Is Esports Betting the Future of Online Gambling – Esports Betting Online

League Of Legends Esports Betting

League Of Legends Esports Betting

The digital age has introduced the advent of numerous lucrative businesses, with esports arguably providing one of the best and most exciting examples.

esports is now worth more than an eye-popping staggering $1 billion worldwide.  Many sites have sprung up and now offer customers direct access to the best and most reputable online gambling websites available.

Since 2017, there has also been a significant increase in esports viewership around the globe, with the market mesmerized by double-digit growth and an audience of around 455 million by the end of 2019.

While online gambling has recently experienced a slight decline in its total gross gambling yield and continues to face a series of painful legislative impacts, esports participation and viewing figures continue to grow at exponential rates.

I’ll address this below while asking if betting on esports is the near-term future of online gambling?

Situation Report

While the annual growth rate of esports has fluctuated over the course of the last 4 years, it has never dipped under 13.8% over this period.

By the end of 2019, the total viewing audience had also grown from an impressive 385 million to 454 million, revealing annual market growth of 15.1% for that period.

This trend is expected to hold for the near-term too, with the esports marketplace expected to grow at a 9% compound annual growth rate between 2019 and 2023.

This will usher in a momentous uptick in the number of casual viewers, while the total audience combining the casual fan and the true enthusiasts will reach an impressive 557 million over the same period.

By the end of 2023, the global esports audience is expected to reach nearly 650 million, nearly doubling in size in only six years.

This dramatic and exponential growth has continued to have a dramatic impact on the industry. Forcing the gambling industry to take notice, leading to a dramatic increase in the level of interest and investment from various stakeholders and key players in the online gambling industry.

League Of Legends World Finals Audience

This has been spearheaded by a recent investment push involving a major London-based esports betting startup, and the same team behind daily fantasy football app Dribble.

More specifically, they have raised just over $2.5 million in funding from a number of strategic investors, with the gaming-focused venture firm Makers Fund at the head of this list.

However, unnamed founders and executives from iGaming brands including GVC and Betfair have also contributed significantly to the fund previously, bringing to the total investment in the 2016-founded company to an estimated $4.5 million.

In addition to the surging global audience, this increased investment is also being driven by the forecasts for sustained yearly growth, along with the fact that wagering on eports is expected to exceed a staggering $12 billion by the fourth quarter of 2020.

Gambling industry insiders have a great reason for keeping a finger on the pulse of the esports industry door. This market has amazing potential for online gambling and eports betting. In 2018, $7billion were wagered on esports and this industry continues to gain strength.

Sponsorship is also expected to increase exponentially over the course of the next four years, as the market becomes increasingly lucrative and inches ever closer towards the consumer mainstream markets.

Future of Esports

While the size of the market and the opportunity may be enormous, the long-term status and the positioning of the market remains relatively unclear.

For Example:
The nearly all of the online sports betting sites continue to view eports as just another vertical in an ever-growing market, despite the unique nature of this discipline and fact that viewers represent an entirely new customer base.

In this respect, eports betting entities are looking to entrench themselves as an entertainment platform, and one that combines live viewing and unique betting markets to offer an immersive experience.

This taps into one of the key trends that continues to underpin the virtual sports betting market, where a rising percentage of sports audiences wager in-play and on a more frequent basis.

For Example:
An estimated 97.4% of horse racing fans bet regularly while the corresponding number for boxing fans is estimated at 86.4%.

So, while market share remains fluid, it is also attempting to shape the future of the marketplace by combining real-time viewing and wagering in a single platform.

Only the Beginning

In this respect, start-ups are playing a critical role in helping to popularize eports across the globe, by ensuring that it has a unique niche and identifying ways of capitalizing on its dynamic nature and incredibly fast-paced action.

This, combined with the unique range of betting markets available through esports betting, will help platforms to acquire new audiences effectively and afford the discipline the showcase it rightfully deserves as it continues to grow.

CSGO And Overwatch Events

The latest development will also help to marginalize rogue operators, who currently provide a disproportionate amount of betting opportunities in an immature and largely unregulated marketplace.

Please Note:
Much of what I’ve covered to this point casts a positive light on eports gambling. But the industry also faces some significant obstacles as well.

Nothing is guaranteed for competitive gambling and esportsbooks. That said, here’s a closer look at the challenges the industry must face head-on.

Only Major Tournaments Receive Serious Coverage

Again, esportsbooks dedicate their entire operations toward serving video game bettors. Most of these gambling sites serve more than a dozen markets.

Most esports bettors continue to use traditional sportsbooks when betting on big esports events such as The International.

The International Esports DOTA 2 Event

The problem here is that sportsbooks have to be available for a wide range of sports, from baseball to fencing and just can’t cover the vast amount of esports available.

These types of sportsbooks usually only cover the major 4 sports leagues and possibly a couple more markets- and then certain esports or events.

Surely the large online bookmakers continue to make decent money off this limited selection. But the betting side won’t truly take off until the biggest operators offer a better variety. Until that time comes, it is best to place your bets at dedicated esports betting sites to ensure you have the best options and choices available.

Asian Market Booming

Esports gambling has been slow to take off in the US and many European countries. While many people enjoy watching the action, they aren’t yet aware or confident enough to begin wagering on it.

Packed Esports Arena China

Their popularity in China, Japan, and several other Asian nations continues to become more and more significant. Asia is currently the biggest hub for esports betting action however with titles such as Dota 2 and League of Legends.

Esports is still finding its bearings in Europe and North America still to quite get on the same level as its competitors. Competitive gaming will have to continue growing in these continents before global betting really takes off.

Brick and Mortar

Nevada operators are leery about offering esports gambling. As previously covered, they wish to see even more oversight in video gaming before they move forward.

Of course, the gambling industry is much more than just Nevada. But if one of the world’s premier sports betting destinations doesn’t seem interested in esports betting, it says quite a bit about the industry as a whole.

However, investors and prominent Nevada regulators do see encouraging signs for growth considering the esports arena that was constructed at the Luxor and giant advertisement displayed on the side of the great pyramid.

Luxor Esports Arena

Even though the adaptation of esports betting hasn’t taken full root across Nevada, some believe there’s potential for dedicated brick and mortar sportsbooks. With the current esports boom and the ever-expanding potential it could provide, it is not outside the realm of possibilities.

Please Note:
Nevada operators want to see more regulatory and industry development before diving in headfirst.

Conclusion

The idea that esports betting will continue its fast rise isn’t an absolute guaranted. However, various signs point to this form of gambling becoming much bigger in the near future.

For starters, competitive gaming as a whole continues to garner global attention. Hundreds of millions stream esports contests on a daily basis, and this audience will only continue to grow.

Statista reports show a significant increase in betting activity as well. They project $23.5 billion worth of esports betting action by next year. Sandra Douglass Morgan of the NGCB noted that the Nevada public has shown plenty of interest in esports gambling.

Which likely means it’s only a matter of time before you’ll be able to place your esports bets at your favorite Vegas casino.

Until then, I doubt it will be very long, the industry definitely faces challenges. Asia makes up the bulk of betting activity, while other continents have been slow to embrace esports gambling.

Brick and mortar sportsbooks aren’t thrilled about the industry at the moment. Most major online sportsbooks have dipped their toes into the market, but most refuse to cover a ton of games.

Despite these obstacles, esports betting seems poised more for growth than stagnation. That said, you can expect to see more and more video-game gambling offered in the near future.

Betting on esports may not be the sole future of online gambling, but you will certainly see it become a larger and larger piece of the puzzle.

Latest posts