Over the past decade, the spectacle of multiplayer video game competitions has transformed from a niche interest into a full-fledged cultural and economic powerhouse. As competitive gaming – colloquially known as "e-sports" – has proliferated in popularity, so too has wagering on the outcomes of professional matches and tournaments. This convergence of entertainment and betting represents a rapidly ascendant market, one expected to reach revenues of $20.7 billion by 2027 according to Research and Markets. Propelled by shifting generational interests, broadcasting innovations, and gambling ecosystem changes, e-sports betting finds itself perfectly positioned to unlock substantial value in years ahead.
Mainstream Emergence of Competitive Gaming
While informal video game at Casino Mr Green contests date back to the medium's origins, corporate and tournament organizing infrastructure has allowed modern e-sports to blossom into a global phenomenon. Once relegated to dim backrooms and niche events, top-tier professional play now fills stadiums and attracts vast broadcast audiences. Market researcher Newzoo estimates that there are approximately 200 million e-sports enthusiasts worldwide in 2022, with that figure forecast to swell to 347 million by 2024.
Driving this growth is a demographic tidal wave of young and internet-native fans. Per Goldman Sachs, about 75% of e-sports viewers fall between the ages of 18 and 34. Having grown up playing and spectating games online, this cohort is now old enough to legally wager in many jurisdictions. Their comfort with video games and digital entertainment primes them to engage with betting in ways unlike prior generations.
Rapid Mainstream Betting Adoption
Wagering and video games have had an intertwined history, seen in genres like poker and horseracing simulations. However, betting focused squarely on the outcomes of professional e-sports has rapidly emerged over the past five years in parallel with the industry's viewership uptick, details here:
|
Year
|
Estimated E-sports Betting Handle
|
Growth vs Prior Year
|
|
2021
|
$8.37 billion
|
+41.5%
|
|
2022
|
$12.82 billion
|
+53.3%
|
|
2023
|
$19.0 billion
|
+48.2%
|
Betting firms like DraftKings, FanDuel, and Betway have integrated e-sports wagering into their platforms, allowing bettors to place moneyline, spread, or prop bets on matches across games like League of Legends, Dota 2, and Counter-Strike: Global Offensive. Enthusiast sites such as Unikrn have likewise leaned into serving e-sports bettors.
These bookmakers have benefited from the broadcasting evolution that has widened competitive gaming's reach. As entities like Twitch and YouTube Gaming have made video game streaming ubiquitous, fans have gained easy access to events on which to gamble. Wagering has become part of the viewing lexicon for a segment of spectators.
Outlook for Continued Growth
Multiple factors indicate that e-sports betting still remains in its infancy with abundant headroom for expansion. As young viewers age into legality, awareness spreads to older demographics, and video game competition viewership continues rising, the foundation for growth looks solid. By one estimate from BOS, the number of e-sports bettors globally should nearly double from 5 million in 2020 to 9 million by 2023.
Legalization also stands out as a primary driver for unlocking e-sports betting market share, demonstrated by surging revenues in newly-regulated jurisdictions like New York and Ontario. As more states and countries establish regulatory frameworks, even greater swaths of bettors will gain access to e-sports odds and markets.
Finally, continued innovation from bookmakers in crafting betting experiences tailored specifically to competitive gaming aficionados should further stimulate engagement. Features like live in-game odds, more prop bet variety, and parlay offerings all stand to ratchet up handle volumes.
Conclusion
In total, the pieces appear in place for e-sports wagering to continue riding its steep growth trajectory over the back half of this decade. Its popularity with younger demographics in particular cements its status as the likely next major betting vertical. Demonstrating the optimism underpinning forecasts, Goldman Sachs projects that e-sports will overtake sports like baseball and ice hockey to become the third-largest betting category by 2022 handle. If current adoption patterns persist, competitive gaming could establish itself as a gambling staple for generations ahead.
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