What the continued growth of the esports industry means for esports betting
Aug 26, 2020
The esports industry is growing tremendously in terms of both revenue and viewership. As viewership increases, it contributes to revenue growth. It’s not only viewers responsible for generating revenue, but also brands that are finding this platform anew.
Brands are directly and indirectly investing in esports marketing. This explains why this industry is growing rapidly. Esports is also growing in other aspects, such as original content and opportunities for fan engagement. According to the betting community OLBG’s study, esports is rapidly growing and showing no signs of stopping..
The viewership of esports is growing
Since 2016, the viewership of esports has significantly increased among both occasional viewers and enthusiasts. From 2016 to 2017, the increase in the total audience was about 19.3% year over year, divided between 192 million viewers and 143 million enthusiasts for a total audience of 335 million.
In 2018, esports experienced a slight drop in its growth rate. Nonetheless, the numbers still show an overall increase with a total audience of over 380 million.
According to Newzoo projections, the annual growth rate is estimated to be approximately 14% by 2021. They are predicting that a total audience of 557 million will be present in esports by that time.
The future of esports
The esports industry holds a bright future. Investors come from Silicon Valley and Hollywood. There is a rise in real estate being purposed for the industry as well, with Comcast’s Spectacor division building a facility for their Philadelphia Fusion team as per Forbes.
From 2013, the venture capital behind esports startups was $3.3 billion, showing increased investor confidence in the space.
Along with these increases in esports, there have been massive developments in many related industries, such as the technology market. There is a remarkable increase in the sales of computer monitors, gaming consoles, personal computers, specialized peripherals, and headsets, with at least some of this uptick being due to esports’ growth.
It is clear that this industry is on the rise. The audience and monetization opportunities are growing.
Betting on esports
As betting isn’t included in the base revenue generated by esports, it has the ability to generate a lot of additional profit in the marketplace. Betting in esports has existed since the early beginnings of the industry.
Esports betting is now the seventh biggest betting category around the globe, marking its place among sports such as tennis and golf. As esports grows and gains more followers, esports’ fantasy leagues and betting are likely to expand further.
According to data published by Gamescape, the average age of esports viewers is 27, and there are 70% male viewers. These statistics resemble that of typical online sports betting. This study further stated that 25% of the viewers in the esports industry already bet on esports.
It is expected that the esports market will continue growing in both revenue and viewership. As more and more games are introduced in the competition, the number of participants is growing and this new market continues to show itself to be a profitable industry for advertisers, operators, and more.
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