Esports could lead to Online Gambling Explosion

The last game to explode in the online gambling world was poker, with Texas Hold’em experiencing massive growth from 2003 to 2011. Online poker growth has since leveled off, but it appears that Esports could pick up where poker left off.

Esports have already created an industry worth $325 million last year, based on advertising, merchandising, media rights and ticket sales. However, online gambling could take Esports to another level, and vice versa.

Fans can already place online bets on the outcome of these video game competitions. But, according to market research firm Eilers, it won’t be until 2020 that the market really begins to take off.

Eilers predicts that fans will bet $23.5 billion on Esports at the turn of the decade, $1.8 billion of which would go to the operators as “vigorish” or fees.

CNBC reports that famed online gambling company bwin has already been looking for ways to further profit off eSports. They cite research that indicates betting on the “League of Legends” tournament will top wagering on who will win the 2016 European Football Champions League.

“Esports has matured over the past few years to the point that it is now on par with some of the leading major sports in of viewership, following and interest,” said Alex Igelman, who manages Gaming Research Partners.

Igelman added, “Many of the world’s leading bookmakers regularly take bets on numerous eSports matches and although in its infancy, the betting volume already exceeds that of golf, tennis and rugby and is rapidly growing.”

While these reports definitely sound optimistic, there are some hurdles to clear before the betting industry realizes the projected $1.8 billion in revenue.

“At present, some of the key markets for Esports are Asia and North America (U.S.) – two regions that have prohibitive regulation on betting and from which many firms will not take bets/customers,” said Lorien Pilling, research director of Global Betting and Gaming Consultants.

Another problem, as senior games analyst for IHS Technology Steve Bailey points out, is that Esports may struggle to attract fans outside of its niche audience.

“The key issue with broadening e-Sports appeal is that the very things that make it exciting to current audiences may very well be off-putting for many other audiences,” said Bailey.

Despite the current drawbacks, there’s still plenty of appeal behind Esports from a betting standpoint. And if everything falls into place for the industry, Esports could become the new online poker.