The rapid rise of esports as a serious competitive sport has been unprecedented. Despite its relatively niche status, esports has gained immense popularity, with video gaming tournaments remaining unfamiliar to a significant portion of the population. However, the undeniable truth is that esports boasts an enormous fan base surpassing traditional measures.
In 2019, the legendary League of Legends World Championship reached a peak viewership of 44 million, while the men’s final at Wimbledon only managed to attract 9 million viewers. The distinctive characteristics of esports make it more challenging to regulate, especially regarding betting and gambling.
The convergence of these two giants has revolutionized the entertainment industry and opened up numerous investment opportunities for individuals, gamers, and enthusiasts alike. The rapid expansion of Esports’ impact within the iGaming sector signifies a significant shift in our perception and engagement with digital entertainment, ushering in a fresh era of captivating and engaging experiences.
A Perfect Marriage between esports and Casinos
The esports betting market, worth billions, presents a significant opportunity for casino and sports betting sites to generate substantial profits. It is no wonder that numerous new online casinos have integrated esports betting into their offerings, and some platforms are exclusively dedicated to this type of betting. Nevertheless, the betting industry faces several challenges that must be met to fully exploit the potential of esports betting.
Moreover, the introduction of live betting and streaming has dramatically enhanced the betting experience, allowing bettors to follow their favorite sports titles such as Fortnite, League of Legends (LOL), CSGO, PUBG, Dota2, and Valorant in real time playing at online casinos. Additionally, the incorporation of blockchain technology and cryptocurrencies, along with the partnerships between esports betting operators and esports teams, are playing a crucial role in shaping the market’s growth and potential for future expansion.
Why esports are so Intriguing
The allure of esports for casinos and sportsbooks stems from various reasons. Primarily, they draw in a younger clientele. Research data reveals that most online gamblers are aged 35 or older, whereas the average age of esports fans is approximately ten years younger. As a result, casinos need to adapt their long-term strategies to cater to the preferences of the next generation.
The resilience of esports betting has been a game-changer. In a year marred by the disastrous impact of the pandemic on traditional sports markets, esports witnessed a significant boost in its audience. Lockdown tournaments, particularly those featuring sports games like FIFA, became a magnet for new viewers who sought solace in virtual competitions while live events were put on hold. As a result, the betting activity surrounding these tournaments experienced a remarkable surge. In the UK, the gross gambling yield from esports leaped by an impressive 124% between April and May 2020. While traditional sports betting faced a downturn, esports betting emerged as a valuable revenue stream for online gambling sites during this period of uncertainty.
The Integration between Casinos and esports still a Work in Progress
The sports drought during the pandemic led to the emergence of popular events like the Virtual Grand Prix. Nevertheless, the monetized esports industry primarily revolves around traditional video games such as CS:GO and League of Legends. Bookmakers encounter a significant obstacle in determining the odds for matches and tournaments in this relatively new realm. Bettors perceive websites that solely focus on esports betting as more trustworthy. It is essential to recognize that virtual versions of real-world sports follow different patterns than the familiar leagues and teams that spectators are accustomed to.
The characterization of esports betting in law presents a potential obstacle. Policymakers have encountered challenges formulating legislation to oversee and regulate esports activities effectively. Notably, there is a prevailing argument in the UK, unlike American online casinos, that emphasizes the fundamental differences between esports and traditional physical sports events, warranting distinct treatment.
The argument against esports being purely skill-based games stems from the existence of a random number generator (RNG) in certain events. Consequently, there are grounds to classify the tournaments themselves as a form of gambling, even without the inclusion of betting on the outcomes.
If this reasoning gains momentum, it raises doubts about the future of esports in the UK. Regulating the sector as a gambling activity would introduce considerable complications and eliminate the potential for a betting market. With an upcoming review of gambling laws in the UK, this could have significant ramifications for betting and the entire esports industry.
Why the Future of esports lies with the Youth
At this juncture, numerous pressing inquiries revolve around esports and its impact on younger audiences. Given the inherent attraction of video games, and consequently, any gambling linked to them, to a predominantly youthful demographic, advertising campaigns are strategically aimed at capturing the attention of this specific age group, whether by chance or intention. The potential consequences of esports betting in fostering a new generation of compulsive or problem gamblers among the younger population have sparked considerable debate.
The connection between esports and young gamblers is still not clearly defined. Although there has been a significant surge in the involvement of young people in gambling, it does not precisely indicate a direct association with esports. Studies indicate that individuals under the age of 24 carry out the majority of social media interactions with esports betting accounts.
Another concern revolves around the content of video games themselves. Currently, there is a spotlight on the use of loot boxes in games and whether they can be classified as gambling or if they encourage players to pursue other forms of gambling. Loot boxes have the potential to activate the same neural reward centers as more explicit forms of gambling, such as slot machines.
Conclusively
The esports industry is projected to have a market volume of $3.2 billion by 2027. These statistics indicate the significant impact of esports on the revenues of betting platforms, as it captures a considerable share of what was previously exclusive to traditional sports.