Esports Betting's Regulatory Catch-Up: A Simplified Licensing Framework
The esports betting industry has grown rapidly in recent years, but its regulatory framework has struggled to keep pace. Traditional sports betting has decades of established regulations, while esports is still navigating a complex landscape that spans multiple categories, including skill-based competition, game publishing, and virtual currencies.
Esports licensing is an edge case due to the lack of precedent in traditional sports betting. Many jurisdictions license products by line, such as casino, sportsbook, or poker, but esports often falls into a grey zone between these categories. This ambiguity can be costly for operators, who may need to apply for multiple permits and wait for approval.
The Anjouan Betting and Gaming Board has adopted a single-permit approach, issuing one authorisation that covers casino, sportsbook, poker, and esports betting together. This permit is valid for four years and costs €17,828 annually, with a 0% tax on gross gaming revenue.
Crypto settlement is common in the esports betting industry, but many offshore regimes leave it in an awkward grey zone. The Anjouan regime has aligned itself with the FATF Travel Rule for virtual assets, bringing crypto deposits and withdrawals under the permit rather than beside it.