The Growth In Esports Betting: How it Changes the Online Gambling Market
Ever since online gaming appeared, the interest in gaming competitions started growing. The idea of betting on such competitions arose almost immediately, and it has taken over the world. Nowadays, interest in eSports and eSports betting cannot be any bigger. eSports betting is one of the biggest trends in the world of wagering, and it was a betting type that peaked in 2020 due to the COVID-19 crisis and lack of sports events.
eSport Industry Growth
Still, the eSport fanbase is not the only thing that makes this betting industry grow. In 2019 eSports betting industry was worth around $1 billion. This gambling industry’s potential was recognized immediately, and the experts calculated that this number might double in the next couple of years. However, the initial analysis was wrong, as newer research shows that the market’s worth can go way beyond that by 2025. According to the Market Insight Reports global eSport betting market will have a CAGR of 13.1%% in the next four years. In other words, the market’s worth is expected to reach $13.05 billion in this period.
Rapid Fanbase Expansion
As the industry keeps growing exponentially, gaming and eSports betting have become one of the favorite types of entertainment in the world. Since the fan base is expanding, the eSports industry is increasing as well. From 2018 to 2020, the number of eSports fans has grown from 170 million to over 250 million.
During the COVID-19 outbreak in 2020, this industry has recorded millions of new viewers and users. As a matter of fact, according to the UK Gambling Commission, the growth rate increased by 2992% over a single year. Some of the top gaming companies active on the market are:
- Esports Technologies
- Corsair Gaming, Inc.
- Elys Game Technology
- DraftKings Inc.
- Enthusiast Gaming Holdings Inc.
eSports in Online Betting Sites and Casinos
While some online gambling types were suffering the consequences during 2020 and 2021, the eSport industry was and still is booming. Even if eSport betting is still not as popular among the players and big as sports betting, this betting market has helped many online brands survive the crisis. Moreover, since this was one of the few betting markets available during the lockdowns, many wagering enthusiasts turned to eSports.
Casino brands offering eSports betting were able to overcome the financial difficulties caused by the COVID-19 outbreak easier. However, the unfortunate events are not the only “culprit” for the esports industry’s popularity. Younger generation interest in gaming, eSport competing, and eSports betting is becoming mainstream. It is also shaping the further development of the entire online gambling industry. The constantly growing demand for new, entertaining, and high-quality games also directs the gambling industry’s growth. Some even believe that artificial intelligence will soon find its place in the eSport industry and gambling industry.
As many brands recognize the potential of this gambling market, more and more online casinos and jurisdictions are starting to include eSport betting as one of the newest gambling trends.
Image source: Pixabay
New Technologies on the Horizon
Many UK and US iGaming companies are investing in eSport technology development. New technologies and gambling features, including Boku Payments https://casinosters.com/boku/, easier ways to make deposits, and more are being introduced to online casinos. Esports Technologies, an eSports wagering provider, announced patent license agreements in order to improve the cash-out features in their eSport betting products. Esports Technologies’ partnership with Colossus is set to produce the top cash-out technology for free-to-play and real-money platforms. Combining their two technologies, these brands are hoping to unlock the maximum value and target it towards the end-user.
Many casino brands are trying to stay relevant in the sea of competition by strengthening their content and technological capabilities. They incorporate new and different products as a part of their product and service offering, and one of them is definitely eSports.
Since the focus is currently on switching to the online market, many new Esports tournaments have emerged. Organizing such events is much easier and less expensive than organizing a real-life eSport event. Popular online games such as PUBG Mobile, CS:GO, Fortnite, Fifa 21, LoL, PES 2021, Overwatch, Apex Legends, and more have taken over the betting market. These are responsible for the creation of some of the most popular eSport tournaments whose prize pools have millions of dollars:
- Fortnite World Cup
- The International
- PGI.S
- LoL World Championship
Conclusion
The rapid growth of the eSports industry has made some incredible changes to the whole online gambling market. No one can claim with precision how well the market’s growth developed in the future, but we all know that this is not the peak of the eSport industry. Gaming and gambling fans are yet to witness eSports evolution.