Esports goes by many monikers – eSports, e-sports, electronic sports, etc. – but it generally refers to any competition involving video games. More specifically, esports is a form of entertainment characterized by organized multiplayer video game tournaments between professional gamers. The competitions have spawned an entire market – esports betting, where bettors wager on the outcomes of these events. Over the years, esports betting has grown so popular and lucrative that experts are debating whether it could eventually surpass traditional sports betting.
Here is a closer look at the market, its value, and several factors that seem to be driving its growth.
Value by Device Type
In 2020, the majority of the revenue earned by the esports market was attributed to consoles. Gamers seem to prefer this device for playing because of the high quality graphics, high security, and large screen benefits it offers. The esports betting market, on the other hand, gained much of its revenue from mobile phones. Bettors find it easier, faster, and more convenient to bet on esports tournaments on their mobile devices. In response to this, many platforms are adapting their esports betting services to mobile phone apps like the betway app from Betway to expand their reach.
Total Market Value
The increasing popularity of streaming in video gaming has been a key driver for the esports market, catapulting it to the global platform. Recent reports valued the global esports betting market at $671.78 million in 2022. For a forecast period ranging from 2022 to 2028, the market is expected to grow at a 26.16 percent CAGR to reach $2709.03 million. A similar report valued the market at $924.34 million in 2020, with esports expected to grow at a 17.5 percent CAGR to reach $4,758.99 million by 2030.
The esports betting market is facilitated by sports betting platforms that stream live tournaments and provide betting odds for active and upcoming games. Over the years, top providers like Betway have diversified their offerings to include major competitive titles like DOTA 2, LoL, and FIFA, among others. This increased availability has helped make esports betting more mainstream.
Esports Betting Around the World
In terms of participants, over 523 million people consumed esports and esports betting services in some form or the other in 2022. This number is expected to grow to 640 million by 2025. Europe accounts for a significant portion of this statistic, with multiple active esports betting markets across the continent, particularly in Germany and the UK. North America and Asia are also major players, accounting for 20 percent of the market revenue.
The Asia Pacific is expected to become an even bigger contributor to the esports market in coming years. This is due to the large population in the area, which is connected to the vast number of mobile subscribers – and large market – available for esports providers. Additionally, the Asia-Pacific region is the world’s largest contributor of internet subscribers, which is key for online gaming and betting.
The Future: Mobile Gaming and eSports
Mobile gaming has experienced consistent market value growth in the past decade, recently overtaking console and PC gaming. As smartphone use continues to penetrate different economies, the betting market is growing along with it. The convenience and cost affordability of these devises means that betting is no longer restricted to a lucky few – more people can access esports betting platforms across the globe. According to experts, this will see the esports betting industry grow exponentially in the coming years. So as valuable as the market is right now, it will only grow more lucrative.