As the world of eSports continues to gain traction across the globe, the demand for links to the betting markets has grown dramatically. In 2021, the eSports betting market is expected to see an even greater surge in popularity, leading to increased segmentation. With the market now becoming more and more divided, understanding the current trends and their impacts is essential. In this article, we’ll take a look at the main segmentation trends in the eSports betting market in 2021.
Introduction to the eSports Betting Market
The growing eSports industry has seen a surge in betting and gaming activities over the past few years. Since the launch of the first online sports betting platform in 2003, the eSports betting industry has expanded substantially. As of December 2020, the estimated global eSports betting market size was worth USD 11200 million and is forecast to a CAGR of 16.2% during the forecast period of 2021-2022 adding a further USD 493.7 million in value. The industry is also witnessing an increasing number of players, and the biggest sponsors such as Unikrn, which were acquired by sport betting operator Entain in 2021 for a reported £50m, will launch new esports betting products in 2022.
Characteristics of Online Sports Betting Products
Gambling on eSports has become an increasingly popular activity in recent years, with people betting on their favorite esport matches or playing virtual currency and skin gambling games. Although there are few studies that provide a review of the structural characteristics of online sports betting products, they facilitate a better understanding of the topic. In general, esports betting products rely on three distinct components, namely the software/platform, content/event, and risk model.
The software and platforms used for esports betting facilitate streamlined user experience for gamers and consumers by allowing them to deposit, withdraw, and place bets quickly and easily; they also provide administrative and technical support for websites and platforms to ensure reliable gaming performance. The content and events of eSports betting refer to the types of bets available on the websites and the available options for customization. Examples of these are regular match-based, head-to-head fantasy games, and other gaming specials. Finally, risk models are responsible for calculating and interpreting betting outcomes.
Factors Affecting the eSports Betting Landscape
The global eSports betting market is driven by a variety of factors. Online and offline betting are said to be positively associated with esports engagement. Furthermore, major factors contributing to the growth of this market include the increasing popularity of video gaming and the emergence of blockchain-based platforms offering a secure and safe way to bet. Moreover, sponsorships and advertising deals with big players such as Unikrn are also fueling the eSports betting market.
In addition, advancements in virtual reality gaming combined with the favorable promotions and bonuses offered by various online eSports betting operators have been encouraging more people to participate in eSports. This fact is clearly evident in the increasing number of people participating in online tournaments and leagues. Furthermore, the COVID-19 pandemic has facilitated the growth of the eSports betting industry, with the 2020 International eSports Annual Report by Fact.MR confirming that community-driven events have triggered a surge in the eSports betting industry.
In conclusion, the eSports betting market is rapidly expanding with the rapid rise of the internet and the influx of new technologies such as blockchain and virtual reality. This industry is estimated to reach USD 11200 million by 2022. Entain’s acquisition of Unikrn, a sports betting operator, for a reported £50m is also likely to help launch new esports betting products in 2022. There appears to be few studies that have provided a review of the structural characteristics of online sports betting products, but the factors mentioned above still provide an important understanding of the landscape.