Esports industry is warming up to sports betting, report suggests
Sharpr is a weekly newsletter covering the intersection of esports and betting
Hi everyone, Cody here.
A new industry report suggests that esports is starting to warm up to gambling. Key stakeholder buy-in from publishers and leagues has always been the essential missing link that could help foster esports betting. Based on my observations, I support the thesis that the industry is finally starting to come around to gambling, and there are a lot of encouraging tailwinds to point to.
Let’s jump in.
In this week’s edition of Sharpr…
Esports industry is warming up to sports betting, according to a new report.
Bayes Esports enters Canada with Bet365 deal.
2022 World Championship breaks League of Legends viewership record.
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Esports industry is warming up to sports betting, report suggests
Nuvei, PayPal, and Esports Insider outlined the esports industry’s relationship with gambling as part of a larger joint report, and it prompts a compelling belief that this very important bond is starting to mature.
The report surveyed more than 100 esports companies, including teams, game publishers, tournament organizers, and more.
Approximately 77% of esports companies said sports betting was moderately important to the future of the industry, while only 34% said it was important to its particular business.
Esports leagues and publishers that prohibit gambling as a sponsorship category were said to be the largest barrier to growth for sports betting.
🦈 Sharpr Take: The survey shows that the esports industry’s temperature to gambling is starting to warm up.
From my perspective, the sector has been busier and more visible in the last two years than ever before. The pandemic of course kicked off a lot of the buzz and action in 2020, but the space has continued to grow steadily since.
We’ve seen esports operators scaling, more sponsorships, significant regulatory developments, and mainstream media interest, among other tailwinds (here is my recap from 2021). Even Activision—one the largest publishers in the world—started welcoming gambling companies as sponsors for its flagship esports properties, Call of Duty League and Overwatch League.
All of this discourse (including that of the sports betting industry maturing at a larger macro level) adds up to create a meaningful change in the way that stakeholders perceive sports betting.
It’s also hard to ignore the benefits legalized sports betting has brought leagues like the NFL, MLB, and NBA in the last few years in the form of sponsorship dollars, viewership, media rights, and fan engagement. While each of those interests are attractive on their own, engagement may be the most valuable to the larger gaming industry which now makes the majority of its revenue from in-game sales that are ultimately dependent on long-term player engagement and satisfaction.
The esports betting segment won’t be an overnight success, but it’s in a better position than ever before to grow as key stakeholders start coming around.
Bayes Esports enters Canada with Bet365 deal
Data supplier Bayes Esports is expanding into Canada through an extension of its agreement with Bet365.
The agreement will extend the pair’s coverage in Ontario, following Bayes Esports’ launch in New Jersey and Colorado.
Ontario is one of several areas in North America where esports betting is blossoming in, and the market, which has handled more than $4.3 billion since launching in April, is ripe for expansion.
COO and Managing Director of Bayes Esports Amir Mirzaee said the company is planning to eventually extend its services throughout the rest of Canada.
“To now also be registered in Ontario and to extend our partnership with bet365 accordingly feels like the cherry on top. I am certain other provinces will follow Ontario’s example and we will be able to offer live esports data to sportsbooks all across Canada in the near future.”
🗞 In the news
Rivalry CEO Steven Salz will be talking esports betting, next generation consumers, and more in a Twitter Spaces this afternoon with Gaming News Canada (Disclaimer: I am a full-time employee of Rivalry).
JustWatch launched a League of Legends streaming guide using Abios technology.
James Banks has signed on as an ambassador of GG.BET.
Bayes Esports’ Ondrej Silhavy talks esports betting with SBC.
📈 By the numbers
The 2022 League of Legends World Championships recorded a peak viewership of 5.1M, making it the most-watched LoL esports event of all time.
Call of Duty: Modern Warfare II banked over $1 billion in sales in 10 days since its release.
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