From niche to mainstream, the rise of esports betting

News Team October 17, 2024

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From niche to mainstream, the rise of esports betting

Esports betting is no longer a niche activity reserved for a few dedicated fans. Over the past decade, particularly accelerated by the COVID-19 pandemic, betting on competitive multiplayer video games has grown into a global phenomenon. With traditional sports temporarily halted during the pandemic, esports offered a dynamic alternative for sports bettors and fans alike. The global esports betting market is projected to carry on growing, with estimates suggesting it could exceed $24 billion by 2028, reflecting a compounded annual growth rate of over 13 percent in regions like North America and Europe.

Esports’ emergence into mainstream

Esports’ growing popularity as a legitimate form of entertainment is illustrated by its increased integration into mainstream culture. The International Olympic Committee (IOC) recently announced the creation of the Olympic Esports Week, a major milestone in recognising esports on a global, prestigious platform. This shift signals esports’ crossover into spaces traditionally reserved for physical sports.

Popular games now boast massive international tournaments, propelling esports into the mainstream entertainment arena. Games like “CS:GO,” “Dota 2,” and “League of Legends” consistently rank among the top choices for bettors, especially during major matches. These events not only attract millions of viewers but also billions in wagered money.

Who is betting on esports?

While esports betting is expanding globally, some regions are leading the charge. The United States, boosted by state-level legalisations of sports betting, is one of the largest and fastest-growing markets for esports wagers. Analysts predict the U.S. esports betting market could reach $1.1 billion by 2028. Europe also shows strong growth, with Germany, the United Kingdom, and Sweden as key players. Meanwhile, in Asia, South Korea and China are driving significant revenues, where the gaming culture is deeply ingrained.

Esports fans tend to be younger than traditional sports bettors, with the average age of an esports spectator being 26. This younger demographic is tech-savvy, enjoys video games, and has a strong connection to the digital world. Men currently make up the majority of esports bettors, but as esports becomes more inclusive, the gender gap may narrow.

A larger trend

The rise of esports betting is strongly connected to the broader expansion of the gaming industry, particularly driven by the rapid growth of the online gaming sector. Online casino games, in particular, continue to hold a significant share of the global gambling market, contributing to this overall trend. “Online casinos are growing in popularity because they offer a rich selection of games offering a positive gaming experience on mobile, PC, and tablet,” explained Techopedia. In the U.S. alone, the online casino market is projected to grow at a CAGR of 16.4 percent through 2028, and in Europe, particularly in countries like the UK, online casino games have become a major component of the iGaming industry.