For an event to be legally allowed to be bet on it must consist of the three following things:
Reward: Return on wager
It can be said that professional gaming meet all three of these criteria’s and should therefore be a legitimate events that can have bets placed on.
For any emerging industry, the facts that determine its viability or market potential tend to be who invests and how much. Yet when a growing industry is centered around competition, as is the case with eSports, investors and sponsors are a nice indication the industry is moving in the right direction.
However, the strongest indicator tends to be whether or not people gamble on it, and when you analyze the numerous sites set up to take bets on professional matches it’s clear gambling is well established within the gaming community.
In the United States, gambling of any kind is heavily regulated and in some states highly illegal. UMG Gaming, however, offers a platform in which gamers can take part in peer-to-peer wager matches in which money can be won.This skirts the Federal gambling laws by essentially falling under the category of state gambling laws, which varies widely by state. While there is a ton of gray area and loose legal wording, the overarching theme seems to be whether a state defines social gambling by chance or skill.
UMG Gaming run tournaments where many of the prizes for placing in the event come in the form of cash.. UMG tournaments allow users to turn credits into money purely on the fact that most states don’t consider betting on yourself in a skill-based competition a form of gambling. UMG describes it as follows: “Cash Out matches are completely legal and are not considered online gambling. This is because you are betting on your own skill in the game and not basing a bet on luck.”
For further information regarding UMG Gaming and their tournaments can be found at the following link, http://www.umggaming.com