Esports or competitive gaming is gaining immense popularity, with estimates stating the market value could shoot up to $4.3 billion by year-end. Major events like the League of Legends World Championship command viewership in the hundreds of millions.
Leading 5 Esports Tournaments
- The International (Dota 2)
- League of Legends World Championship
- Fortnite World Cup
- Evolution Championship Series (Evo)
- Overwatch League Grand Finals
Luminosity Gaming, Canada’s top esports team, has raked in a staggering $1.34 million in winnings. Such growth has propelled casinos and sportsbooks to offer betting options on esports events. This has paved the way for a unique blend of traditional betting and gaming worlds.
Esports betting operates much like traditional sports betting, where bookmakers analyse teams, players and matches to set odds. It appeals to both the dedicated fans and casual betters who can place wagers on outcomes like match or tournament winners.
Targeting Younger Age Groups
One of the key reasons casinos have ventured into esports betting is to attract younger audiences such as millennials. With an average younger audience than traditional sports, esports appeals to those between 18 to 44, making it as revered as ice hockey and baseball.
As casino revenues have been witnessing a slump in recent years, esports betting is viewed as a way to draw in new generations. Established online casinos in British Columbia have launched esports betting, with many smaller casinos also moving to include esports betting both online and in lounges.
Combining casinos with esports could lead to a surge of new fans for both platforms. Betting activities could boost esports viewership, and exposure to gaming could result in greater interest in casino games amongst young adults.
Esports Partnerships
To strengthen their esports offering, casinos and bookmakers are joining hands with video game publishers. For instance, in 2016, Unikrn became an official esports betting partner as per a deal announced by the organizers of the League of Legends Championship Series.
Such partnerships offer casinos access to official data feeds and branding possibilities associated with well-known esports leagues and tournaments. In return, game publishers receive integrity fees to ensure fair betting activity during matches.
For video game companies, this opens up new revenue streams and lends more credibility to esports as a professional competition.
As betting evolves, esports is expected to mirror major traditional sports leagues in terms of business model and culture.
Merging Experiences
While betting introduces esports enthusiasts to casinos, gaming-themed promotions aim to attract casino patrons to video games. Slot machines featuring esports branding and themes are making an appearance on casino floors across North America, and online too.
Some casinos are creating dedicated esports lounges complete with gaming stations where customers can play their favorite titles. Special tournaments and viewing parties for events like the League of Legends Worlds combine casino hospitality and esports spectating.
On the casino gaming front, design of slots and table games is influenced by social elements and skill-based gameplay typical in video games, enticing younger gamers seeking interactive and multiplayer experiences.
The intersection between video gaming and gambling is set to grow further. With esports betting, the casino and gaming industries can mutually benefit by combining their audiences and experiences.
Regulations Need to Keep Up
Regulation poses a challenge for esports betting as most jurisdictions don’t have specific regulatory frameworks for betting on competitive gaming. Some view esports as a game of skill, making gaming law complex.
Nevada became the first US state to fully legalize esports betting in 2017. New Jersey, Pennsylvania, and several other states have followed suit, albeit with limited policy. The UK, Australia, and parts of Europe have better regulatory systems for esports betting, which is legal in Canada.
Defining clear policies can safeguard esports bettors. As this practice grows, regulators around the world need to develop updated rules and mechanisms for such hybrid gaming/gambling activities. Effective regulations allow the merging markets to expand responsibly.
Continuous Cultural Shifts
Esports betting is a reflection of broader cultural shifts as gaming transforms into mainstream entertainment. A younger generation brought up on video games is more open to crossover with casinos. This craving for interactive, skill-based experiences is altering gambling preferences.
There still exist cultural barriers between the gaming and gambling worlds. However, the lines are fading thanks to shared commercial interests and evolving consumer attitudes. Proper regulation can make this crossover beneficial by growing both markets and creating novel entertainment concepts.
The growing blend of video gaming and casino gaming shows how different modes of play and competition can merge. With esports betting catalyzing these shifts, it will be intriguing to see how these historically separate domains merge into innovative hybrid entertainment models.