globally.
The state of gaming in Georgia
In Georgia, esports betting lives in a grey area, much like more traditional sports betting. This is because some fantasy sports platforms can operate in the Peach State. That said, many Georgians get around this hurdle by placing esports bets at the Tennessee-Georgia state line. Tennessee is among the 39 states where online betting is already legal. Alternatively, some Georgians travel to Florida. Like Tennessee, the Sunshine State recognizes sports and esports betting as legal activities. Should esports finally be allowed in Georgia, reports estimate that there are already 16 betting platforms lined up for operational permits. It should be noted, though, that the bill sent to the House was still endorsed to undergo potential constitutional amendments. This is reportedly due to the fact that the said bill essentially wants to tuck sports betting under the lottery umbrella. Some government officials say this will possibly require adjustments and discussions, as this is a clear attempt to circumvent existing regulations.
Another potential esports betting concern slowing down legalization is the use of cryptocurrencies on some platforms. Although crypto is the largest financial diversifier of the 21st century, it remains a volatile and decentralized virtual currency. As such, while leading tokens like Bitcoin boast a market cap of almost $1.3 billion, they are still vulnerable to massive value drops. Such was the case in the crypto crash of 2022, where many token values dipped by over 50%. In esports betting, this concerns some stakeholders, who worry that the lack of stability and safety nets means losses can be more substantial for bettors. Nevertheless, many betting platforms do offer some risk-reducing features. For instance, some platforms offer live esports betting services, wherein bettors can make the most of casters’ comments to shape their strategies.
Despite this, Georgia remains a huge esports and gaming hub in the USA. Despite politicians’ hesitation to legalize esports betting, the perks of the gaming sector are not lost on them. In fact, local legislation offers significant tax incentives to those in the digital and entertainment industry should they decide to set up their operations in Georgia. In the public sector, gaming is an even bigger interest. According to a recent impact study by the Georgia Department of Economic Development, Atlanta ranks first nationwide in terms of the best gaming environment. Along the same vein, the Georgia Esports League also named the city as the “esports capital of the USA.” To date, about a fifth of all players in the country are found in Atlanta. Gamers in Georgia also display diverse gaming tastes, with high downloads across titles like Candy Crush, Stardew Valley, Minecraft, Mobile Legends, and Call of Duty. As a result, many esports events also take place in Georgia. Last December alone saw multiple gaming-related activities, including the GirlGamer Festival, Esports Summit, and Dreamhack Atlanta.
What are the benefits of esports betting for Georgia?
As it is, the biggest advantage to legalizing esports betting in Georgia would have to do with profits. Currently, the aforementioned tax incentives have already resulted in companies like Eyes Wide Games and White Knuckle Games setting up shop in Georgia. This has helped bring in record-breaking profits of about $155 billion as of January 2024. That said, this amount can grow even more if revenue from esports betting is added to the mix. This is the case in other states that embraced this form of betting, like New Jersey. Sports betting in the Garden State just over $229 million in state tax revenue in a single year.
Then there’s also the profits to be made via gaming tourism, as more bettors will happily flock to Georgia to stake their bets. This will also help further boost the local esports scene by encouraging the creation of more employment opportunities.
