The challenge with any new phenomenon is the temptation to explain and describe it through simplification, often leading to broad generalisations and confusion. Samuel L. Jackson’s chat with KTLA entertainment reporter Sam Rubin in 2014 comes to mind. When Rubin mistook Jackson for Laurence Fishburne, Jackson retorted, “We may be all black and famous, but we don’t all look alike.”
Esports suffers something similar: if it’s an electronic game, if it happens in an electronic game? Then it’s esports. But is it?
Loot boxes
Loot boxes have attracted the attention of many governments across the globe for one particular reason: they’re often portrayed as a dangerous gateway to gambling for children. Belgium’s Gaming Commission has certainly made that point clear.
So what exactly are loot boxes? Well, as the term implies, they’re boxes with stuff in them. In this case, the boxes appear in-game and the virtual stuff inside can range from cosmetic items (elements that do not provide any boosts to the player’s in-game abilities) to things that will help make you more powerful in the game. Gamers call the latter “pay-to-win”.
Many popular games, several of which are esports games, are free to download and play, but many of them still gross millions a week. Part of that revenue comes from selling loot boxes in the game. In other words, loot boxes are a mechanism for monetisation in both free and paid-for games.
In some games, players are rewarded with loot boxes simply for being frequent players or for achieving goals, but boxes may also be bought by those less inclined to put in the hard graft through hours of play (what gamers call “grinding”).
Loot boxes are operated in various ways. In some games, you buy boxes; in others, you are given the boxes but you buy keys to open them; then in others still, you are given boxes but it takes time to open them (though you can speed up the process by paying); and everything in between. Almost always, payment is done through an in-game currency instead of regular iat currency.
Since players won’t know what’s in the boxes until they open them, pundits will claim, therein lies the similarity to gambling.
But wait a minute. The loot box mechanism is really no different from the prize in a pack of collector cards or in a Kinder Surprise – you buy the item but don’t know what’s inside until you open it.
Similar to loot boxes, these real-world equivalents will contain items that are pedestrian in value and items that are extremely exclusive to the appreciating collector. And the similarities don’t end there: neither the virtual nor the real publish the buyer’s odds for what they will get inside.
So why are loot boxes now considered “dangerous” and “like gambling” for children when similar real-world equivalents have been on sale for decades? That’s a discussion for another article.
No current esports game involves a player’s “skill” in opening loot boxes. No current esports game allows the content of loot boxes to affect a tournament player’s performance, even in those games where a “pay-to-win” element exists. Tournament modes exist that place all athletes on an even footing.
So, while there may be valid concerns, from gambling to consumer protection, loot boxes – not esports.
Skin betting
A hot 2017 topic, skin-betting is still something that gets associated with esports, especially when it comes to calls for regulation. A close relative to loot boxes, by virtue that loot boxes often contain “skins,” skins is a loose term to describe in-game cosmetic items that wrap around in-game objects to change their appearance.
Some games feature skins that can be traded and sold between players, with rare skins going for big sums of real cash.
While often explicitly prohibited by game developers, due to an implied value being associated with skins by the existence of a market, they can, and have been, used as a form of virtual currency. Indeed, until a crackdown in 2017, there were many unregulated online casinos that accepted skins as currency for wagering.
Skins are basically a form of virtual currency, then, but while some may use them as a currency to bet on the outcome of esports events, skins – not esports.
Skill-based slots/EGMs
Apart from the usual suspects, a new breed of game and machine developer is bringing new options to the casino floor. In an effort to draw in a younger crowd that prefers games of skill to chancebased slots, these new games from the likes of GameCo and Gamblit combine elements of skill-based electronic games with the rapid spins-per-hour revenue potential of traditional slots.
Gaming regulators in both New Jersey and Nevada have granted approvals for many of these cutting-edge machines on their respective licensed floors, and clearly the companies behind them are looking to perfect their craft and bring these machines to more jurisdictions.
Many of these games draw upon game design concepts from electronic games, but no makers currently draw or license any game that is played as an esport. However, while skill-based slots and EGMs target a similar player and audience demographic as esports, skill-based slots and EGMs – not esports.
Arcade 2.0/PvP and Tournament Gaming Lounges
These have begun appearing in Las Vegas resorts and beyond. They range from ’80s arcades on steroids to well-equipped electronic gaming lounges that offer tournaments featuring esports games with the opportunity to win prizes and money.
While the former may bring customers nostalgia in the form of Pac-Man or a pinball tournament, the latter is what is interesting.
Venues including the now rebranded Esports at the Downtown Grand and Level Up at the MGM Grand offer visitors the opportunity to enter competitive electronic game tournaments for prizes, with some of the games available being esports games.
These may evolve into something that often takes place after some esports events. Known as “Salty Suites”, the practice sees players compete against each other for a friendly wager. Side bets between audience members has also been known to occur. Integrity and security are both important factors here, and there is a strong case for these venues to have regulatory and consumer protection and oversight.
Arcade 2.0, then, while it may be cool to compete for cash and prizes on your favourite arcade game – not esports.
However, these new tournament venues have the potential to become the physical sports equivalent of putting money on your basketball game down at the courts. With that in mind, PvP and Tournament Gaming Lounges – too close to call.
So, what is esports?
Esports, at its most basic, is simply electronic sports. As with physical sports, some have more tournament structure than others; similarly, all esports games are competitive electronic games, but not all competitive electronic games are esports games.
Which games qualify for the esports moniker is a trickier question best left for another article, but basically the name is reserved for games that have a strong methodical skill component, well defined tournament rules, organisation and structure.
Oh, and while we’ve covered some ground on what isn’t esports, writing an article for this magazine – not esports.
Hai Ng is iGaming Business North America’s fantasy and esports editor. He is co-founder of Neomancer, a unique technology strategy and management firm, and has over three decades of experience in the technology sector, with a decade in igaming. He tweets on matters of igaming as @HaiOnGaming