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.
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:
Let us consider the most famous disciplines in this category:
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.
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.
They vary depending on the country or region:
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:
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:
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).
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:
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.
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.
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:
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:
Among the celebrities, a famous boxer, Mike Tyson, a football player, David Beckham, and many others have their eSports teams.
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.
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.
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 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:
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