Battleground Zero, which provides state-of-the-art facilities for gaming enthusiasts, was scheduled to open a new location this week in the food court at the Galleria Mall.

Those plans were foiled by the White Plains Building Department, who said the venue violated the city’s strict codes with regards to gaming arcades.

Various sources report that mall security crashed a soft opening over the weekend, shutting off the power and escorting staff from the premises.

Battleground Zero CEO Steven Christophersen expressed his frustration in a strongly worded press release on the company’s website.

“Our teams have worked extremely hard for this date, and we regret to inform you that we had been shut down by the City of White Plains Building Department, and to make it worse we have no idea why since we were in line with all permits and requirements as verified by the White Plains City Inspectors,” he said.

“To make matters stranger the shutdown comes from an Engineer who declared that selling t-shirts, computers, desks, and chairs is considered illegal in White Plains and in a shopping mall.

“I am as confused as you are why an American city is against internet, technology, and American businesses with software created in the United States and Silicon Valley.”

City of White Plains zoning laws forbid any store from operating more than three video game machines.

Store manager Marco Monge told local reporters that mall officials and lawmakers had voiced no concerns with the nature of Battleground Zero’s business model before the surprise shutdown.

“We’ve been working with the Galleria for months, and we all agreed that this is not an arcade and doesn’t fall under the city’s law,” he said.

“We’re working with the city right now to see if we can work it out.”

Karen Pasquale, adviser to Mayor Tom Roach, said the problem boiled down to a “misunderstanding” over the information provided in Battleground Zero’s permit paperwork.

“The Building Department is working through that now, and will be in touch with the applicant shortly,” she added.

Meanwhile, the Battleground Zero website is advertising a range of shirts that bear the slogan, “CITY OF WHITE PLAINS, NY…. LET US GAME!!!!”

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The report put the business models and industry sales of video games with loot boxes under the microscope, and showed a small number of players are contributing the most to the game’s revenue solely through the purchase of loot boxes.

In gambling terms, these players are called ‘whales’ and essentially keep the loot box ecosystem afloat with their high-spending, while the majority of players don’t engage with the system.

The Youth Protection Commission of the State Media Authorities believes loot boxes are preying on young children and are promoting gambling to gamers who don’t know any better, turning them into whales without parents realizing.

“It think it is conceivable that loot boxes violate existing regulation in place to protect against promoting gambling to children and adolescents,” said Wolfgang Krei?ig, chairman of the Youth Protection Commission.

If the plan for reform goes ahead, the Youth Commission could hand out fines and prohibit manufacturers from offering games with loot boxes elements unless they modify the game for the German market.

Germany’s lawmakers will decide whether a blanket ban is on the cards for games with lootboxes in March, and their decision could influence other countries grappling with the issue.

Why are lootboxes a problem for esports?

Given many of the world’s most popular esports titles feature loot boxes, potential restrictions could drastically affect local and international esports circuits.

For those who don’t know what they are, lootboxes are virtual boxes which contain randomized digital rewards which players can use in-game.

Counter-Strike: Global Offensive, League of Legends, Overwatch and PlayerUnknown’s Battlegrounds are just some of the big name esports games with loot boxes or optional microtransactions incorporated into their general gameplay, using these systems to award players with cosmetic items such as character skins and weapon skins.

What is irking regulators in Germany and around the world is that these virtual items are obtained by chance and you cannot buy what you want individually, leading to arguments about whether these games should be classified as gambling.

While none of these rewards are essential, the rarity of these advertised digital items heavily encourage players to make additional purchases of loot boxes for a chance at obtaining the items they want, without guarantee of getting them.

Some esports organizations also regularly team up with the game developers behind each esport to release exclusive team weapon skins, encouraging fans to purchase loot boxes for a chance to wear their favourite team’s colours in-game.

For those who don’t believe loot boxes are significant enough for such intense scrutiny, just know Overwatch recorded over $1 billion in revenue last year, 80 per cent of it from digital channels and in-game content sales which jumped 25 per cent year-over-year.

Why? Because of the massive 30 million strong fanbase spending money on lootboxes and cosmetic items.

At present, the Belgian Gaming Commission has classified loot boxes in video games such as Star Wars Battlefront II as gambling.

However, the United Kingdom Gambling Commission has dismissed loot boxes as a form of gambling, which is a big blow to those pushing for change given the UKGC’s immense influence on the international regulated gambling industry.

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The JSEU is comprised of the eSports Promotion Organization, Japan e-Sports Association and the Japan eSports Federation. Each company operated independently for years until the Computer Entertainment Supplier’s Association (CESA) aided their consolidation. The CESA is the main promoter of the Japanese video gaming industry as a whole and runs the Tokyo Game Show convention, one of the biggest annual gaming events on the calendar.

With all three groups now aligned in goals, they will combine their resources to promote the growth of the competitive esports circuit in the country.

“The global audience for esports is set to reach 300 million people by 2019, and 500 million by 2020. That is no different from real-life sports. Esports is mainly popular in Asia and in the U.S., and there is also hope in Japan to popularize esports. We will look to promote the industry and raise esports’ social status in Japan,” said JESU Representative Director Hideki Okamura in an official press release.

Japan has struggled to create a prospering esports scene even in recent years, despite being the third-highest country world-wide in video game revenues, with more than 65 million gamers spending a total of $12.5 billion in 2018 alone. The many reasons are complex, but they all boil down to current gaming laws in the country.

National laws currently prevent prize money from being pooled together using proceeds made from ticket sales, which is one of the most common practices international gaming publishers and third-party esports organizers use to ensure larger-than-life prize-pools.

The Act against Unjustifiable Premiums and Misleading Representations presently caps prizes at 100,000 yen (around US$890) for any competition that promotes or sells a product. Because esports tournaments are large-scale competitions for video games and often sponsored and advertised by the developers themselves, esports unfortunately comes under this umbrella.

As a result of their heavy anti-gambling stance and existing legislation, Japan’s best pro gaming talent has lacked a platform to thrive and make a living. Many have either joined international teams or stuck to amateur events as a result.

However, with the JSEU now in place, there will hopefully be a new way to circumvent the current laws and enable larger prize-pools for tournaments in the country.

The JSEU isn’t the first push for a renewed esports industry in Japan. Late last year, the Japanese government via JeSPA announced its intent to issue pro licenses to its most talented esports players in 2018, in the earliest effort to by-pass the current gambling laws lumping esports with pachinko, video poker and other forms of online gambling.

Local game developers like Square Enix have also opened up several “theatre cafes” and other venues for gaming demonstrations, in a stealthy bid to prepare for eventual legislative change.

We can only hope the formation of JSEU leads to a proper esports industry in Japan, given the amount of incredibly talented gamers, particularly in the annual fighting game scene.

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Filipino esports community figure Ren Vitug posted the news on Facebook and revealed the new guidelines were signed as far back as October last year, but only shared publicly this week with several local organizers.

Resolution No. 2017-21, or “Guidelines Governing the Conduct of Electronic Sports (E-Sports) in the Philippines”, confirms professional gamers participating in GAB sanctioned esports events hosted in the country have to apply for a 800 pesos permit to play, regardless of whether or not they are a citizen of the Philippines or a foreign visitor.

To successfully gain a license, players must have parental consent, provide income tax returns, certificate of membership with a professional esports club, and subject themselves to drug testing for THC and methamphetamine.

At this time, only players must go through drug testing protocols, and the licenses last for two years, subject to payment of licensing and renewal fees. Filipino players licensed by the GAB have to secure written authority from the board prior to travelling overseas to compete in global tournaments.

But it’s not just the players: “All persons, entities or associations” involved with the organization, operation and participation of a professional esports tournament must comply and pay for licensing to actually host and run the event, as “no tournament, competition or game of Professional E-Sports shall be held without permit duly issued by the board.” Organizers must also file their application at least ten days ahead of the event in question, otherwise it’s not a guarantee.

Team managers, coaches and promoters pay slightly more than the players for the permits (around 1,000 to 1,200 pesos) and organizers have to pay fees to get the proper license to just run their event, costing around 800 pesos per day – more if there are multiple esport titles played during the event. This could be costly for tournaments hosting multiple gaming competitions, though without the GAB’s approval, a professional event cannot legally run in the Philippines.

Three per cent of ticket sales profit and other revenue streams, such as “television, radio, and motion picture rights” must also be remitted to the GAB within fifteen days of the event’s completion, with a 50% deposit of the estimated percentage remitted to the board prior to its commencement.

There are some exceptions to all of these new mandatory fees and licensing requirements. Smaller amateur events with zero licensed players participating, or competitions that are just regional or minor qualifiers for a larger tournament later in the year, are not classified under the GAB’s definition of a “professional event”.

However, as soon as an event’s prize-pool exceeds 10,000 pesos or more, it will be classified as a professional gaming event under the new guidelines.

International organizers are not happy with the local gaming board’s manadatory requirements: Valve recently rescinded the Majors designation of Dota 2 Galaxy Battles 2018, just days away from commencing in the Philippines, declaring the new regulations associated with the drug testing as “unreasonable infringements on the privacy of the players”. The event has since had multiple international teams drop out, despite local organizer Fallout Gaming pressing on.

The GAB of the Philippines, the country’s governing body for sports and competitions, first announced its recognition of Filipino professional gamers back in August 2017, classifying them as athletes under Philippine law, similar to players in more traditional sporting leagues.

While the initial excitement has dialled down since, we can’t see some of these new mandatory regulations, particularly the daily permit fee per game, sitting well with local, smaller esports organizers. There is a passionate fighting game and competitive LAN scene in the Philippines that will be struck hardest by these new laws, given now every single participant must be licensed to even play, let alone the fees for hosting tournaments with more than one game competition.

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Provided by translation from Bloomberg Japan tech reporter Yuji Nakamura, the Japanese government via the Japan Esports Association (JeSPA) will begin granting pro licenses to its most talented competitive gamers in a push to make the country an “e-sports powerhouse” and by-pass complicated gambling laws presently lumping esports with the likes of video poker and other forms of traditional gambling.

The aim, as summarised by Nakamura, is to distinguish gaming “pros” from the general public, which will be defined by the developer of each popular esport title rather than a community-granted or self-styled status.

The original document, which you can read untranslated here, lists several popular esports titles to receive licenses first, including Street Fighter V Arcade Edition, Tekken 7, Winning Eleven 2018, Puzzle & Dragon and Monster Strike.

The pro licenses will provide a way around the present-day legal wording, but local laws which prevent prize money from being pooled together using proceeds made from ticket sales, a common money-raising practice that international game developers and other tournament organizers use to great effect, will still need addressing.

Japan’s esports growth has been stunted by such heavy gambling restrictions, which has prevented star talent from emerging because making a living from competitive gaming is extremely difficult compared to in other countries.

Millions of Japanese citizens used to watch nationally televised video-game tournaments in the 1980s and 1990s hosted by big-name gaming companies like Konami, but players were never paid or awarded prize money.

In the meantime, several game developers such as Square Enix are quietly preparing for an imminent legislative push, opening up theatre cafes for gaming demonstrations. We can only hope Japan’s new measures can allow the country to enter the world stage soon, given next year the industry is predicted to be worth a whopping $1.6 billion.

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Local Filipino gaming organisation Mineski.net posted the GAB’s statement on their official Facebook page, which confirmed the organization has “started recognizing esports or competitive computer/video gaming as among the professional activities falling under its regulation and supervision.”

The move means esports will now be regulated by the GAB alongside traditional sports like boxing, basketball, golf and football, though the government agency has acknowledged esports is a different beast altogether: “While esports is different from the traditional competitions that we are used to, it cannot be denied that esports requires tremendous amounts of skill and training, and in the case of [multiplayer] online battle arenas (MOBA), careful planning and strong teamwork. ”

The GAB vows to health and welfare protection for esports players, along with upholding the “integrity of the games and prevent match-fixing, fraud and possible breach of contracts that could leave our local players at a disadvantage.”

There is word, as reported by eSports Observer, that the government will tax winnings earned from esports events.

The Games and Amusements Board (GAB) was founded in 1951 and is a government-ran regulatory body of professional sports in the Philippines, headed by a Chairman and two commissioners.

The GAB has already confirmed they have licensed around a dozen Filipino players who are competing in The International 2017 DOTA2 Championships in Seattle, Washington later this year.

EsportBet opinion: Considering the GAB regulate many other oddball sports and activities in the country, it’s great to see they have acknowledged the growing importance of esports, and it will definitely be a boon for the local professional gaming teams based out of the country.

Not too long ago the eGG (Every Good Game) network just signed with the Philippines’ Globe’s BEAM TV for exclusive broadcast rights to air their eGG eSports channel, the first esports HD channel in South East Asia.

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ESIC is a not for profit organisation established in 2015 by key esports stakeholders to ensure the e-sports industry runs free from match manipulation, cheating, betting fraud, online attacks, doping and other integrity issues unique to the world of esports.

The MoU between ESIC and MGA aims to promote cooperation between the two organisations to ensure the e-sports industry runs free from manipulation. As part of the agreement, the Malta Gaming Authority and its licensed gaming operators will be required to provide information about any “suspicious betting patterns” to assist ESIC with investigations into suspected insider betting or match fixing.

ESIC Integrity Commissioner Ian Smith said, “We are delighted that the Malta Gaming Authority has agreed to work with us in making e-sports a safer wagering environment.

“The MGA is a very highly respected regulator of sports betting and it has been a pleasure developing this information sharing mechanism with them. Adding the experience and vital information of our other partners in the information exchange to the Authority’s intelligence database and vice versa will undoubtedly strengthen all our efforts considerably.”

The MGA is an independent regulatory body responsible for overseeing and governing all gambling activity in Malta, both online and land based. The organisation aims to ensure all gaming is conducted fairly, transparently and free from crime or corruption.

Working under the laws set by The Lotteries and Other Games Act 2001, the MGA works to protect minors and vulnerable players, safeguard player rights, promote responsible gambling practices and ensure the integrity of all games and gaming devices.

The MoU with ESIC is further proof of Malta’s commitment to remaining one of the world’s leading gambling jurisdictions, and will help attract operators to seek licensing from the MGA.

MGA Chairman Joseph Cuschieri said, “Keeping abuse and crime out of sports betting is high on our agenda and the MGA will always be at the forefront to collaborate in such matters both locally and internationally”.

In March this year, the UK Gambling Commission also signed a MuA with ESIC to further improve the integrity of the e-sports gambling scene in the United Kingdom.

At the time of signing the agreement, UK Gambling Commission programme director Richard Watson said, “Esports 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 esports both as entertainment and for those who wish to place bets on British licensed markets”.

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Enter sports and live entertainment company, AEG, which announced on Tuesday it had invested in the multi-game eSports organisation.

As such, Immortals – which currently has teams in League of Legends, Overwatch, CS: GO, Vainglory and Super Smash Bros. – will make Los Angeles its new home.

President and CEO of AEG, Dan Beckerman, said the move into eSports is a “natural progression” which will further the company’s “leadership in sports and live entertainment”.

“We have ambitious plans for the campus to become the epicentre of eSports in Los Angeles,” he added.

A key component to the deal is AEG’s LA Live entertainment complex will host Immortals’ Los Angeles-based tournaments.

The 5.6 million square foot complex is home to Staples Center, the Microsoft Theatre and features a number of sports and music venues as well as restaurants, nightclubs and entertainment facilities.

The ESPN’s West Coast broadcast centre is also situated at the LA Live complex.

CEO of Immortals, Noah Whinston, has praised AEG for its “unrivalled experience in the cross-section of sports and entertainment.”

He added it “makes them an ideal partner for any organisation” due to the “seemingly endless well of talent and business experience AEG brings to the table.”

Immortals co-owner and Lionsgate President of Interactive Ventures & Games, Peter Levin, agrees with Whinston in regards to the partnership and the Immortals franchise.

“With 200 million fans worldwide, Immortals is uniquely positioned to bring eSports to a truly global audience,” he said.

AEG got its first taste of the eSports scene last year when it partnered with the largest eSports organisation in the world, ESL.

The partnership has seen ESL utilise AEGs stadiums, arenas, clubs, and theatres for tournaments and events.

Betting on eSports in LA?

Legally betting on eSports in Nevada was recently signed into law – even though bookmakers had already offered betting markets. But will it ever be legal to bet on eSports at the Staples Center?

It might if the state wants to become the next eSports hub before Las Vegas where huge arenas are being built, and, as previously mentioned, spectators can bet on teams.

While many are quick to question whether the people in the audience at eSports tournaments are old enough to gamble, a 2016 Newzoo’s Global eSports Market Report revealed more than half of eSports enthusiasts around the world are aged between 21 and 35.

Since pari-mutuel betting is legal in California, all lawmakers have to do is introduce a similar bill to Nevada to include competitive gaming and other events such as award shows under the same category.

Then LA may have a fighting chance at becoming North America’s next eSports hub.

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The Nevada Senate Bill 240 amends pari-mutuel betting legislation to include competitive gaming and other events such as award shows. It was signed by Nevada Governor, Brian Sandoval, on Saturday and will be enforced from July 1.

While esports is not directly mentioned in the amendment, it is technically included under “other events” and betting on the available markets is now legal in the state.

While gaming regulators in Nevada already offer esports markets – bookmaker William Hill was granted permission in November –, the bill formalises the activity and allows clarification for sportsbooks. It may even increase the number of markets on offer for punters interested in esports betting.

The bill was first introduced on March 23 at a Gaming Policy Committee meeting. Here, esports athlete, Johnathan ‘Fatality’ Wendel, used his own experiences as a professional gamer in his testimony. He detailed the tough training regime and the league’s similarities to athletic competitions as reasons why esports should be considered a real sport.

It is likely his evidence gave the bill a push since Governor Sandoval and Nevada Gaming Commission Chairman, Tony Alamo, both said they were impressed with Wendel.

Chairman of the Gaming Control Board, AG Bernett, also made a comment during the hearing stating he wanted esports events to be held at the T-Mobile Arena – where huge pop stars perform and major sporting events are held – on the Las Vegas Strip.

“Ideally, you would have people coming from all over the globe to compete, with people paying to come in and bet on that event like you would a sportsbook,” he said.

Nevada has been aggressively trying to become one of the main destinations for esports, in terms of holding events and betting on tournaments.

There are already a number of esports venues in the state including the 15,000 square feet arena opened by Millenial Esports – the Halo Championship Series and Madden NFL Championships have both been held here. The Luxor is also planning to open a multi-tiered esports arena.

As the esports events are becoming more frequent and more popular, and now that quality betting regulations are in place Nevada could get its wish.

UK Gambling Commission partners with Esports Integrity Coalition

The UK Gambling Commission has signed an information sharing Memorandum of Understanding (MOU) with the Esports Integrity Coalition (ESIC) to help regulate?the industry. It is not unlike how the Nevada regulator monitors esports tournaments held in Las Vegas.

The partnership will see?esports grouped with traditional sports, including football and cricket, in terms of detecting and preventing match-fixing and other betting malpractice in sport.

The UK Gambling Commission’s Sports Betting Intelligence Unit (SBIU) will work with ESIC to focus on betting corruption in eSports.

ESIC will be able to use intelligence from both the UK Gambling Commission and Nevada’s regulator too.

“This MOU is a significant step for ESIC and the esports community,” ESIC Commissioner Ian Smith, said.

“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.

“As esports 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 esports successful for players and fans alike.”

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The UK Gambling Commission wants parents to be aware of the dangers of eSports skin betting.

A Commission paper released this week has revealed the growing number of unregulated third-party websites which allow gamers to wager on video game tournaments using in-game items, such as digital guns and knives. These are known as skins.

The Commission’s CEO, Sarah Harrison, commented on the findings, stating it is worrying parents could be giving money to their child to play a computer game when in fact they are gambling.

She noted the rise of gambling sites using skins as a betting currency.

“Gambling on eSports with in-game-items is growing and we need to make sure all gambling is fair, safe, crime-free and protects the young and vulnerable,” Harrison said.

Undersecretary for the Department of Media, Culture and Sport, Tracy Crouch, supported the Commission’s findings.

“eSports is a phenomenon that gets bigger every day and is enjoyed by millions, but it is a concern that there are unlicensed websites jumping on the back of popular video games and encouraging children to gamble,” she said.

“The Gambling Commission has shown that it will take action and prosecute but it is important that parents are vigilant too and know about this risk to their children.”

Crouch is referring to the case the Commission took against a pair of eSports gambling site promoters. The pair pleaded guilty last month, paying ￡265,000 in fines and court costs.

The Commission has also been proactive in terms of regulation, requiring any site which provides betting on eSport matches to have UK Gambling Commission licence. Licences are also required if a site allows virtual goods to act as a “de facto virtual currency.”

The eSports Position Paper

The position paper focuses predominantly on gambling in eSports. When it comes to social gaming the Commission’s stance is there is no “persuasive case to pursue further regulatory
intervention at this stage.”

It maintains the view gambling sites which offer virtual currencies must have a UK Gambling Commission license, since it’s just another form of money.

The paper says since interpreting legislation is up to the courts, it “seeks to balance an interpretation of the legal framework” to assess “where interactive entertainment has crossed or is in danger of crossing boundaries into licensable gambling activities.”

The Commission said it will penalise any unlicensed gambling facilities which present “a risk of harm to children is and will remain a significant aggravating factor.”

It noted while a “zero-tolerance approach” will be taken when it comes to unlicensed gambling operators, the Commission “will also liaise with games publishers and/or network operators who may unintentionally be enabling the criminal activity.”

When it comes to skin betting the Commission said it has been proactive in engaging with global regulators to ensure consumers, particularly children, are protected.

It also added skin-betting is “a by-product of the manner in which games have been developed and in-game economies incorporated for commercial benefit.”

Despite the Commission revealing it was unable to find any evidence “of any direct commercial benefit to games publishers from the illegal gambling facilities” it says they indirectly benefit since “it is the games publishers who are the ultimate source of in-game items acting as a de-facto central bank.”

The paper addressed the concerns over the integrity of eSports events but found no evidence to support the trepidation.

But the Commission said it “will continue to work with those committed to raising awareness and addressing integrity risks within eSports including exploring memorandums of understanding where appropriate.”

eSports statistics

The paper also revealed only 8.5 percent of adults surveyed via its gambling participation surveys had wagered on eSports in the last year. Of the small group of eSports punters, 58 percent of eSports gamblers were male, while 42 per cent were female, but women were found more likely to bet using in-game items.

When it comes to betting currency, 90 percent bet using in-gaming items, 88 per cent used real money, and 78 percent used both.

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