The world remains at a global standstill with the very real threat of COVID-19\u2019s continued spread and resurgence still looming. Mandated physical closures and the suspension of large gatherings have put many businesses and industries in a position of crisis.<\/span><\/p>\n
Digital infrastructures have become universally adopted as a strategy for companies to remain in an active state; for some, it\u2019s a workable solution, while for others, it\u2019s a near-impossible endeavour to navigate.<\/span><\/p>\n
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The gambling industry, in particular, has seen its casino floors closed worldwide, while sports betting opportunities are hard to come by, with few sports being played at all. More concerningly, the current climate indicates this breeze won\u2019t move in the other direction anytime soon, either.<\/span><\/p>\n
It\u2019s a dire time for betting operators, yet the circumstances seem to create a perfect storm for esports to ignite. As one of the few human competitions left standing in wake of COVID-19, lightning perhaps won\u2019t need to strike twice for esports and its glowing betting handle.<\/span><\/p>\n
Competitive gaming is finally starting to bake in the global gambling market, but will it be more than just a flash in the pan? Esports Insider will discuss this very topic in part two of this ESI Gambling Report, powered by EveryMatrix<\/strong>.<\/span><\/p>\n
It\u2019s not how trailblazers of the esports industry would have thought or hoped for, but it\u2019s certainly undeniable witnessing the proliferation of gaming amid government shutdowns and mandatory stay-at-home orders.<\/span><\/p>\n
Key stakeholders in the traditional sports business, such as the National Basketball Association, Major League Baseball, NASCAR, and Formula 1, are turning to gaming as a solution for lost programming and content. As a result, esports has seen impressive volumes of high-profile celebrity endorsements flood the space like never before. Virtual Grand Prix is securing air-time on ESPN, Fox Sports, NBC, and Kayo; while in Finland, professional hockey leagues migrated to NHL 20 and for the first time, settled finals on digital ice.<\/span><\/span><\/p>\n
As far as receptiveness goes –\u00a0 it\u2019s been impressively positive. Formula One\u2019s Esports Virtual Grand Prix, for example, was said to have orbited 3,000,000 online viewers.\u00a0<\/span>Formula One’s Head of Digital Growth and Esports, Julian Tan <\/b>commented on the success of the motorsport series\u2019 strong showing in <\/span>a SportsPro interview<\/span><\/a>:<\/span><\/span><\/p>\n
RELATED: ESI Gambling Report: Esports betting, a global lifeline for operators<\/a><\/b><\/span><\/p>\n
As we reviewed in <\/span>part one of this ESI Gambling Report series<\/span><\/a>, the global gambling industry is creating opportunities of its own within the esports panorama. According to <\/span>Luckbox CEO, Quentin Martin<\/b>, the forecast is sunny with a <\/span>definite<\/span><\/i> chance of esports.<\/span><\/span><\/p>\n
According to <\/span>a report conducted by consumer research agency <\/span>2CV and market researcher ProdegeMR<\/a>, esports gambling revenue is poised to double from the $7 billion (\u00a35.8 billion) earned in 2019 worldwide to over $14 billion (\u00a311.5 billion) in 2020 as a direct result of the coronavirus outbreak.<\/span><\/span><\/p>\n
RELATED: <\/b>Midnite joins Esports Integrity Commission<\/b><\/a><\/span><\/p>\n
Globally, sports betting revenue is estimated to be worth more than $220 billion (\u00a3180 billion), <\/span>per IBIS World<\/a>. If these valuations are on par, esports will still only capture a small fraction of the market at large. However, esports could be set to do more damage down the line considering the industry\u2019s heightening trajectory and pace.<\/span><\/span><\/p>\n
While unimmune from the effects of COVID-19, the versatility of esports in a digital world has helped its betting precinct experience tremendous growth. Once an overlooked genre of betting, competitive gaming has become the subject of international conversation. Especially in areas such as Sin City, it\u2019s become more than just talk.<\/span><\/p>\n
Starting in late-March, the Nevada Gaming Control Board has issued a record amount of esports betting exemptions, approving wagers for six different games across several tournaments and leagues. Since then, the gambling capital of the United States has provided more esports offerings in less than a month than the country had in the entirety of esports\u2019 lifetime.<\/span><\/p>\n
Regulatory procedures for exemptions have not changed, either. Rather, the shift has come from the operators themselves, sending the demand for esports soaring. Outside Belarusian football and table tennis, odds for sportsbooks to offer wagers on human competition are slim-to-none. It\u2019s a combination which has brewed a \u201cperfect storm\u201d for professional gaming according to <\/span>University of Las Vegas International Gaming Institute Research Director, Brett Abarbanel<\/b>.<\/span><\/span><\/p>\n
\u201cA major factor in why we didn\u2019t see such an influx of esports bettings approvals before was actually a somewhat limited lack of demand in the sense that the Gaming Control Board has a lot of things that it has to do,\u201d Abarbanel told Esports Insider. \u201cSo if there wasn\u2019t a huge demand from sportsbooks to accept wagers on esports, then it wasn\u2019t necessarily going to be one of their priority issues.\u201d<\/span><\/p>\n
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RELATED: <\/b>Nevada regulators approve ESL One Rio betting<\/b><\/a><\/span><\/p>\n
RELATED: <\/b>How esports bookmakers are marketing to potential bettors<\/b><\/a><\/span><\/p>\n
Within jurisdictions across North America where sports betting is legal, esports is pitted in a category which requires separate application and approval processes for operators to accept wagers on events. These exemptions were previously few-and-far-between, and admittedly \u201cnot a scalable way of running the business,\u201d <\/span>Unikrn CEO Rahul Sood<\/b> told <\/span>Global Gaming Business<\/span><\/a>. Now that the time is ripe, operators are looking to harvest a variety of esports offerings \u2014 but not without a degree of challenge.<\/span><\/span><\/p>\n
\u201cI think the reason that traditional operators haven\u2019t gotten into [esports] is because they just don\u2019t have the DNA to do it and the amount of investment was pretty high for them to jump into it because it is something completely new,\u201d Rahul said.<\/span><\/p>\n
When it comes to esports, there\u2019s a wide learning curve most major bookmakers seem to be behind the bend on. Perhaps underestimated to some measure, newcomers are often rudely awakened by the intricacy of competitive gaming and its lack of a parallel to the betting markets of traditional sports. For companies like Unikrn, however, who have been at the forefront of esports betting innovation, insight into the audience and the market\u2019s nuances can make all the difference when it comes to customer conversion.<\/span><\/p>\n
RELATED: <\/b>Midnite joins #HomeSweetHome event as betting sponsor<\/b><\/a><\/span><\/p>\n
May 1st figures delivered by Macau\u2019s Gaming Inspection and Coordination Bureau revealed casino gaming revenue dipped 96.8 percent year-on-year to a record low. These reports are startlingly common as well, and it’s just one example of how the pandemic has created blistering hardships for operators.<\/span><\/p>\n
With very few markets left to hold onto, esports truly has extended its hand to digital casinos attempting to survive the fall from COVID-19. Amid the panic onset by plummeting revenue, the rush to add esports as a product offering is creating a bit of friction.<\/span><\/p>\n
RELATED: <\/b>GRID & GameCo: Building an esports betting product for all<\/b><\/a><\/span><\/p>\n
One clear example of this occurred earlier this month when issues of integrity flared up around the <\/span>NBA 2K Players Tournament<\/span><\/a>. In an instant, <\/span>bookmakers suspended all bets on the event<\/span><\/a> when made aware of its results being leaked online. While still more of a miscommunication than a question of fair play, the incident highlights an obstacle esports is all too familiar with – competitive integrity.<\/span><\/span><\/p>\n
RELATED: <\/b>Nevada sportsbooks permitted to accept bets on League of Legends, Overwatch<\/b><\/a><\/span><\/p>\n
They\u2019re critical questions needing to be answered if esports hopes to someday swagger a competitive betting handle in the sports betting industry. An ESIC membership card can alleviate many of those doubts, but for a large share of the market, specifically within franchised tournaments, there simply isn\u2019t a definitive answer.<\/span><\/p>\n
It\u2019s easy for newcomers to pigeonhole esports as one thing, when in reality competitive games share vast differences between one another that mirror disparities between hockey and basketball, for example. It boils down to a lack of understanding, and it\u2019s something operators should be doing their homework on. Especially so because when it comes to integrity in esports \u201cyou really have to look at this game by game,\u201d according to Smith.<\/span><\/p>\n
RELATED: <\/b>EveryMatrix enhances offering to better accommodate esports<\/b><\/a><\/span><\/p>\n
While shortfalls in awareness can raise rightful concerns of their own, larger questions arise when you start to dig deeper into the labyrinthine of esports integrity. Conceivably surprising to many, there is a great stretch of uncharted territory at the corner of esports\u2019 largest leagues and betting markets. Without disclosures of integrity guidelines from the likes of industry powerhouses such as Riot Games and Activision Blizzard, establishing any independent assessment of a product\u2019s safety \u201cis very, very difficult\u201d in Smith\u2019s opinion.<\/span><\/p>\n
\u201cThere\u2019s no standards, there\u2019s no adherence to any kind of central idea of what\u2019s acceptable and not acceptable. What Blizzard\u2019s doing right now may feel to them perfectly adequate and good, but objectively may be garbage,\u201d Smith told Esports Insider. \u201cYou don\u2019t know for example Riot\u2019s internal procedures with respect to integrity in League of Legends is – only Riot knows that.\u201d<\/span><\/p>\n
On May 7, after ESI had spoken to Smith, <\/span>Activision Blizzard announced a landmark, multi-year partnership with sports data provider Sportradar<\/span><\/a>. The arrangement is said to implement \u201ccomprehensive\u201d integrity procedures and combat betting-related corruption in both the Call of Duty League and Overwatch League. The deal arrives at a crucial time for Activision Blizzard, which recently saw its pair of developer-operated leagues <\/span>receive blessings from the Nevada Gaming Control Board<\/span><\/a> for sportsbooks to accept wagers on.<\/span><\/span><\/p>\n
RELATED: <\/b>Sportradar tapped for Activision Blizzard\u2019s franchised leagues<\/b><\/a><\/span><\/p>\n
RELATED: <\/b>ESI Gambling Report: Sex, drugs and esports<\/b><\/a><\/span><\/p>\n
There\u2019s certainly a lot to unpack when it comes to understanding esports\u2019 stake in the global gambling market; especially now so that the market has been injected with adrenaline inadvertently by the effects of COVID-19. Matters are moving fast for esports and its betting district. While it\u2019s a development likely welcomed by a majority of surrounding industry stakeholders, the maturing market may be growing too fast for its own good.<\/span><\/p>\n
It would be wrong to say the growth of esports in the betting scape is at all damaging because contrarily, it\u2019s a catalyst for the entire industry. Rather, the unprecedented speed in which esports has penetrated sportsbooks around the world is now possibly highlighting some of its weak points, such as some of the lingering integrity concerns outlined by ESIC.<\/span><\/p>\n
RELATED: <\/b>ESI Gambling Report: Integrity fees in esports<\/b><\/a><\/span><\/p>\n
Consumer protection may not be top of mind for operators and industry drivers just yet, but it’s a topic that doesn\u2019t hit too far from home. Not long ago, an unregulated skin gambling market had once, like the current state of the world, hit pandemic proportions, and is incontestably linked to gaming. It\u2019s a can of worms waiting to be opened, but one that will feed the birds of prey as competitive gaming blossoms in the gambling market.<\/span><\/p>\n
RELATED: <\/b>ESI Gambling Report: Is Valve hanging on by the Skin of its teeth?<\/b><\/a><\/span><\/p>\n
It\u2019s why companies like the Committee of Advertising Practice (CAP) are in the background working ahead of future run-ins. On April 23rd, CAP declared its intent to <\/span>begin assessing the dynamics attached to betting-related esports advertising<\/span><\/a> on UK channels.<\/span><\/span><\/p>\n
If you\u2019re looking to sink your teeth into some of the latest gambling data coming out of the esports betting world, EveryMatrix has released a recent report on some of the key takeaways to take from esports betting over the last two months. Get the full report here<\/a>.<\/i><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
The world remains at a global standstill with the very real threat of COVID-19\u2019s continued spread and resurgence still looming. Mandated physical closures and the suspension of large gatherings have put many businesses and industries in a position of crisis. Digital infrastructures have become universally adopted as a strategy for companies to remain in an … Continued<\/a><\/p>\n","protected":false},"author":23,"featured_media":43941,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","esi_template":"default","excluded":false,"footnotes":""},"categories":[63,87,239,50,8717,237,240,15109,238],"tags":[],"class_list":["post-45677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial","category-gambling","category-europe","category-features","category-insights","category-news-by-region","category-north-america","category-research","category-uk"],"acf":[],"yoast_head":"\n