The eSports betting market is expanding in the year 2020.

The Covid-19 pandemic has had a profound and lasting impact on the world, altering the course of history. However, amidst the chaos and uncertainty, it has also opened doors to an entirely new audience for eSports, a phenomenon that might have remained undiscovered by many. The global quarantine measures implemented in response to the virus have provided individuals with unprecedented opportunities to delve into unexplored territories. As a result, an increasing number of people have begun to engage in eSports, both as dedicated players and avid spectators, harnessing the abundance of time at their disposal.

According to a research released in May 2020 by the global consumer research agency 2CV and ProdegeMR, betting revenues on eSports are anticipated to achieve unprecedented levels in 2020. The research projects that revenues will skyrocket from $7 billion in 2019 to a staggering $14 billion, attributing this substantial growth largely to the ongoing Covid-19 crisis.

According to Newzoo's April 2020 report, the eSports market is expected to generate revenues of $1.059 billion in 2020, excluding betting. This is an increase from the $950.6 million generated in 2019. Newzoo, a prominent provider of game and eSports market analysis and research, offers valuable insights into this industry. The aforementioned revenue figure encompasses various sources such as sponsorships, media rights, ticket sales, merchandise, and infrastructure investments. It is important to note that the reported revenues do not include any income derived from betting activities.

According to the Newzoo report, the global quarantine has resulted in an increase in viewership for group eSport streaming, leading to faster-than-anticipated revenue growth. Estimates suggest that revenues will reach $19.9 million in 2020 and $34.4 million in 2024. In light of canceled and postponed events, the observatory predicts that the market will see a surge in new spectators entering the scene.

Before the Coronavirus emergency, it is evident that the growing fascination with the eSports sector is not solely due to the current limitations on social interaction. The esports industry had already been experiencing growth even prior to the lockdown, with an average annual surge of approximately 35% since 2015.

What are eSports?

I enjoy watching eSports, which are essentially video game competitions. The abbreviation "eSports" stands for electronic sports. These competitions are typically organized and involve multiple players competing against each other, either as individuals or as part of a team.

In the late 2000s, the popularity of organized gaming competitions saw a significant increase with the participation of professional players and spectators through live streaming. These events, which were previously mostly among amateurs, became a prominent part of gaming culture. According to the Newzoo report, the total audience for esports is projected to reach 495 million people globally in 2020, experiencing an annual growth rate of 11.7%.

In today's global eSports and gaming ecosystem, it is no longer true that the competitive video game craze is primarily an Asian phenomenon. Most enthusiasts are now found in Asia, North America, and Europe. Previously, people believed that Asia was the hub of eSports, but this is no longer the case. In fact, only 51% of eSports enthusiasts are currently located in Asia. The prominence of North America and Europe cannot be overlooked, as they have emerged as major players in the world of eSports and gaming.

Call of Duty, Counter-Strike, Fifa, Fortnite, League of Legends, and Overwatch are among the popular games that attract competitors from various championships and teams. Millions of fans from around the globe eagerly watch and follow these players as they engage in live events, whether on TV or online. Streaming platforms like Twitch offer viewers the opportunity to witness their beloved players in action, thus serving as the ideal platform for renowned players to cultivate their fandom.

What is the functioning mechanism of eSports betting?

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Skin betting

Item betting, or skin betting as it's commonly known, has gained significant popularity among eSports enthusiasts. In today's gaming landscape, many games incorporate virtual currencies and various items that can be exchanged between players. Numerous online platforms have emerged, providing bettors and players with the opportunity to buy, sell, and trade these currencies and items. These platforms not only facilitate the exchange of virtual goods, but also serve as betting sites where these currencies and items can be utilized as an alternative to real money when placing wagers on the outcome of eSports competitions. Furthermore, they offer additional gambling options, such as roulette and other games of chance, involving these virtual assets.

Social betting

Social betting is another form of eSport betting where individuals engage in informal wagers among friends and online acquaintances. These bets typically revolve around predicting the outcome of various events. While the use of skins or in-game items is a common practice in social betting, it is also feasible to wager with actual currency.

Fantasy betting

When participating in fantasy betting, one must allocate funds towards specific players. The process involves receiving a hypothetical budget to assemble a team of players for upcoming eSport matches. As the matches commence, points are awarded based on the performance of the selected players. Ultimately, those individuals with the greatest number of points by the end of the competition will be rewarded accordingly.

Head-to-head bets

Players have the opportunity to engage in a competitive form of betting where they vie against one another, with the stakes being either real money or skins. The bets are arranged by the players themselves, though there are also platforms available that facilitate the process in a more structured manner. These websites often require participants, whether individual players or teams, to pay entry fees, and the winners receive their rewards from the accumulated funds.

Conclusion

eSports have emerged as a rapidly expanding sector in its own right, facilitating the merging of diverse established industries. This phenomenon has become deeply intertwined with the flourishing video game market, presenting an entirely fresh landscape for sponsors and advertisers to explore. For brands and entertainment companies alike, eSports present an invaluable chance to tap into the beloved pastime of digital natives and Millennials: engaging in and observing game-related content. Through the introduction of live streaming and events, gaming has seamlessly integrated into the realm of broadcasters and media outlets, enabling them to apply their advertising strategies to a market that was once inaccessible to them.