As eSports continue to rise in popularity, many are looking to capitalize on this new form of competition and entertainment. With betting on the outcomes of professional gamers’ matches becoming increasingly popular, numerous companies and venture capitalists have started entering the trends-understanding-forex-trading/” title=”Casino Industry Trends: Understanding Forex Trading”>eSports betting market, showing no signs of slowing down. The question is—what does the market forecast for eSports betting look like? In this article, we will look at the current trends and outlooks for the rapidly-growing eSports betting market.
eSports Betting Market Overview
The growth of the eSports Betting market has been exponential since its emergence in the mid-2010s. The market, projected to reach USD 21060 million by 2027, is driven by the global attraction towards online video games, lucrative offers and rewards offered by eSports governing bodies and entertainment companies, and ease of access to a variety of exciting events.
Moreover, the popularity of eSports amongst professional players has been increasing, leading to more tournaments, more teams, and ultimately more bets being placed. As such, the market offers plenty of advantages for established organizations and start-ups, including opportunities to gain huge profits.
Growth Drivers
The eSports Betting market is growing considerably, spurred by higher disposable incomes, increased digitization, and the proliferation of advanced technologies like 5G networks, virtual reality, and augmented reality. The rising visibility of eSports teams and tournaments has also been instrumental in creating more space for the growth of the eSports Betting market.
Additionally, the development of eSports infrastructure has further fuelled its growth in the global market, leading to the emergence of new investment opportunities, explosive growth in revenues from sponsorships, and advertising.
The market is expected to be further driven by efforts undertaken by bookmakers, exchange sites, and fantasy sites to engage global eSports fans and target various demographics. For instance, last year, William Hill launched an eSports betting site focusing on the US market, while FanDuel and DraftKings have already established a presence in this domain.
Market Challenges
The existing regulations, however, pose a challenge to the market growth since they have limited the entry of new players. Besides that, the lack of state-level regulations and the fluctuating currency rates are other impediments that may affect market growth.
Furthermore, the market survey conducted by the American Gaming Association in 2018 revealed that only one in eight bets placed on the eSports events are done through legal channels. This indicates that a considerable amount of earnings go untapped, creating a major impediment to the market growth.
Finally, the market is also fraught with certain ethical issues, such as match-fixing and cheating, which could cause damage to the overall industry.
Nevertheless, with favorable regulations and legal recognition from various nations and stringent monitoring of eSports events by various sports governing bodies, the market is expected to reach greater heights in the coming years.
