FEATURES
BIG QUESTION
After enjoying rapid growth throughout the early stages of the pandemic, what does the future look like for esports?
Kambi, COO, Erik Lögdberg
Erik Lögdberg
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GAMBLINGINSIDER.COM
What was at one stage a largely niche pastime, esports is currently one of the fastest-growing global entertainment industries with an audience of more than 450 million people worldwide. Buoyed by the success of popular games such as League of Legends, Counter-Strike: Global Offensive and DOTA 2, as well as the growth of streaming services like Twitch, esports is now estimated to be worth more than $1bn in revenue this year at a growth rate of 15% year-on-year, according to Newzoo. Such strong growth is why, particularly in recent years, esports has become such an enticing opportunity to the sports betting industry. Indeed, more and more betting companies have begun offering markets on esports and many have invested significantly in their respective esports betting products, in some cases treating it as a standalone vertical alongside casino, poker and sports. As the question this article poses might suggest, there was a particularly large surge in the popularity of esports betting at the height of the Covid-19 pandemic. The cancellation of major sports across the globe resulted in a more limited offering comprising the likes of Belarusian soccer, table tennis and esports in early 2020. By way of example, in March 2020 the number of esports bets placed on the Kambi network was approximately 250% higher than in the same period the previous year. Interestingly, when the global sporting calendar returned to normality, the interest in esports remained high, which served to
underline that the growth of esports betting was no flash in the pan. Data from the Gambling Commission, for example, showed that gross gambling yield from esports betting continued to rise into May 2020 once the sporting calendar had resumed, while other ‘niche’ verticals reported a decline. The potential for esports to be a significant part of the sportsbook has never been clearer. Of course, the future growth of esports betting is largely dependent on how it is regulated on a country-by-country basis, or, in the case of the US where licensed sports betting in general is still in its infancy, on a state-by-state basis. This forms part of a wider industry trend which has seen many regulators across the globe permit betting on esports; while also attempting to establish a framework that ensures the highest standards of integrity monitoring are upheld, and that esports is protected from manipulation. Since the repeal of PASPA in May 2018, an increasing number of US states such as New Jersey, Colorado, Nevada and West Virginia have regulated esports betting, and more states are expected to follow suit in the future. Many US sports teams have entered into partnerships with esports betting providers too. In general, esports is immensely popular in the US and, as we don’t feel anyone has really cracked the esports betting product or market yet, we believe it offers a significant opportunity
