Promo Configurator
manager@casino-market.com
Copy
Attention!
It is important to enter the specified email manager@casino-market.com to avoid fraud.
Copied!
support.casinosupermarket
Attention!
It is important to enter the specified skype support.casinosupermarket to avoid fraud.
Copied!
en

Development of Betting on eSports in the Gambling Niche

Updated 27 february 2024
Betting
Author: James Burton

Specialists of the Casino Market company will tell you about the placement of bids in cyber competitions (a dominant direction in the sportsbook market in recent years), why income in this sector is gaining momentum, and how to make money on it in 2024.

Order Service

History of the Sector’s Popularisation

eSports in the gambling niche

The concept involves tournaments in multiplayer video games. They can take place both between teams and on an individual basis. The winner is a person who demonstrates the best skills, reaction, and endurance.

Over the past 20 years, cybersport has undergone a significant transformation: from amateur entertainment to a full-fledged discipline that attracts millions of spectators at the stadiums and in front of monitor screens. The sector's revenues also increased, making cyber competition wagering one of the most promising areas.

StarCraft was the first large-scale game of this type. It was released in 1998 and quickly gained immense popularity in South Korea. Over time, content of this type expanded beyond Asia and collected a solid customer base from Europe, America, and Africa.

Every year, statistics in the niche only improve. For example, in 2016, 324 million gamblers all over the world watched, discussed, and took part in digital tournaments. In total, their organisers received $500 million in profits. The money came from ticket sales, advertising, and sponsorship deals.

The year 2020 was a turning point for eSports. During the pandemic, all offline competitions were cancelled, and the audience quickly switched to virtual versions. Bookmakers quickly followed the trend by offering attractive bets on their platforms.

The cybersport industry has not been hit as hard by the coronavirus as many other sectors. Players and teams continued to compete in virtual tournaments.

The NewZoo research company published the following statistics:

  • the total eSports audience at the beginning of 2024 is 646 million people;
  • the number of users who follow such battles in spectator mode is 351 million;
  • the number of active players who place bids in bookmakers’ offices is 295 million;
  • compound annual growth rate (CAGR) of eSports fans is 8%;
  • net income of the sector is $1,866.2 million.

Popular eSports Entertainment and Competitions

Cybersport games: key features

Let us consider the most famous disciplines in this category:

  1. League of Legends (LoL). This is an online game in the MOBA (Multiplayer Online Battle Arena) genre. It attracts the audience with exciting battles between teams, unexpected plot twists, and an impressive prize fund. The World Championship tournament includes 24 teams from different countries. They go through tryouts and playoffs, and then the best ones meet in the finals.
  2. Dota 2. This MOBA discipline attracts with its original gameplay and a large selection of strategies. The International is the first and largest tournament for Dota 2 fans, held by Valve. The event takes place in mid-autumn in different cities all over the globe.
  3. Counter-Strike: Global Offensive (CS:GO). The famous first-person shooter was created by Valve and Hidden Path Entertainment in 2021. The solution is characterised by several difficulty levels and the ability to adhere to a wide variety of tactics and strategies. The most famous CS:GO tournaments are the ESL One and Intel Extreme Masters.
  4. Overwatch. The sci-fi shooter was released by the Blizzard Entertainment American brand in 2014. This is a continuously developing free game where users have constant technical support provided by the company. Currently, 9 seasons of the product have been released. It is also connected to the global Overwatch Champions Series tournament.
  5. Fortnite. The solution has gained popularity thanks to its unique Battle Royale mode, exciting plot, and extremely realistic graphics. Every year, the Fortnite World Cup competition based on the results of several qualifying rounds takes place.

According to Statista, the largest prize pool ($47.8 million) was formed in Dota 2 tournaments. Second and third places were taken by CS:GO and Fortnite, which generated $20.9 million and $19.6 million, respectively.

eSports Betting in the Gambling Sphere

Before 2020, only a few bookmakers had such products in their portfolio and promoted them, but now, cyber competitions have become an important section on all specialised platforms.

The niche brings more profit compared to volleyball or athletics, second only to the industry’s giants: football, basketball, and tennis.

Legalisation Issues

They vary depending on the country or region:

  1. Europe. In most jurisdictions, eSports is regulated as part of broader gambling legislation. To accept bets, companies only need to obtain a licence to open a bookmaker’s office. Similar practices are observed in the United Kingdom, Sweden, Romania, Ukraine, Malta, and other countries. In Italy, where cybersport wagering was previously prohibited, new legislation came into force in 2023 and legalised this area.
  2. North America. In the USA and Canada, the regulation of the niche is the responsibility of local authorities. Currently, sports betting and virtual competitions are legal in 33 states and the city of Washington, DC. Entrepreneurs can obtain a permit in Pennsylvania, New York, Michigan, Nevada, Kansas, Missouri, and Ohio. There are still territories (for example, Texas) where all types of gambling are strictly prohibited.
  3. Latin America. The region is on the path to liberalising casino legislation. Investors are mostly interested in online casino legalisation, while the activities of bookmakers have already been officially recognised in most countries. For example, in Brazil or Argentina, companies can accept bets on eSports. Licensing rules and taxation nuances vary depending on the province.
  4. Asia. This is a unique area with divisive policies in relation to the gambling industry. In Singapore and the Philippines, bids on cybersport are allowed. In India, some bookmakers operate in the grey market, but the niche itself generates multimillion-dollar profits. In Japan and South Korea, eSports is considered a traditional discipline. Although the work of betting shops in these countries is prohibited, a powerful community has been created there.

Launch of an iGaming Startup

Entrepreneurs can open a universal bookmaker’s office and offer both traditional and cyber tournaments or concentrate only on the acceptance of eSports bids. It is also possible to add such products to an already existing gambling platform.

All 3 options imply:

  • acquisition of licence;
  • purchase of high-quality software (sportsbook option, payment system, or CRM service);
  • development or improvement of the website design;
  • creation of an effective marketing campaign;
  • attraction of affiliates, and much more.

The key task of operators is to buy reliable program components. Businessmen are unlikely to independently view hundreds of matches and tournaments, conduct end-to-end analysis, and form an event line. All bets and odds must take into account the company’s margin (net income), so it is impossible to do without high-quality software.

There are many brands working in the European market that have proven themselves well. For example, GG.Bet, Netshop, and UltraPlay specialise in providing eSports products. They offer a large selection of games and offer professional technical and legal support.

Solutions of such manufacturers:

  • cover more than 200 regional, national, and international markets;
  • generate about 10 thousand live and pre-match events.

The Bet365 Group Ltd, a British provider, is engaged in both the acceptance of wagers on eSports and the supply of universal software for B2B partners. It offers favourable quotes for traditional and cyber disciplines.

Unikrn is a well-known American brand that provides certified software and conducts themed virtual competitions. It is part of GVC Holdings but continues to develop proprietary solutions.

Entrepreneurs cannot do without a modern payment system. All operations in bookmakers’ offices should be convenient, fast, and secure. The best decision would be to buy software from well-known providers (Visa, MasterCard, Neteller, or Skrill).

Features of Betting on Cybersport

There are several systems of coefficients in the sector. The most popular one is decimal.

If, for example, team A plays against team B, then the manufacturer develops odds for these groups. His forecasts are based on detailed analytics (of teams, their members, previous achievements, and the nature of the game), interviews with functionaries (coaches and managers), and other factors.

All teams are divided into 4 categories depending on the level of matches (local, regional, and international) and qualifications. The greatest interest is caused by meetings of the Tier 1 group due to their vast experience in playing in the international arena.

Popular bets in the eSports sector:

  1. Winner of the match. This is the main type of bid. The rewards are paid to the user who correctly predicted the tournament’s outcome. Each team has its odds: lower for the favourites and higher for the outsiders.
  2. Handicap. This is a form of wagering introduced to equalise the chances of the victory of opposing teams. The weaker party gets a technical advantage, and the gambler must determine whether it can maintain leadership even with these odds.
  3. The card’s total. People place bids on the number of rounds that will be played in a match. To win, it is necessary to carefully analyse the composition of the teams and their strategies since these factors affect the overall outcome.
  4. Handicap by cards. This is a bet on the difference in rounds between the winning and losing teams. Users determine how strong or weak the athletes will look and what tactics will be applied.

It is not so common to focus on individual participants. Only captains who have achieved impressive results may attract the attention of bookmakers.

Ratings are the main analytical resource that allows bettors to evaluate teams, predict the outcome of matches, and place bids. Detailed information and high-quality statistics can be found on such portals as ESL, StarLadder, and DreamHack.

Key Trends in the Industry

eSports industry: general info

This is a promising niche with revenues growing annually. Huge amounts of money are received both by operators of online betting shops, tournament organisers, team owners, and companies that provide live broadcasts.

Let us consider the main tendencies that affect the sector’s capitalisation.

Increase in the Number of Audience

The indicator’s growth is the key main reason for the popularisation of cybersport. Millions of gamblers all over the world watch eSports events online and offline. Every year, their number increases by 8%: these statistics are provided by the NewZoo authoritative platform.

The huge viewership generates high revenues from digital rights. Leading streaming resources, such as Twitch and YouTube Gaming, pay huge sums to broadcast online contests. This helps teams and tournament organisers earn more.

The Twitch streaming platform can boast of the greatest audience growth: 31 million people visit it every day.

Gamblers from Asia, including China, watch eSports broadcasts on the following portals:

  • Douyin;
  • Huya;
  • Zhangi;
  • Huomao;
  • Panda TV.

The Increased Role of Sponsorship Deals

Top companies from different industries (IT, financial sector, retail, and food) have already realised that their brands can be associated with eSports and multiplayer competitions. Corporations pay huge sums to drive solvent traffic from this source.

Such collaboration is beneficial for everyone: sponsors, teams, and the niche in general.

Well-known examples of deals in the cybersport market:

  • the Overwatch league, which has been funded by Intel, T-Mobile, Coca-Cola, and Toyota for many years;
  • League of Legends North America Championship Series (LCS), sponsored by Rocket Mortgage, Honda, MasterCard, and Red Bull;
  • competitions in the Counter-Strike: Global Offensive IEM Masters XIII league, supported by Intel, Vodafone, Betway, and Paysafecard.

Among the celebrities, a famous boxer, Mike Tyson, a football player, David Beckham, and many others have their eSports teams.

Merchandising

This is the sale of uniforms and other products related to the niche. Many teams have also opened online stores where they sell T-shirts, caps, hoodies, accessories, and kitchen utensils (mugs and thermoses) with their emblems and logos.

NewZoo predicts that by the end of 2024, merchandising revenues will reach $207.9 million. This is 10% of the industry’s total profits.

Active Implementation of Innovations

This is the driving force not only of eSports but of the gambling market as a whole.

Partnerships between organisations that hold digital contests and the IT sector are becoming closer. They include the development of individual equipment, exclusive perks for players, changes to the way of broadcasting games, and much more.

The sector is also affected by artificial intelligence and blockchain. These technologies are used to predict results, create advanced software, protect client data, and perform other tasks.

Cooperation With Mass Media

Such platforms are interested in obtaining rights to cover competitions. Thanks to this, they reach a wider audience and generate huge advertising revenues.

Agreements with large media holdings are also beneficial for cybersport in general. They increase the legitimacy of the niche, making it recognisable and prestigious.

The Main Things about eSports in the Gaming Sector

eSports betting: the main nuances

The concept is quite a new trend, and it is becoming more and more in-demand.

Key features that those operators who want to provide such products and services need to take into account:

  • eSports betting has a huge audience in Europe and beyond. This type of activity is legalised in many states and is equated with bookmaking. In Malta, the UK, Romania, Ukraine, and other jurisdictions, both traditional and cybersport bets can be accepted within one licence.
  • Popular games of this type include LoL, Dota 2, CS:GO, Overwatch, etc. Tournaments in these disciplines attract a multi-million audience and bring huge income to organisers, bettors, and bookmakers.
  • Among the key trends in the market, we can name the rapid growth of the number of customers, the increased role of sponsorship contracts and partnerships with mass media, as well as the development of merchandising. The industry is witnessing an active introduction of innovations, which also affects the capitalisation of the sector.
  • To launch a sportsbook site with bids on cyber competitions, operators will need a permit, a diverse event line, and secure payment software.

From the Casino Market studio, you can order:

Order Service

Share via social media
 
Join our Telegram channel James Burton James Burton The Casino Market partner, the owner of the gambling establishments’ network

Have questions or want to order services?
Contact our consultants:

  • e-mail: manager@casino-market.com
  • Skype: support.casinosupermarket
  • feedback form.
Attention!

Check the information used to contact us carefully. It is necessary for your safety.

Fraudsters can use contacts that look like ours to scam customers. Therefore, we ask you to enter only the addresses that are indicated on our official website.

Be careful! Our team is not responsible for the activities of persons using similar contact details.

Do You Have Any Questions?
Consult our expert for free!
Enter your message
Type your message
Name
Enter your name
You need to fill in the captcha
Please confirm your agreement with our rules
DEMO
Promo
Configurator of a Casino
Request via Telegram
Download presentation
Share this
Configurator
Create your own unique gaming site absolutely free!
Assemble a casino
Discount for the connection of the provider
Evolution Gaming!
Get a Discount!
Evolution Gaming
Connect the demo of a gaming site!
Connect the demo of a gaming site!
Connect demo
By using this website you agree to use cookies as stated in
DEMO
Download Casino Market presentation
Learn more Download
Registration has been successful, thank you!
Here is something special for you