In 1992, a nationwide ban on sports betting called the Professional and Amateur Sports Protection Act or PASPA was passed.
This ban included esports. It would continue to ban betting on sports and esports until May of 2018.
Since then, individual states received the right to ban sports and esports betting at their own discretion. The results have been significant.
Esports betting has exploded across the country with the exception of some state restrictions. With gambling laws relaxed across the country, betting esports could unlock significant entrepreneurial opportunities. Read on to learn more.
A Rapidly Growing Industry
Esports is a new industry with a short history of significant growth.
The numbers speak for themselves. In 2018, wagers would reach a total of $7 billion and this was expected to double by 2020.
This is good news for the individual fans wondering how much they can actually make with betting.
The industry is contingent upon viewership and this ultimately affects bet stock. Viewership is expected to reach 495 million people globally in 2020.
Esports could potentially skyrocket in revenue if accepted into the 2024 Olympics. The International Olympic Committee is currently considering this.
How the Times Change the Industry
The coronavirus pandemic has undoubtedly played a role in the prospect of esports industry growth. The world of sports has turned its attention to the online space.
With the cancellation of traditional sports, viewership and betting have increased in esports.
Amid the crisis, the esports industry has proven particularly resilient by moving competitions to the online space. This also improves accessibility for users.
Ethics and Integrity Culture Improves Industry Growth
Promoting integrity in esports further establishes its legitimacy as a market. The industry’s standard of ethics can be misunderstood because of its lucrative potential.
However, fans, players, and corporate parties can all agree that industry ethics are crucial to its survival.
One renowned streaming platform, Steam, introduced the Valve Anti-Cheating System (VAC) in 2002. Since then, it’s become a more and more relevant tool in the quick rise of the esports industry and scans the player’s computer for cheats.
Other platforms have implemented similar software to catch dishonest playing schemes.
The goal is to promote a healthier gaming ecosystem. However, the deeper goal is to rid the gaming of experience of threats like cheating. The betting industry statistically relies on honest gameplay.
An imbalance here disturbs the entire ecosystem. This is why anti-cheating is a serious community offense that can merit fines and even jail time in some cases.
This opens up a market for anti-cheating software and technology.
Safe and Legal Betting
It’s important that betting esports is considered to be safe and legal by everyone involved.
Participating in esports betting requires some awareness of suspicious betting practices. Understanding the differences between nefarious and reputable sites is key to the process.
One of the most distinguishable features is gambling licenses. A legitimate site will have all the necessary gambling licenses in place.
Good sites should also have helpful resources like encryption that protects user data. Customer service is also helpful for resolving any user issues.
As esports continues to support greater efforts towards security and legitimacy, this can only help the industry grow in credibility and marketability.
Esports Betting Creates New Outlets of Attention
In 2017, PlayerUnknown’s Battlegrounds or PUBG was one of the most viewed games on Twitch. Games that use the same battle royale style continue to the some of the top games are popularly assumed to encourage esports betting.
This indicates that the game style can largely influence the scope of the betting scene and whether it will attract viewership.
Statistics and Analysis is Essential to eSports Entrepreneurship
Conversely, the game style does not solely determine viewership and betting culture success. Real-time data and game statistics are also a large part of betting.
Data allows bettors to make more informed decisions before even handling their money. This suggests a form of strategy in the esports betting culture and shapes the way that may continue to industry operate.
With this in mind, bettors can take a more calculated approach based on player behavior and dynamics. Since this potentially increases accurate decision-making, the analytical side of sites is considered part of the entertainment along with the game itself.
The corporate markets and wager decisions are additionally largely based on individual bettor’s knowledge of the competition’s structure.
Opportunity for Advertisements in Betting Esports
Brands have an opportunity to capitalize on the mass attention that esports gathers.
The amount of popular brands continues to grow each year and the list includes major names like Geico, Gillette, Snickers, Monster, and Tinder.
Since brands outside of gaming products or services are starting to invest in the esports industry, this has the potential to spur even more non-endemic brands to invest.
This simply means that esports is growing beyond gaming culture and reaching a wider audience. Even brands like Adidas that typically sponsor traditional sports have noticed this growing industry and gotten involved.
With large attention gatherers like events and live streams, brands are starting to realize the marketing potential in esports.
Clearly, esports open up entrepreneurial opportunities for industries beyond gaming.
New Industry, New Entrepreneurial Potential
There’s a wealth of evidence proving that the esports industry is one of the fast-growing industries. Not only is the betting esports industry growing globally, but across different age and interest demographics.
In addition to this growth, esports have sparked a move to the mobile space which could dramatically impact the way that investors can market their brands.
Esports betting is literally changing the world by attracting an ever-growing audience and businesses looking for even more exposure with professional gamers.
It’s opened up opportunities for a variety of brands and fans to contribute to the esports and professional gaming culture. E-sports betting has also grown gambling options for people to enjoy in addition to Indian betting sites and online casinos.
To read more about how industries are shaping business and entrepreneurs, check out more of our articles. Visit the Technology and Business sections of the Everything Entrepreneur Blog to learn more about more new changes to the entrepreneurial landscape. We also have a wide variety of e-sports and gambling articles in our blog archives.