Former Esports Entertainment Group VP set to launch crypto casino
Former Esports Entertainment Group VP set to launch crypto casino
Sharpr is a weekly newsletter covering the intersection of esports and betting
Hi everyone, Cody here.
I’ve got some big news to share today: Sharpr is now officially part of the +More Media portfolio, joining the same stable as Earnings+More, one of the leading betting industry newsletters.
It’s really gratifying to be joining a talented team of media professionals who have held themselves to the same level of editorial excellence that I strive for with Sharpr. This will be a way to generate more awareness around the newsletter, lean into each other's expertise to elevate our content, and continue building Sharpr into something great.
But enough of the waterworks, let’s get to work.
In this week’s edition of Sharpr…
Former Esports Entertainment Group VP set to launch crypto casino.
Pennsylvania lawmaker pushes for esports betting.
Latest data, headlines, and more.
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Former Esports Entertainment Group VP set to launch crypto casino
Former Esports Entertainment Group VP Bux Syed is planning to launch a cryptocurrency casino that he says will “compete with the top brands in the space,” EGR reports.
The online casino platform, Kirin.bet, is set to launch in early Q2 with a Curaçao license.
It will be built on a third-party tech stack that will be able to process crypto transactions “in seconds.”
Syed says the company will target parts of Latin America, Asia, and Europe.
Kirin.bet will serve as Syed’s initial foray into the crypto gambling space after spending over a decade in esports betting. This included a two-year stint at EEG where he worked on esports product development, marketing, and acquisition, as well as playing a role in its esportsbook VIE before the company deactivated the platform in October.
Syed also spent four years as an esports executive at Betway, helping launch its widely successful esports betting division.
“We have a long history of developing esports betting products for corporate clients, but my attitude toward the industry has shifted in recent years,” Syed said. “Becoming a brand with all the infrastructure and licenses in place for a successful esports betting brand necessitates a significant investment.
“Marketing to an esports audience has now become extremely expensive. Sponsorships were not as expensive in 2014, but the prices have since risen to the point where a return on investment is nearly impossible. For this reason, it didn’t make sense for me to pursue the esports vertical any longer. The future is crypto-based casinos” Syed added.
🦈 Sharpr Take: Syed has an impressive track record, most notably launching Betway’s esports betting vertical, which was recognized as a marquee brand in the space for many years.
I found his comments on the sector and its challenges valid, citing the increased investment needed to succeed in esports as it continues to mature while maintaining healthy margins. It’s a thread I’ve touched on many times throughout my writing: making a business from esports betting ain’t easy.
What will be interesting to see is whether or not Kirin.bet intends to market to esports and gaming consumers. That’s where things will get dicey.
If you’ve read any of my past work on crypto betting, you’ll know that I’m not fond of this practice. The infiltration of crypto gambling in esports and gaming has been a hairy and exhausting topic steeped in controversy.
The crux of this issue is rooted in unethical and deceptive marketing practices often involving partnerships with popular livestreamers on Twitch who broadcast reckless gambling behavior to young and impressionable audiences. Crypto-based platforms are known to escalate the danger in these situations as underage users have been able to VPN onto sites like Stake, Roobet, and DuelBits where they can easily deposit an unregulated currency and start betting.
None of this is to say that Kirin.bet is planning anything malicious, but I do suspect that the platform will aim to leverage esports and gaming in some capacity given Syed’s demonstrated expertise in the sector. Besides, how else do you reach younger consumers these days?
Pennsylvania lawmaker pushes for esports betting
A Pennsylvania lawmaker is planning to introduce legislation which would include esports in the state’s legal sports betting industry.
State Rep. Ed Neilson urged fellow lawmakers that Pennsylvania “should quickly add esports” to its gaming portfolio in a Jan. 27, memo.
Neilson says incorporating esports into the state’s sports betting legislation will help Pennsylvania remain “properly positioned” in the gaming industry.
He’s calling on all House colleagues to co-sponsor a bill that would make it a reality, claiming it will bolster the economy through accompanying tax revenue.
The memo suggests competitive gaming is on the rise, citing research that the esports industry will generate nearly $1.8B in “the coming years.” Neilson says Pennsylvania is ripe to capitalize on the trend.
Philadelphia was indeed growing into a hotbed for esports, but popularity and interest has cooled down recently.
In December, Philadelphia’s Overwatch League franchise team, the Philadelphia Fusion, confirmed it would be relocating to Seoul, South Korea, for the 2023 season. Plans to build a multi-million dollar esports venue in the city specifically for the Fusion suffered collateral damage; Comcast Spectacor, owners of the project, confirmed the space would pivot into a multi-use facility for concerts, comedy tours, and seminars.
If regulation is drafted and approved, Pennsylvania would be the 13th state to legalize esports betting.
🗞 In the news
GRID secured data rights for three Dota Pro Circuit regions.
DATA.BET signed a license agreement with Bayes Esports.
1v1Me has launched a PC app.
Rivalry has expanded its casino offering with the addition of live dealer and table games.*
📈 By the numbers
Sports tech fund Venturerock invested $2.25M in POGR, a startup aiming to build a Google Analytics-style product for esports and the metaverse.
The Nevada gaming industry reached record-high revenue of $14.8B in 2022.
iGaming Ontario released figures showing the market experienced a 71% increase in total gaming revenue in the Q3.
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*Disclaimer: I am a full-time employee of Rivalry.