The COVID-19 pandemic has encouraged the growth of the esports betting industry. Many companies aim to address the unique challenge that comes with new ways of gambling that keep popping up on the market.
The U.S. sports betting market has reached a new level of development since the Supreme Court has given legal status to online betting activities. The current market size is estimated at $9.5 billion. According to the recent forecasts, the number is about to grow to $37 billion by 2025.
Most esports betting is quite simple as participants can bet on potential inners and game outcomes. Some large esports companies allow users to wager on specific in-game interactions: who will win or lose, how many scores will be scored, what is the first team to win, and so on.
While some bookmakers focus on esports only, others cover a wide range of betting services that include esports and video games such as CS: GO. For example, you can find great coverage of betting events at https://csbet.gg/en.
Producing esports odds is also a part of the business model, which delivers betting services to representatives of the sports and esports industries. CSBet believes that one of the major challenges to companies in the space is the potential risk that an esport sector could experience a decline in popularity or be replaced by a newer trend. The integration of CS: GO and Dota 2 into the betting environment has minimized the risks as the audience seems to stay interested in online betting.
Esports fans tend to be younger than viewers of traditional sports, meaning esports books require more potential underage bettors than their counterparts. This might be a serious issue that needs to be sorted out on the legislative level.
To circumvent this risk, esports books have gone to screen users to educate them about the risks of betting. The esports betting company has cooperated with esports organizations such as FNATIC. Their mission was to inform younger viewers about laws and best practices around betting, limit the maximum betting amounts, and to prevent inexperienced bettors from withdrawing their savings. According to Eilers & Krejcik Gaming, the final amount bet on esports reached almost $8 billion in 2020. And this is not the upper limit.
In addition to obvious philosophical obstacles, some legal roadblocks stand in the way of esports betting to becoming a fully realized industry. Despite the Supreme Court ruling in 2018, companies still require official licenses to operate in the United States. To escape these restrictions, most sportsbook companies use licenses from other countries to operate worldwide. Generally, every official sportsbook has obtained a beachhead foundation license.
The traditional game plan for betting companies is to get an offshore license to provide proof of concept. Then, they try to cover the individual-country regulated markets, such as the United States, the United Kingdom, and Australia. Getting licensed is not as easy as it seems. Every country has a number of requirements to be fulfilled by betting companies. If something doesn’t seem right to the regulator, the license request is going to be denied.
While the esports betting market gets bigger and bigger, some esports bookies have started the expansion into traditional sports to gain bigger revenues. The modern audience of esports is very young, so they have higher disposable income. This fact is incredibly important for bookmakers. We can only sit and wait for what’s coming next into the world of esports.
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