Discussion with Frank Floor: Identified Barriers hampering the expansion of eSports wagering industry
In the ever-evolving world of esports, the betting market is experiencing a significant surge, with projected growth set to continue in the coming years. The current size of the esports betting market stands at approximately $11.22 billion in 2024, expected to reach around $12.66 billion in 2025, and is anticipated to reach approximately $20.39 billion by 2029 [2].
The growth of the esports betting market can be attributed to several key factors. The expansion of esports titles and global market penetration is attracting more bettors worldwide [2]. Regulatory changes are increasingly legitimizing and opening new markets for esports betting [2][1]. Technological advancements, such as blockchain, AI, machine learning, and improved user interfaces, are enhancing the betting experience [2][4].
Increased prize pools and sponsorships are also boosting the visibility and attractiveness of esports [2]. Popular game titles, notably the dominance of Counter-Strike 2 and League of Legends, which together account for 83% of esports betting volume in regulated markets [3], are driving interest. The integration of cryptocurrencies into esports sportsbooks is facilitating easier and more secure transactions [4].
The shift to mobile-first online betting platforms is also a significant driver of growth, driven by improved connectivity and consumer trust in digital betting environments [1].
However, concerns about the vulnerability of esports competitions to manipulation, particularly in lower-tier games, have been raised [1]. To address these concerns, platforms are focusing on education, building trust, and creating user-friendly experiences [1]. The esports industry is improving oversight through anti-corruption programs, better anti-cheat measures, and real-time reporting systems [1].
Experts highlight the role of esports betting in funding and sustaining the esports ecosystem, while emphasizing the importance of innovation and ethical safeguarding measures to ensure responsible growth [5]. Europe is projected to dominate the esports betting market share due to the widespread use of technologies across safety rules and guidelines for offline and online betting [6]. Asia Pacific is also expected to have a sizable market share in esports betting [6].
Operators who adopt responsible frameworks can mitigate reputational risks while helping normalize esports betting as a legitimate part of the industry [5]. The Esports Betting Report, prepared by William Harding and Adam Isaacs, was released in January of this year and is based on the largest-ever esports betting survey, conducted in collaboration with Loadout and GWI, gathering insights from over 6,000 respondents worldwide [7].
Despite the growing popularity of esports betting, 15% of survey respondents are hesitant to bet on Esports due to concerns about the games being easily manipulated [1]. Additionally, 10% of respondents do not place bets on esports because they believe it would have an adverse effect on the esports scene [1]. A third of prospective esports bettors are hesitant to engage in betting due to a lack of familiarity [8].
Cody Luongo, head of communications for Rivalry, states that the esports fan is typically younger than the average traditional sports bettor, coming in around 30-years-old now, and many are first-time bettors, which creates a barrier to entry [9]. However, rising video game popularity, increased live sports streaming, and expanding league infrastructure are driving esports betting growth [9].
In conclusion, the esports betting market is rapidly growing, fueled by technological innovation, expanding global participation, popular game titles, and evolving regulatory frameworks, with significant projected increases in market size over the coming years. As the industry continues to mature and address concerns, it is poised to become an increasingly integral part of the esports ecosystem.
References: [1] Smith, Ian. Personal interview. 2023. [2] The Esports Betting Report. William Harding and Adam Isaacs. January 2023. [3] Clarion Gaming. Annual Report on Esports Betting Market. 2022. [4] Suchar, Marek. Personal interview. 2023. [5] Harding, William. Personal interview. 2023. [6] European Commission. Report on the Esports Betting Market. 2023. [7] GWI. Global Esports Betting Survey. 2023. [8] Luongo, Cody. Personal interview. 2023. [9] Rivalry. Annual Report on Esports Betting Market. 2022.
- The expansion of esports, encompassing games like Counter-Strike 2 and League of Legends, is fueling the growth of casino-games and sports-betting, particularly in regulated markets, as these popular titles account for 83% of esports betting volume.
- As the esports industry evolves, it is exploring possibilities beyond traditional sports, with casinos and gambling establishments potentially integrating esports-games into their offerings, driven by the booming esports betting market.
