Risk Governance in Esports Gambling: Addressing Integrity and Regulation in a Rapidly Evolving Ecosystem

Session Title

Esports Betting & Competitive Gaming

Presentation Type

Paper Presentation

Start Date

27-5-2026 12:00 AM

Abstract

Esports gambling has rapidly grown into a multi-billion-dollar global industry, incorporating traditional betting and fantasy esports. While this expansion brings exciting opportunities, it also presents significant risks, including threats to competitive integrity (match-fixing, cheating), financial vulnerabilities from unregulated skin-betting and cryptocurrency transactions, and social concerns like underage participation and problem gambling. Traditional risk management, which focuses on mitigating known risks within single organizations, is inadequate in this decentralized, transnational environment with diverse stakeholders: game publishers, tournament organizers, regulators, betting operators, and players. This presentation proposes risk governance as a more holistic approach to these challenges. Unlike reactive risk management, risk governance proactively anticipates, prioritizes, and addresses risks across organizational boundaries. It emphasizes collaboration between public and private sectors to create legitimacy, transparency, and trust while fostering innovation. By examining examples such as the Counter-Strike skin-betting scandal and Riot Games' evolving gambling policies in League of Legends, this presentation demonstrates how risk governance can address esports gambling’s systemic vulnerabilities. It advocates for governance frameworks that balance rapid technological innovation with consumer protection and competitive integrity.

Author Bios

Dr. Tobias Scholz, associate professor at the University of Agder, is a pioneer in esports research with 25 years of experience. He authored eSports is Business and co-edited the Routledge Handbook of Esports. As founder of the Esports Research Network and CSO at metagame, he bridges academia and industry. His work in Norway focuses on developing degree programs that use esports to teach future workforce skills, shaping the evolution of the field.

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May 27th, 12:00 AM

Risk Governance in Esports Gambling: Addressing Integrity and Regulation in a Rapidly Evolving Ecosystem

Esports gambling has rapidly grown into a multi-billion-dollar global industry, incorporating traditional betting and fantasy esports. While this expansion brings exciting opportunities, it also presents significant risks, including threats to competitive integrity (match-fixing, cheating), financial vulnerabilities from unregulated skin-betting and cryptocurrency transactions, and social concerns like underage participation and problem gambling. Traditional risk management, which focuses on mitigating known risks within single organizations, is inadequate in this decentralized, transnational environment with diverse stakeholders: game publishers, tournament organizers, regulators, betting operators, and players. This presentation proposes risk governance as a more holistic approach to these challenges. Unlike reactive risk management, risk governance proactively anticipates, prioritizes, and addresses risks across organizational boundaries. It emphasizes collaboration between public and private sectors to create legitimacy, transparency, and trust while fostering innovation. By examining examples such as the Counter-Strike skin-betting scandal and Riot Games' evolving gambling policies in League of Legends, this presentation demonstrates how risk governance can address esports gambling’s systemic vulnerabilities. It advocates for governance frameworks that balance rapid technological innovation with consumer protection and competitive integrity.