Esports, which refers to professional video gamers competing against one another, either individually or in teams, is a legitimate, rapidly expanding, and investable gaming industry. Players place wagers on these markets, which the operators, of course, accept in their sportsbooks.
The first player vs. computer game of Tic-Tac-Toe was released in 1952, marking the beginning of competitive computer gaming. But on October 19, 1972, Stanford University staged a competition for the space combat video game Spacewar, marking the first known organized tournament.
So it continued. The emergence of competitive gaming as a significant sports category under the well-known esports moniker has been made possible by the ongoing development of hardware, graphics, and the global adoption of the Internet. Esports is a rapidly growing international phenomenon with approximately 500 million followers worldwide and a market with the potential to be worth billions of dollars.
When Did Esports Start to Revolutionize the Betting Industry?
Since 2015, esports has had phenomenal growth, initially in Asia, focusing on China and South Korea, and later outside the continent in Europe and America, with both local and global sporting events.
Later, its global expansion kept sweeping the gaming sector under the rug. In the past five years, esports has also grown as a business, mainly in the Asian, European, and Latin American markets, serving as a significant new source of wagering and a sizeable athletic event. Numerous bookmakers began investing in esports, keeping up with the fad and creating numerous chances for future collaboration. The market has expanded, customers’ interest in esports has grown, and they have begun to launch various marketing initiatives to advertise their goods.
COVID-19’s Effect on Esports’ Development
Continuing the victory, esports betting has become popular, and over the past three to four years, the number of bettors has significantly expanded. Not to mention how much the Covid-19 pandemic has hampered the sector’s remarkable growth since it seriously disrupted major international athletic events. Sports betting and gambling businesses look to esports as a potential alternative after almost all major sporting events are postponed. Because esports don’t require stadiums or the physical presence of players and fans, they have quickly changed the betting industry and attracted increasing numbers of gamblers.
In 2020, BetConstruct’s strong Esports product had a 300% gain in a single year without traditional sports. After some time, the growth remained at 110% and attracted more players to the esports betting industry, making it an excellent cash generator.
Most Popular Esports Markets
Esports has already become so popular that it is loved on every continent. However, Asia-Pacific (APAC), North America, and Europe are the most typical markets where the product has dramatically increased in popularity.
Most esports fans are concentrated in nations like China, Korea, the United States, and most of Europe. North America and Europe have assumed a significant position in the global esports and gaming ecosystem. Even more startling, only around half of the fans play the video games they stream and wager on.
According to Toptal’s market study, 38% of esports fans are female, and the average age of these fans is between 18 and 34. Esports are given a 100% assurance of long-term growth and never-ending interest as a result of the never-ending process of the youthful generation becoming adults.
Potential for Esports in the iGaming Sector
With outstanding and consistent numbers even after the resurgence of traditional sports, esports proved in 2020 that they are here to stay. However, many concerns about esports’ future in the gambling industry may surface if we look closer. How long will esports be able to maintain this level of success? How can amateur gamers become seasoned gamblers? Or how to draw in new audiences?
In any case, there are a lot of high expectations. According to current calculations and statistics, esports’ growth potential is limitless. This assumption is based on the fact that esports is expanding onto mobile, which accounts for 51% of global gaming revenue, with China having the largest audience (620 million total players).
A reliable internet connection, whether WiFi or 5G, will be considerably easier to utilize on mobile devices, resulting in higher levels of player acquisition and, consequently, higher earnings and revenue streams for operators. Additionally, thanks to mobile technology, virtual reality will eventually become a crucial component of this beautiful experience thanks to mobile technology.
Projections of the Global Esports Market Size
It’s also expected that esports will eventually appear in the Olympics. Media firms like Disney, Comcast, and Netflix will compete for esports someday. Even the CEO of Netflix has admitted that he fears Fortnite more than Disney. For instance, Amazon owns Twitch, the largest website for viewing esports, and has already started the activity.
Statistics Showing Esports’ Influence
The industry has had an indescribably significant impact and is still increasing. In terms of numbers, it’s estimated that the worldwide esports market will be worth slightly over 950 million US dollars in 2020. The source predicts that in 2023, the global esports market will generate close to 1.6 billion dollars in revenue. Between 2019 and 2023, overall viewership is projected to grow at a 9% compound annual growth rate (CAGR). Additionally, the sector is anticipated to expand quickly in the following years due to the ideological convergence and confluence of traditional sports and esports, permanently creating broad interest for a new audience joining the arena as both e-athletes and viewers.
Even though no one can predict the future, esports is incredibly likely to continue, given the intense passion, constant competitiveness, and staggering numbers.