The Truth About Esports Betting

Posted by Harry Kane on Tuesday, January 30, 2018

When it comes to esports, the gap between perception and reality is probably larger than you could imagine.

To many, esports remains a fringe pastime, and one that will never boast the appeal or diversity to become a staple of the mainstream, online gaming market. In fact, some would even argue that it is a niche market sector that specifically targets dedicated video gamers, while offering little to casual players or universal sports fans.

The figures suggest that this is not the case, however, while these perceptions fail to consider that potential appeal of esports among betting fans across the globe. In this post, we’ll look at this in further detail, and ask whether esports and associated betting can grow to dominate the online gaming market?

An Introduction to Esports and Its Core Numbers

In simple terms, esports (also referred to as electronic sports) are played via virtual systems and networks, as individual gamers and teams compete in live tournaments for increasingly lucrative cash prizes. The esports market is currently dominated by the video game format, with console franchises such as Call of Duty, Dota, League of Legends and FIFA accounting for hundreds of tournaments and millions of dollars in prizes every single year.

Now, while competitive esports and video game tournaments have existed in rudimentary formats since the early 1970s, it is only during the last five years that it has enjoyed truly exponential growth. In fact, 2017 showcased year-on-year growth of 41.3%, with the global esports economy having achieved a staggering turnover of $696 million during the last year.

Similarly, brands spent a record-breaking $517 million into esports endeavours last year, more than half of this used to secure lucrative sponsorship deals. This cumulative investment is also expected to double by the end of 2020, which will in turn allow for higher cash prizes and more immersive levels of marketing among potential fans.

This will also drive an increase in consumer spending, contributing to a forecasted market size of $1.5 billion in two years time.

Of course, the ability to offer lucrative cash prizes will help to maintain and expand the core, esports player base, which is central to the success of the market. During the last year, 16,124 players competed across a total 3765 tournaments, which in turn paid out total prize money of $110,659,642. This equated to an average tournament prize pool of $29,391 and median player earnings of $6,863, so renewed investment will help a growing number of competitors to build a career out of esports and raise the profile of the market as a whole.

What About Esports Betting?

Now, while there are a number of bookmakers that enable punters to bet on esports tournaments across the globe, wagering in this space remains a relatively untapped opportunity. After all, esports revenues and financial figures do not account for the amount wagered by fans every single year, while the concept of placing bets on competitive gameplay in this space is not yet accepted within the mainstream.

Still, just as live streaming platforms like Twitch and ESPN (and the aforementioned increase in brand investment) have helped to incentivise players and promote esports among serious console gamers and casual viewers; bookmakers can play a pivotal role in engaging a more mainstream audience.

At present, esports betting odds are only available for a select few games and tournaments, including stellar franchises such as Dota, Starcraft and League of Legends. This restriction is largely dictated by demand, as tournaments involving these games tend to benefit from more immersive promotions and the most inflated prize funds. The last year saw a total of 155 Dota 2 tournaments played out across the globe, for example, in which 927 players took part for total prizes in the region of $38 million.

Despite these restrictions, some bookmakers have reported that esports are already their seventh-biggest sport in terms of betting volumes, placing it ahead of golf and tennis in the current market. So, by investing heavily in the promotion of esports and building demand for a wider range of esports games, brands can begin to realise the true potential of this market on an international scale.

Market leading esports bookmakers such as Betvictor have already blazed a trail in this respect, by offering competitive odds on a diverse range of esports tournaments. Betvictor have also increased their own market share by developing a wider range of esports betting markets, while tailoring their promotions to incentivise gamblers and encouraging them to participate within this niche. Even traditional, high street bookmakers such as Ladbrokes and William Hill have expanded aggressively into this space, which is a clear sign that esports betting is beginning to break down barriers and earn appeal in the consumer mainstream.

To truly propel esports betting into the mainstream, however, brands must place a clear focus on educating punters and delivering detailed advice on how to place wagers in this market. While there is a great deal to be said for expanding betting markets and offering customers the best possible odds and promotions, this means little if people are unsure of how to leverage these to their advantage.

The most important element of this is explaining the betting odds associated with esports, which are slightly different to those that underpin traditional markets. Let’s say that you want to back a specific team in a competitive CS:GO match, for example, and bookmakers are advertising odds of 1.60 for the win. If you stake £20 on this outcome, how do you determine your potential returns and precise odds of winning?

The simple method to calculate this is to divide your total stake by the odds provided, which in this instance would deliver a return of £12. In contrast, odds of 2.5 would trigger a pay-out of just £8, and understanding these odds enables you to work out exactly how much you can expect to win and determine which team is the bookmakers favourite to prevail.

If mainstream bookmakers can breakdown the complexities of esports betting while continuing to expand their available range of relevant games, promotions and betting markets, there is every chance that esports will become of the most wagered marketplaces anywhere in the world.