Operators and investors the world over are rushing into Esports and Esports betting in droves. Successful teams are garnering millions in investments, popular leagues are inking multi-million dollar advertising deals, and Esports betting operators are seeing unprecedented growth. In this post we’ll talk about the Top 3 reasons investors in Esports are bullish on this industry, which is emerging as a sporting and gambling sector in its own right.
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1. The Global Esports market tops $1 Billion in 2019, and is projected to grow to $2.5 Billion by 2025
In a 2019 study by Foley & Lardner surveying more than 200 Esports and traditional sports executives in the industry, the researchers found overall bullish trends for the Esports industry as a whole: increasing capital investment and engagement with wider audiences.
Investors are also increasingly jumping in. Respondents expect private equity and venture capital firms to increase their esports investments over the next year. That tracks with the launch of investment funds focused on esports, which would have been hard to imagine a decade ago. Traditional sports teams and leagues, athletes and celebrities are also expected to further increase their level of esports investment over the next 12 months. — Foley & Lardner, 2019
According to the survey, the group most likely to increase their investments in the Esports industry are “Traditional professional sports teams and leagues, athletes, and celebrities.” It’s safe to say that we aren’t too far off from major traditional sports teams and leagues embracing Esports, and launching their own professional teams. Celebrities and athletes may also find themselves investing and sponsoring Esports teams in the coming years.
Private equity and venture capital are not far behind. As long as the industry can continue to grow at such a fast pace, and garner high viewership among the 18–25 year old demographic, look to see bigger and bigger funds jump into the space in 2020 and beyond.
It’s clear to see why. The growth statistics for revenues are off the chart:
Any industry that is growing by 25%+ CAGR will attract investment. Period.
2. Esports betting is growing at a FASTER rate than Esports itself.
The betting industry around Esports is growing faster than Esports itself. A study conducted by Eilers & Krejcik Gaming reported that in 2019 and 2020 the volume of bets on Esports will grow a whopping 38% in each of those years.
Esports Insider reports that total betting volume on Esports topped $8 Billion in 2019, and is projected to top $20 Billion in 2020 — for an increase of nearly 2.5 times.
It is estimated that in 2020 bookmakers’ margin, which equals approximately 5 percent, will earn them $1 billion — that’s equivalent to the total amount of revenues of the rest of esports in 2019…Meanwhile, for 2019 and 2020, esports in general was projected to grow by about 27 percent and 22 percent respectively, and the forecast for 2022 is ‘just’ 14 percent. The difference is obvious, so while esports growth slows somewhat, esports betting growth looks set to remain much healthier. — Paul Brel for Esports Insider
BetProtocol is committed to launching its Esports betting module in Q2 — Q3 of 2020. Entrepreneurs who wish to launch an Esports betting app, with no coding required, can get into contact for the latest updates and pricing.
BetProtocol will offer wagering for fixed bets in 2020 and live betting later in the year for:
- League of Legends
- DOTA 2
With support for over 50 different leagues across 5 games!
3. Tournament Prizes are Growing and Already Top Millions of Dollars
The ESL Pro Tour for Counter-Strike : Global Offensive (CS:GO) will feature a total prize pool of more than $5 Million in 2020. Each arena tournament could net Esports CS:GO pros $250,000 to over half-a-million per event in prize money.
What about other games?
League of Legends Esports tournaments, when they began in 2010 and up until now, have paid out a total of $73.4 Million dollars across 2,405 events. The 2019 LOL Championship featured a prize pool of over $2.2 Million.
There’s a lot of money to be made in Esports and in Esports betting. We at BetProtocol are committed to bringing you the highest quality Esports betting experience to offer to your end users. If you have a great idea for an Esports betting app, get in touch!
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