Beyond the Game: Policy Priorities for Responsible Esports Betting
Introduction
Betting has long been associated with sporting activities and has found a growing presence in online gaming and esports globally. As the esports industry continues to expand, Statista has projected that it will reach a market value of $5.9 billion by 2029. As such, associated markets have also seen significant growth. In 2024, this segment accounted for an estimated $2.5 billion globally. While such engagement avenues are popular among international audiences, they also bring attention to concerns around regulation, integrity, and user protection. As esports builds its credibility and reach, especially among younger demographics, these aspects become increasingly important to address in policy and practice.
What Does Esports Betting Involve?
Much like traditional sports, esports engagement in some regions includes the practice of wagering on teams, players, or match outcomes. But it is inherently more complex. The accurate valuation of odds in online gaming and esports can be complicated by frequently updated game titles, changing teams, and shifting updates to game mechanics (called metas- most effective strategies). Bets can be placed using real money, virtual items like skins (digital avatars), or increasingly, cryptocurrency.
Esports and Wagering: Emerging Issues and Implications
- Legal Grey Areas: While countries like South Korea and some USA states have dedicated regulations for esports betting and licensed bookmaking, most do not. This creates legal grey areas for betting service providers to access unregulated markets, increasing the risk of fraud, money laundering, and exploitation of bettors in those regions.
- The Skill v/s Chance Dilemma: Most gambling laws across the world regulate betting based on the distinction between ‘games of skill’ and ‘games of chance’. Betting on the latter is typically illegal, since winning depends on chance. But the definitions of ‘skill’ and ‘chance’ may vary by jurisdiction. Also, esports betting often blurs into gambling. Outcomes may depend on player skill, but in-game economies like skin betting and unpredictable gameplay introduce elements of chance, complicating regulation and making enforcement difficult.
- Underage Gambling and Addiction Risks: Players are often minors and are exposed to the gambling ecosystem due to gamified betting through reward systems like loot boxes. These often mimic the mechanics of betting, normalising gambling behaviours among young users before they fully understand the risks. This can lead to the development of addictive behaviours.
- Match-Fixing and Loss of Integrity: Esports are particularly susceptible to match-fixing because of weak regulation, financial pressures, and the anonymity of online betting. Instances like the Dota 2 Southeast Asia Scandals (2023) and Valorant match-fixing in North America (2021) can jeopardise audience trust and sponsorships. This affects the trustworthiness of minor tournaments, where talent is discovered.
- Cybersecurity and Data Risks: Esports betting apps collect sensitive user data, making them an attractive target for cybercrime. Bettors are susceptible to identity theft, financial fraud, and data breaches, especially on unlicensed platforms.
Way Forward
To strengthen trust, ensure user safety, and protect privacy within the esports ecosystem, responsible management of betting practices can be achieved through targeted interventions focused on:
- National-Level Regulations: Countries like India have a large online gaming and esports market. It will need to create a regulatory authority along the lines of the UK’s Gambling Commission and update its gambling laws to protect consumers.
- Protection of Minors: Setting guardrails such as age verification, responsible advertising, anti-fraud mechanisms, self-exclusion tools, and spending caps can help to keep a check on gambling by minors.
- Harmonizing Global Standards: Since esports is inherently global, aligning core regulatory principles across jurisdictions (such as through multi-country agreements or voluntary industry codes of conduct) can help create consistency while avoiding overregulation.
- Co-Regulation: Governments, esports organisers, betting platforms, and player associations should work closely to design effective, well-informed policies. This can help uphold the interests of all stakeholders in the industry.
Conclusion
Betting in esports is inevitable. But the industry faces a double dilemma- overregulating on the one hand, or letting gambling go unchecked, on the other. Both can be detrimental to its growth. This is why there is a need for industry actors like policymakers, platforms and organisers to work together to harmonise legal inconsistencies, protect vulnerable users and invest in forming data security. Forming industry-wide ethics boards, promoting regional regulatory dialogue, and instating transparency measures for betting operators can be a step in this direction to ensure that esports evolves into a mature, trusted global industry.
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Introduction
The Data Protection Data Privacy Act 2023 is the most essential step towards protecting, prioritising, and promoting the users’ privacy and data protection. The Act is designed to prioritize user consent in data processing while assuring uninterrupted services like online shopping, intermediaries, etc. The Act specifies that once a user provides consent to the following intermediary platforms, the platforms can process the data until the user withdraws the rights of it. This policy assures that the user has the entire control over their data and is accountable for its usage.
A keen Outlook
The Following Act also provides highlights for user-specific purpose, which is limited to data processing. This step prevents the misuse of data and also ensures that the processed data is being for the purpose for which it was obtained at the initial stage from the user.
- Data Fudiary and Processing of Online Shopping Platforms: The Act Emphasises More on Users’ Consent. Once provided, the Data Fudiary can constantly process the data until it is specifically withdrawn by the Data Principal.
- Detailed Analysis
- Consent as a Foundation: The Act places the user's consent as a backbone to the data processing. It sets clear boundaries for data processing. It can be Collecting, Processing, and Storing, and must comply with users’ consent before being used.
- Uninterrupted Data processing: With the given user consent, the intermediaries are not time-restrained. As long as the user does not obligate their consent, the process will be ongoing.
- Consent and Order Fulfillment: Consent, once provided, encloses all the activities related to the specific purpose for which it was meant to the data it was given for subsequent actions such as order fulfilment.
- Detailed Analysis
- Purpose-Limited Consent: The consent given is purpose-limited. The platform cannot misuse the obtained data for its personal use.
- Seamless User Experience: By ensuring that the user consent covers the full transactions, spared from the unwanted annoyance of repeated consent requests from the actual ongoing activities.
- Data Retention and Rub Out on Online Platforms: Platforms must ensure data minimisation post its utilisation period. This extends to any kind of third-party processors they might take on.
- Detailed Analysis
- Minimization and Security Assurance: By compulsory data removal on post ultization,This step helps to reduce the volume of data platforms hold, which leads to minimizing the risk to data.
- Third-Party Accountability, User Privacy Protection.
Influence from Global frameworks
The impactful changes based on global trends and similar legislation( European Union’s GDPR) here are some fruitful changes in intermediaries and social media platforms experienced after the implementation of the DPDP Act 2023.
- Solidified Consent Mechanism: Platforms and intermediatries need to ensure the users’ consent is categorically given, and informed, and should be specific to which the data is obtained. This step may lead to user-friendly consent forms activities and prompts.
- Data Minimizations: Platforms that tend to need to collect the only data necessary for the specific purpose mentioned and not retain information beyond its utility.
- Transparency and Accountability: Data collecting Platforms need to ensure transparency in data collecting, data processing, and sharing practices. This involves more detailed policy and regular audits.
- Data Portability: Users have the right to request for a copy of their own data used in format, allowing them to switch platforms effectively.
- Right to Obligation: Users can have the request right to deletion of their data, also referred to as the “Right to be forgotten”.
- Prescribed Reporting: Under circumstances of data breaches, intermediary platforms are required to report the issues and instability to the regulatory authorities within a specific timeline.
- Data Protection Authorities: Due to the increase in data breaches, Large platforms indeed appoint data protection officers, which are responsible for the right compliance with data protection guidelines.
- Disciplined Policies: Non-compliance might lead to a huge amount of fines, making it indispensable to invest in data protection measures.
- Third-Party Audits: Intermediaries have to undergo security audits by external auditors to ensure they are meeting the expeditions of the following compliances.
- Third-Party Information Sharing Restrictions: Sharing personal information and users’ data with third parties (such as advertisers) come with more detailed and disciplined guideline and user consent.
Conclusion
The Data Protection Data Privacy Act 2023 prioritises user consent, ensuring uninterrupted services and purpose-limited data processing. It aims to prevent data misuse, emphasising seamless user experiences and data minimisation. Drawing inspiration from global frameworks like the EU's GDPR, it introduces solidified consent mechanisms, transparency, and accountability. Users gain rights such as data portability and data deletion requests. Non-compliance results in significant fines. This legislation sets a new standard for user privacy and data protection, empowering users and holding platforms accountable. In an evolving digital landscape, it plays a crucial role in ensuring data security and responsible data handling.
References:
- https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf
- https://www.mondaq.com/india/privacy-protection/1355068/data-protection-law-in-india-analysis-of-dpdp-act-2023-for-businesses--part-i
- https://www.hindustantimes.com/technology/explained-indias-new-digital-personal-data-protection-framework-101691912775654.html
Introduction
The advent of Electronic Vehicles (EVs) represents a transformative leap towards a more sustainable and environmentally conscious transportation future by nations. However, as these vehicles become increasingly connected and reliant on advanced technological systems, a parallel concern emerges—data privacy. Integrating sophisticated technologies in EVs, such as GPS tracking, biometric authentication, and in-car connectivity, raises substantial questions about the collection, storage, and potential misuse of sensitive personal information. This intersection of automotive innovation and data privacy underscores the need for comprehensive solutions and regulatory frameworks to ensure that the benefits of electric vehicles are realised without compromising the privacy and security of their users.
Electronic vehicles primarily record three types of data;
- Driving behaviour and patterns: The e-vehicle records braking and driving patterns, including acceleration, speed, and swerve. Some vehicles even track air conditioning usage and airbag deployment to determine the point of failure in the event of a crash.
- Location data: The e-vehicles also track GPS systems to gauge the speed and direction of the vehicle.
- EV functions and use of telematic services: Monitoring of EV functions includes battery use management, battery charging history, battery deterioration, electrical system functions and software version information.
Data Privacy requirements of companies
Companies manufacturing e-vehicles are saddled with several data privacy requirements as concerns about consumer safety. Data collected by e-vehicles may be sensitive in nature. Location tracking is a key issue that has garnered attention. The constant recording of a driver's whereabouts can lead to the creation of detailed profiles, raising questions about the potential misuse or unauthorised access to this sensitive information. The risk of surveillance, stalking, or even theft of valuable personal data is a genuine concern for EV owners.
Moreover, integrating smart features, such as voice recognition, biometric authentication, and in-car personal assistants, adds another layer of complexity. These features require the collection and processing of personal data. If not handled securely, they may become vulnerable to hacking or unauthorised access, leading to identity theft or other malicious activities. Additionally, Smart charging systems offer convenience by allowing remote monitoring and control of charging, but they also gather extensive data. The geographical data collected during charging may raise concerns about location privacy.
Striking a delicate balance between leveraging this data for enhancing vehicle performance and user experience while safeguarding the privacy of EV owners is paramount. Transparent privacy policies, secure data storage practices, and stringent encryption protocols are essential components of a comprehensive approach to data protection. If a company is eyeing the international market or utilising cloud-based software with decentralised global data storage, it must also navigate international privacy and data protection laws. A prime example is the General Data Protection Regulation (GDPR), a globally recognised and stringent data protection law applicable to both European-based companies and international entities providing goods, services, or monitoring activities of residents within Europe.
Manufacturers of these vehicles are subjected to compliance with this comprehensive legal framework. Obligations on companies are levied by them being data fiduciaries; dual liability may also emanate since some data fiduciaries may also qualify as data processors. Special care must be taken when data is being transferred to third parties.
Further, compliance with consumer safety laws is also an important consideration. In India, the Consumer Protection Act of 2019 safeguards the rights of consumers, holding manufacturers, sellers, and service providers responsible for any harm resulting from faulty or defective products. This extends the Act's coverage to include manufacturers and sellers of internet and technology-based products. When read with the Digital Personal Data Protection Act of 2023 (DPDP Act), the Consumer Protection Act of 2019 takes on additional significance. The DPDP Act, focusing on the security of an individual's digital personal data, introduces provisions such as mandatory consent, purpose limitation, data minimisation, obligatory security measures by organisations, data localisation, and enforcing accountability and compliance. These provisions apply to information generated by and for consumers, offering a comprehensive framework for protecting digital personal data.
Conclusion
The intersection of e-vehicles and data privacy necessitates a careful and comprehensive approach to ensure the coexistence of automotive innovation and user security. As electric vehicles record intricate data related to driving behaviour, location, and telematic services, companies manufacturing these vehicles must navigate a complex landscape of data privacy requirements. The potential risks associated with location tracking, smart features, and the extensive data collected during charging underscore the importance of transparent privacy policies, secure data storage practices, and stringent encryption protocols. Moreover, as companies expand globally, compliance with international privacy laws like the GDPR becomes imperative. Balancing the enhancement of vehicle performance and user experience with the safeguarding of privacy is paramount. Manufacturers, deemed as data fiduciaries, must exercise diligence, especially when transferring data to third parties. Additionally, adherence to consumer safety laws, such as the Consumer Protection Act of 2019, further emphasises the need for a holistic and vigilant approach to ensure the responsible use of data in the evolving landscape of e-vehicles.
References
- https://digitalcommons.law.scu.edu/cgi/viewcontent.cgi?article=1556&context=chtlj
- https://cyberswitching.com/electric-car-charging-and-data-privacy/#:~:text=Smart%20charging%20systems%20provide%20convenience,in%20safeguarding%20EV%20user%20privacy
Introduction
In the age of social media, the news can spread like wildfire. A recent viral claim contained that police have started a nationwide scheme of free travel service for women at night. It stated that any woman who is alone and cannot find a vehicle to go home between 10 PM and 06 AM can contact the provided numbers and request a free vehicle. The viral message further contained the request to share and forward this information to everyone to get the women to know about the free vehicle service offered by police at night. However, upon fact check the claim was found to be misleading.
Social Impact of Misleading Information
The fact that such misleading information gets viral at a fast speed is because of its ability to impact and influence people through emotional resonance. Especially during a time when women's safety is a topic discussed in media sensationalism due to recently highlighted rape or sexual violence incidents, such fake viral claims often spark widespread public concern, causing emotional resonance to people and they unknowingly share or forward such messages in the spike of emotional and sensational appeal contained in such messages. The emotional nature of these viral texts often overrides scepticism, leading to immediate sharing without verification.
Such nature of viral messages often tends to bring people to protest, raise awareness and create support networks, but in spite of emotional resonance people get targeted by misinformation and become the unintended superspreaders of fake news fueled by emotional and social media-driven reactions. Women’s safety in society is a sensitive topic and when people discover such viral claims to be misleading and fake, it often hurts the sentiments of society leading to significant social impacts, including distrust in social media, unnecessary panic and confusion.
CyberPeace Policy Vertical Advisory for Social Media Users
- Think before Sharing: All netizens must practice caution while sharing anything and double-check its authenticity before sharing/forwarding or reposting it on your social media stories.
- Don't be unintended superspreaders of Misinformation: Misinformation with emotional resonance and widespread sharing by netizens can lead to them becoming "superspreaders of misinformation" and making it viral quickly. Hence you must avoid such unintended consequences by following the best practices of being vigilant and informed by reliable sources.
- Exercise vigilance and scepticism: It is important that netizens exercise vigilance and they build cognitive abilities to recognise the red flags of misleading information. You can do so by following the official communication channels, looking for any discrepancy in the content of susceptible information and double-checking its authenticity before sharing it with anyone.
- Verify the information from official sources: Follow the official communication channels of concerned authorities for any kind of information, circulars, notifications etc. In case of finding any piece of information to be susceptible or misleading, intimate it to the relevant authority and the fact-checking organizations.
- Stay in touch with expert organizations: Cybersecurity experts and civil society organisations possess the unique blend of large-scale impact potential and technical expertise. Netizens can stay updated about recent developments in the tech-policy sphere and learn about internet best practices, and measures to counter misinformation through methods such as prebunking, debunking and more.
Connect with CyberPeace
As an expert organisation, we have the ability to educate and empower huge numbers, along with the skills and policy acumen needed to be able to not just make people aware of the problem but also teach them how to solve it for themselves. At CyberPeace we regularly produce fact-check reports, blogs & advisories, and insights on prebunking & debunking measures and capacity-building programs with the aim of empowering netizens at the heart of our initiatives. CyberPeace has established the largest network of CyberPeace Corps volunteers globally. These volunteers play a crucial role in assisting victims, raising awareness, and promoting proactive measures.
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