According to a recent article by VentureBeat, esports betting is on pace to exceed $8 billion in total wagers this year. This has produced $560 million in revenues at an industry average margin of 7%.
The piece also said that over $16 billion will be wagered over the next few years. For comparison, an estimated $1 billion in revenues were earned in 2019 for all of esports.
“Online gambling has spent more than 20 years focused on traditional sports. Creating and curating the optimal offering, marketing schemes, and bonus/reward programs,” the article reads. “Converting brick and mortar bettors to online ones. Over that period gambling regulation has evolved, sports fans have aged, and the market has become relatively saturated with operators. The emergence of esports as a sport, and consequently, a betting market, represents the first instance in a long time of a new generation entering the fold. This is unprecedented and the interest from the traditional gambling world is immense. For the first time, they are facing a generation born and bred on the internet. Solving for that when you have spent so long solving for the inverse is challenging. It means a window of opportunity is open for new operators, new investors, new strategies, new ideas, and it’s incredibly exciting. All that said, it’s a thrilling time to be in esports, betting, and the development of sports and media for the next generation. This is just the beginning.”
(All information was provided by PR Newswire)