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ESIC Publicly Addresses False Narrative That the Commission Works for the Esports Betting Industry

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The Esports Integrity Commission has, over the past few years, mistakenly been accused of working for the esports betting industry or being an organisation formed by the betting industry for the betting industry’s purposes. Whilst we have historically tried to address this misconception privately, it has now surfaced again in a way that damages the integrity of esports and the Commission in a way that needs to be publicly addressed.

 

BACKGROUND CONTEXT OF STATEMENT

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First: In Nevada a Bill being sponsored through the State Senate by Senator Ben Kieckhefer, SB 165, seeks to establish an Esports Commission for the regulation of esports related activities in the State. In the sponsoring process, the Judiciary Committee considering SB 165 were told that ESIC, (who has worked with the Nevada Gaming Control Board since 2016 and was a founding member of the Nevada Esports Alliance) was in favour of the Bill. This is false. ESIC opposes SB 165 and has now taken steps to provide explanations to the Committee relating to its position. However, quite apart from certain parties purporting to speak on our behalf without authority, an underlying narrative emerged that: ‘ESIC’s views should be dismissed because the Commission is a servant of the betting industry’.

Second: The same false narrative was put forward to the Entertainment Software Association (“ESA”), the body representing most video game publishers and developers and all of those who publish titles prominently used in esports, by some of its members urging the ESA not to engage with ESIC because ESIC was alleged to “work for the betting industry”.

Third: Disaffected players banned by ESIC for betting related offences and some of their supporters have been reported to be coordinating a broad effort to spread this same false narrative that ESIC works for and serves the betting industry in an attempt to undermine the legitimacy of competitive integrity in esports. This coordinated effort has been reported to ESIC to include rhetoric such as ‘ESIC falsely asserting certain matches are fixed so that the betting operators don’t have to pay out the winning bets on those matches’. This is both an ignorant and damaging narrative not only to ESIC but to the integrity of esports broadly. Such assertions would be entirely antithetical to the purpose and demonstrated work ESIC has undertaken for the sake of competitive integrity in the esports industry for more than five years.

 

STATEMENT

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Despite the differing points of origin and the various malicious motives of those propagating them, all of these narratives need to be addressed and resolved and so ESIC Commissioner, Ian Smith, has considered it prudent to make the following statements:

“ESIC is neither for or against betting on esports. We are not advocates for betting nor crusaders against it.

It is noted, however, that betting on esports is a form of entertainment for most bettors and drives sponsorship revenue and fan engagement for the esports ecosystem. Conversely, the existence of betting opportunities does also raise challenges including, of particular concern to ESIC and central to our mission, the incentive for punters to commit betting fraud by match-fixing. In this respect, our role is to protect the esports industry from that danger.

ESIC exists for the esports industry; primarily for the protection of the players who would be the first and main casualty of any match-fixing scandal (please refer to the detrimental effects that match-fixing has historically had on the competitive Starcraft2 esports scene following the 2015/16 match-fixing scandals in Korea).

When betting fraud is perpetrated, competitive integrity is tarnished (among other negative outcomes). Coincidentally, the legitimate esports betting industry also suffers loss when betting fraud is committed. Therefore, it is of common and synergistic interest to both the esports industry and the betting on esports industry to address the issue of match-fixing through ESIC.

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In fact, it is impossible to combat match-fixing without working with the legitimate esports betting industry. Betting data is at the heart of determining whether or not a match might be fixed and betting data is the key evidence in any prosecution of a match fixer. Furthermore, every traditional sport works with the betting industry to combat match-fixing and relies upon such data in a similar manner. This approach is not unique to ESIC.

ESIC is a not for profit members association – we are owned by our members. We have two categories of membership: Our esports members (primarily Tournament Organisers) and our Anti-Corruption Supporters (primarily betting operators, but also government and state gambling regulators, law enforcement, monitoring companies, data providers and industry bodies). From a constitutional point of view, the two do not overlap. Only the Esports Members determine the strategic aims and priorities of ESIC. The Anti-Corruption Supporters participate in our Suspicious and Unusual Betting Alert Network in service of ESIC and our Esports Members. In other words, ESIC works with the betting industry on behalf of the esports industry; we do not work for the betting industry. Accordingly, this dynamic serves only to promote competitive integrity and legitimacy of esports competitions.

Contrary to some assertions, the betting industry does not use us to avoid making legitimate payouts. The primary benefit for betting stakeholders which engage with us is access to what our Suspicious and Unusual Betting Alert Network sees (a network which they also contribute data to).

Importantly, some players are asserting that their betting activity on the game that they play professionally was “innocent”. With respect, that is either naive or disingenuous. No traditional sport allows its professional participants to bet on the sport they play for a living. In the cases ESIC has dealt with, the players against whom we have taken action have bet on the game, league, tournament or match in which they have participated. There is no scenario in which this is acceptable and we will continue to prosecute players who do so where we have jurisdiction. At the highest level of any esports game, the players all know each other, have played with and against each other and have both inside information and the potential to influence each other in a way that gives them an unfair advantage in betting markets and undermines the perception of competitive integrity. In many countries it is also illegal or criminal. Consequently, we are unapologetic about our rule prohibiting betting on the game they play professionally or semi-professionally. This is for the protection of the esports ecosystem and the players in particular. It is not a service to the betting industry but a service to the esports industry broadly in the interest of youth protection, competitive integrity and commercial longevity.”

Conclusion

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Individuals attempting to propagate the narrative that ESIC works for the betting industry either have their own adverse agenda or are naïve about the realities of betting and the relationship between esports and betting on esports.

ESIC accepts that the existence of betting in esports is a contentious matter for some people and that they would rather it didn’t exist, but that is not an excuse to ignore the challenges posed by its existence. Any extension of opposition to betting in esports which operates to prohibit or hamper ESIC from effectively engaging with and mitigating the issue of match-fixing through sourcing data from Anti-Corruption Supporters, however, should be entirely discouraged and expelled from the industry. The stark reality is that match-fixing poses a real and demonstrable threat to the youth, competitive integrity, and commercial viability of the esports industry globally. Accordingly, ESIC implores all stakeholders Interested in the common good of esports to work together to combat such threats. Indeed, that includes, of necessity, close cooperation, via ESIC, between the esports ecosystem and the esports betting industry.

 

NOTE: THIS STATEMENT DOES NOT CONSTITUTE THE INTENDED RELEASE RELATING TO THE AU CS:GO INVESTIGATION. A SEPARATE RELEASE WILL BE MADE RELATING TO THAT INVESTIGATION IN DUE COURSE.

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eSports

IESF Concludes 16th Ordinary General Meeting in Riyadh

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The International Esports Federation (IESF) held its 16th Ordinary General Meeting (OGM) on November 18, bringing together over 150 delegates from the member federations in Riyadh, Saudi Arabia.

Before the official start of the assembly, IESF welcomed representatives from the Saudi Olympic & Paralympic Committee (SOPC) and the Esports World Cup Foundation (EWCF). Abdulaziz Baeshin, CEO of SOPC presented Saudi Arabia’s progress in Esports and sports development and their vision moving forward. Frank Weber, Director of Corporate Marketing at EWCF discussed the success of the EWCF and highlight upcoming plans for the future.

In his opening speech, IESF President HRH Prince Faisal bin Bandar bin Sultan Al Saud expressed gratitude for the number of delegates who attended the assembly. He reflected on the federation’s success and achievements over the past year, the key areas for improvement, and the necessity of continued close collaboration among members.

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The first session of the assembly continued with reviewing motions submitted by the members and voting on their acceptance or rejection. The members also voted to grant Full Membership status to Canada, Germany, Latvia, and Malta.

The second session of the OGM was dedicated to electing key positions within the IESF Board and committees. The results are:

  • Board Member: Mr. Samart Benjamin Assarasakorn

  • Treasurer: Mr. Daniel Wen Jun Loy

Membership Committee Members:

  • Mr. Soufiane El Filali

  • Mr. Jaroslav Melishek

Audit, Risk, and Governance Committee:

  • Chair: Mr. Tomas Gabris

  • Members: Mr. Jacopo Ierussi and Mr. Stevan Nenad Rosic

Regulatory Committee Chair:

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  • Mr. Ido Orel Brosh

In his concluding statement, IESF General Secretary Boban Totovski congratulated the assembly on a productive and democratic meeting. He expressed his appreciation for the valuable insights shared by members and their dedication to the growth of the IESF.

“This year’s assembly demonstrated the strength of our community and the shared vision that drives IESF forward. I thank everyone for their contributions to a democratic and smooth process, and I look forward to welcoming more member federations to our family next year and even greater success” said Totovski.

The OGM 2024 in Riyadh was another step forward in IESF’s mission to unite the Esports world under a shared vision. With the growing number of national federations, the IESF continues to cement its role as the largest Esports family.

The post IESF Concludes 16th Ordinary General Meeting in Riyadh appeared first on European Gaming Industry News.

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Chad Kinlay Chief Marketing Officer TrafficGuard

Influencers, Content and eSports: Unleashing the Power of Dynamic Strategies in the eSports Ecosystem

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The sports betting industry is undergoing significant growth worldwide with restrictions loosening and new markets emerging. New opportunities create fierce competition among sportsbooks, and this has led to them devising increasingly expensive and aggressive advertising campaigns.

Public figures and influencers have become a popular go-to for sportsbooks promotions, such as Michael Jordan partnering with DraftKings or Jamie Foxx with BetMGM. Big names are costly, and sportsbooks haven’t realised the ad spend used on these campaigns is going to waste. Without the right precautions in place, up to 22% of ad spend is lost to fraud according to Juniper Research.

The big budgets behind high-profile brand campaigns need to translate into real user engagement. To achieve this, sportsbooks must ensure their digital channels are optimised to capture the surge in interest these campaigns generate. Without proper management, this potential can be lost to inefficiencies like invalid traffic, diluting the impact of their investments.

 

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Ad Budgets Going to Waste

In today’s competitive landscape, sportsbooks need to make every click count. In 2023 alone, The American Gaming Association estimated that over $1.9 billion was spent on advertising campaigns in the US. With such a large amount of spend in play, it’s crucial that sportsbooks see as big a Return on Advertising Spend (ROAS) as possible.

Pay-Per-Click (PPC) campaigns are vital for sportsbook growth but can be disrupted by invalid traffic (IVT). IVT includes both malicious activity, like fraudulent bots, and unintentional actions, such as users repeatedly clicking on ads without intent to convert. These interactions inflate impressions and skew campaign performance data, leading to higher customer acquisition costs (CACs) and inefficient allocation of ad spend. Effectively managing IVT ensures that ad budgets drive genuine engagement and measurable growth.

Investing into influencers and celebrities also forces sportsbooks to bid on brand keywords to prevent their competitors stealing potential users searching for them. Up to 29% of PPC budgets are spent on this bidding according to Wordstream. As competition for brand keywords increases, PPC budgets are depleted without generating any new net revenue.

As campaigns become more expensive than ever, sportsbooks can’t afford to let profits fall to ad fraud. Instead of cutting budgets, sportsbooks should focus on analysing their campaign strategy.

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Problematic Navigational Traffic

Navigational traffic is also presenting a significant challenge to sportsbooks alongside ad fraud. Navigational traffic refers to existing customers clicking on branded keywords to log into their accounts. While this seems convenient and harmless enough, this behaviour drastically inflates CACs. Like ad fraud, this can skew the effectiveness of PPC campaigns. By utilising paid search results instead of organic links to navigate to the site, costs are driven up without contributing to new user acquisition.

In addition to the challenges posed by navigational traffic and ad fraud, the competitive landscape for first-time depositors intensifies the need for strategic bidding on Google search. Brands investing heavily in influencers or sponsorships of major sporting events to generate awareness and drive potential users to search for them. However, without securing top placements in paid search results, these prospective customers may be intercepted by competitors before reaching the organic search listings. This creates a critical juncture where the effectiveness of a brand campaign hinges on converting that intent-driven traffic into first-time depositors, ensuring marketing spend achieves its goal of meaningful user acquisition.

First-time depositors are a critical metric for sportsbooks, and this issue directly impacts the cost efficiency of acquiring them. High CACs make marketing budgets less effective, reducing overall ROI.

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Shoring Up Your Defences

Before launching costly ad campaigns, sportsbooks should adopt a multi-faceted approach to address ad fraud. IVT typically goes unnoticed, so to prevent this sportsbooks should monitor and analyse their campaign traffic for any suspicious activity. It is possible to identify IVT by looking out for signs such as irregular spikes in traffic from unknown locations or high pageviews. Fraudulent traffic can then by highlighted and removed.

The advancement of technology has made ad fraud more difficult to identify, and legacy fraud tools fail to detect IVT. They don’t analyse traffic at the impression level or consider the context of the business advertising. Sportsbooks can leverage ad-verification platforms to compensate for this. This allows sportsbooks to analyse and report suspicious traffic in real-time. Fraud can then be blocked before it has a chance to harm budgets.

Sportsbooks can also deploy tactics to reduce the impact of navigational traffic on CACs. Methods include encouraging existing customers to use mobile apps or direct bookmarks to log into their accounts instead of paid search campaigns. This decreases their reliance on PPC campaigns for navigation and protects budgets.

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Keeping Profits in Sportsbooks’ Hands

Influencer and celebrity campaigns have proven to be a popular and useful tool in reeling new users and profits. However, if sportsbooks don’t have the essential precautions in place, they risk losing these profits to advertising fraud.

To make the most of their advertising efforts, sportsbooks need to prioritise their traffic. Implementing sophisticated tools to analyse traffic and filter out fraud will allow sportsbooks to protect their interests and focus on driving future growth. This way, they can secure their position in an increasingly competitive landscape.

 

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Written by: Chad Kinlay, Chief Marketing Officer, TrafficGuard

A driven, open-minded, creative senior marketer with a strong sense of dedication and commitment. With over 15 years of progressive international experience in marketing and communications management, Kinlay has a credible history of commercial success.

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8Bit Creatives partners with NODWIN Gaming as the exclusive talent partner for DreamHack India

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8Bit Creatives, India’s leading esports consulting and talent management agency, has announced its partnership with NODWIN Gaming, a leader in new-age youth entertainment, gaming, and esports, as the exclusive Talent Partner for DreamHack India 2024.

With this partnership, 8Bit Creatives will leverage its significant reach in the Indian gaming, esports and youth communities through its prominent and talented roster of creators. These creators will create content leading up to the festival and also host meet-and-greet sessions.

India’s biggest gaming festival, DreamHack India, is set to take place from 15th to 17th November at the Hitex Exhibition Centre in Hyderabad, marking its fifth edition. For half a decade, the India edition of the global festival has become one of the most anticipated events of the Indian gaming ecosystem. Bringing together a plethora of events, including esports tournaments, BYOD (Bring Your Own Device) events, cosplay competitions, music concerts, and stand-up comedy, DreamHack India is the celebration of gaming, esports, pop-culture, and entertainment.

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8Bit Creatives, CEO and founder Animesh Agarwal said “DreamHack India is one of the most prominent events in the Indian gaming and esports calendar and we’re proud to be the exclusive talent partners for it. This is further recognition of 8Bit Creatives’ ability to meaningfully engage the gaming and youth audiences across the country. Our belief in working with the right creators who create experiences that resonate with the youth audiences distinguishes our offerings and we can’t wait to share what we have in store for DreamHack India 2024 with our audiences!”

This is not the first time that 8Bit Creatives will partner with DreamHack India. The organisation was also the talent partner for the event in 2022.

Commenting on the partnership, NODWIN Gaming, Co-founder and MD Akshat Rathee said “Our vision at NODWIN Gaming is to create unforgettable experiences for the youth, and DreamHack has proven to be the ultimate platform to realise that vision, bringing together gaming, entertainment, and community in an immersive celebration. We’re thrilled to have 8Bit Creatives as our exclusive Talent Partner for DreamHack India 2024. It’s especially exciting to welcome iconic creators like Mortal, who joined us in our very first edition, back for this landmark fifth year, alongside fan favourites like Snax, Kaashvi, Thug, and Payal. These creators bring a unique energy that connects deeply with our fans and elevates every moment. Their presence underscores our commitment to crafting electrifying experiences year after year, building on the momentum of events like BGMS and past DreamHack editions. Together with 8Bit and this powerhouse lineup, we’re setting the stage for an unforgettable event that will bring fans and creators closer than ever before!”

8Bit Creatives’s content and esports division S8UL became the only organisation in the year to win ‘Content Group of the Year’ award for the third consecutive year at the Esports Awards 2024. Additionally, they are the only organisation from India to ever win an Esports Award in any category. Earlier this year, gaming content creators from 8Bit Creatives including Naman Mathur, Payal Dhare and Animesh “Thug” Agarwal were invited for a meet and greet session with the honourable Prime Minister Shri Narendra Modi.

The organisation has been at the forefront of India’s gaming and content ecosystem with its extensive range of services, including talent management, campaign curation and execution, brand activations and more.

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