KeSPA Advocates Esports Integration into Legal Betting

KeSPA has proposed integrating esports into South Korea's state-run Sports Toto betting platform to generate dedicated funding for professional leagues, player development, and grassroots programs. The association argues that current reliance on publishers for over 90% of operating costs is unsustainable, and regulated betting revenue could provide a stable alternative. This move also includes recommendations for establishing a dedicated integrity body, "K-ESIC," to monitor participants and enhance education on match-fixing risks.

Key Takeaways

• Regulated esports betting revenue could reduce financial dependence on game publishers and support long-term ecosystem growth in one of Asia's largest esports markets.
• The proposal includes creating "K-ESIC" as a prerequisite for betting integration and emphasizing proactive integrity monitoring to protect the betting market's credibility.
• Broader reforms target tax incentives, a structured league pyramid, and better utilization of esports infrastructure to attract events and sponsors.

KeSPA's detailed white paper highlights structural challenges in Korean esports, where developers currently bear the majority of the costs for leagues such as the LCK. By channeling a portion of Sports Toto proceeds—South Korea's only legal sports betting operator—into esports, the association aims to fund professional structures, youth academies, and regional competitions without overburdening publishers.

The push comes amid ongoing discussions on esports sustainability in regulated markets. South Korea maintains strict gambling controls, with Sports Toto limited to select sports; expanding to esports would require legislative approval and robust safeguards. KeSPA positions this as essential for competitiveness, proposing tax reforms on esports revenues and deductions for in-game item contributions to support the scene.

Integrity remains central: the report stresses the need for "K-ESIC" to educate players, teams, and officials on betting-related risks, monitor suspicious activities, and align with global standards from bodies like ESIC. This could set a precedent for other Asian markets considering regulated esports wagering, where integrity enforcement is critical to operator confidence and bettor trust.

Industry observers note potential benefits for global operators eyeing Asian expansion, as formalized betting could boost liquidity and data for odds-setting in titles like League of Legends. However, challenges include navigating Korea's conservative stance on gambling and ensuring safeguards against match-fixing, a persistent issue in esports.

If adopted, this could mark a pivotal shift toward self-sustaining esports ecosystems through regulated betting channels, offering a model for other regions balancing growth with integrity.

Sources: Sheep Esports