The expanding youth population and changing lifestyles have both contributed to a rise in demand for video games and online video games.
Covid-19 Impact & Market Status:
Despite the significant economic damage caused by the coronavirus, the worldwide video game industry is booming. The coronavirus is not immune to gaming. Esports was one of the first sectors to be hit due to its dependency on live events. Despite the fact that the majority of esports events have been cancelled or delayed, others continue to take place without any spectators. The industry, on the other hand, is currently doing exceptionally well, thanks to an increase in the number of worldwide and regional tournaments.
In recent years, esports betting has become a much bigger component of the industry. With Covid 19 putting an end to a lot of sports, esports has gotten a boost. Esports betting in 2021 has increased in tandem with esports popularity and interest. Bookmakers are getting more active in the games, supporting teams directly. New territories are allowing esports betting as well. In 2021, the esports gambling market will grow.
Many bookmakers have greatly increased their esports offers in the recent year. Fans can now wager on more niche events as well as games that were previously unrepresented. There has also been an increase in the use of cryptocurrencies in esports betting, with new markets emerging.
The Commercial Segment Accounted for Highest Market Share
The commercial segment held the highest share in global esports betting market and is anticipated to grow with fastest CAGR in the forecast span 2022-2029. Key factors driving market expansion include expanded audience reach and engagement activities, major investments, increased live streaming of games, and improving infrastructure for league events. Online platforms like Facebook, Twitch and YouTube have aided the expansion of the esports market share by allowing streamers to obtain notoriety and substantial earnings. A tremendous growth in the number of gamers has resulted from increased smartphone usage and enhanced internet connectivity.
Sponsorship Segment Poised for Rapid Market Progress
The sponsorship category will have the most shares in 2020. As the sector grows, well-known gaming/tech esports sponsors are growing their involvement. Furthermore, with rising player pay and a growing esports industry, bringing on new sponsors is vital to the long-term commercial success of esports. Gaming and non-gaming industries are both investing in the esports industry to boost their brand value.
North America Dominates The Esports Betting Business
Because of the increase in investments in the region, North America dominates the eSports business. Because of the high penetration of mobile gaming and internet usage in the region, Asia-Pacific is predicted to expand the most over the projection period of 2022 to 2029.
In 2020, Europe had the highest revenue share of almost 35.0 percent, and this is likely to continue throughout the forecast period. The expansion of the regional market can be linked to the adoption of safety legislation and regulations for both offline and online betting in most of the region's countries.
Expanded audience reach and engagement activities, major investments, increased live streaming of games, and improving infrastructure is driving the global Esports betting market.
The global esports betting market was estimated to be worth $12.67 billion in 2020. By 2029, this figure is predicted to reach $26.5 billion, representing a 13.1 percent CAGR over the forecast period 2022-2029.
Online platforms like Facebook and YouTube have aided the expansion of the esports market share by allowing streamers to obtain notoriety and substantial earnings. A tremendous growth in the number of gamers has resulted from increased smartphone usage and enhanced internet connectivity.
Throughout the E-Sports business's years of operation, it has become clear that this industry, along with the video game betting industry, will be around for a long time. A new generation of gamers is expressing interest in e-sports betting, indicating that the E-Sports Betting Market will be defined by them in the future. The expanding popularity of video games, substantial investments, rising live streaming of games, and improving infrastructure for league events are all major drivers driving the global esports market's rise.
E-sports have already taken over the business in this generation since video games are a highly competitive platform. E-sports are a natural step in a country's developing diversification of its E-Sports Betting Market, according to gambling and technology companies. Gambling market is consistently growing. Due to the lack of a traditional Sports Betting Market and the closure of physical casino sites, operators are looking for a solution to patch leaky revenue streams.
Because of the pandemic and the resulting cancellation of all big sporting events, some operators have turned to esports. As a result, the E-Sports Betting Industry is fast growing. Esports betting is on the rise, with teams like Vitality, Team Liquid, Astralis, and Ance battling it out in the arena, and so many talented players carving out a name for themselves. These days, mobile gaming and viewing are becoming popular, resulting in greater demand for Esports and a growth in the E-Sports betting sector.
Integrity is one of the industry's most pressing concerns. Some betting companies have failed to obtain the finest gaming licences, while others have been outlawed by governments in various nations. There have also been allegations of match-fixing. This is limiting people from participating in the esports events hampering the global esports betting market.
Furthermore, technology advancement, changing regulatory environment, organisation launching legal sports betting operations, wagering being allowed through online sites or mobile devices, state legislatures making mobile wagering more accessible, emergence of strong new markets beyond traditional gambling are some other significant growth factor for bettors, sportsbooks, leagues, and media companies etc driving the global sports betting market.
Major Developments in Global eSports Betting Market: A Snapshot
- New markets opening up in 2021 will contribute to some of the growth of esports betting. In recent months, New Jersey and a few other states have authorised esports gambling. This allows more people from a wider range of backgrounds to participate. While the United States still lacks the same level of acceptance as Europe, this is a significant step forward for esports betting in 2021.
- Unikrn was purchased by a larger corporation and merged into Entain. Unikrn joins a growing list of bookmakers that offer more esports options. This company already owns major bookmakers such as Ladbrokes and bwin.
The major market players global esports betting market are 888 Holdings, DraftKings, Paddy Power Betfair, MGM Resorts International, Sportech, William Hill, Real Luck Group Limited, Bet365 Group, and Esports Entertainment among others.
E-sports Betting Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||$26.5 billion|
|Growth Rate||CAGR of 13.1% during 2021-2028|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and South Africa|
|Key Players Profiled||888 Holdings, DraftKings, Paddy Power Betfair, MGM Resorts International, Sportech, William Hill, Real Luck Group Limited, Bet365 Group, and Esports Entertainment.|
Key Segments of Global eSports Betting Market
Type Overview, 2022-2029 (USD Billion)
- League of Legends
- Dota 2
- CO: GO
Application Overview, 2022-2029 (USD Billion)
Regional Overview, 2022-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa