Esports betting is a rapidly-emerging industry, capturing the interest of regulators worldwide. While in certain regions it has been fully legalised and regulated, others still consider it illegal or at best gray areas.
Betting on esports provides bookmakers with new opportunities to expand their offerings and engage with esports audiences; however, this new form of gambling raises serious concerns regarding match-fixing, underage gambling and addiction.
Legality
Esports betting has experienced rapid expansion over recent years and little is understood about those who engage in this form of gambling. This study sought to assess whether esports bettors differed significantly from other gamblers in terms of risk for problems and harms associated with their activity; 298 esports bettors and 300 sports bettors regularly wagering traditional sports were surveyed for this research and then compared on demographics, gambling involvement levels, problem gambling incidents, and harm caused by gambling-related harms.
Participants were predominantly young adult males, in line with previous research indicating that esports bettors tend to be younger and more likely to be male than non-gambling controls. Esports bettors also were more likely to possess university educations and be employed than non-gambling controls; additionally they were more likely to possess Asian backgrounds or speak other than English at home than non-gambling controls.
Esports betting, though technically gambling, has long been shielded from legal scrutiny due to not involving real cash currency wagering. Instead, esports bettors use “skins”, virtual game items which can be traded and used within in-game context. Third-party websites facilitate this practice and serve as markets for esports gambling markets worldwide – which has proliferated popularity exponentially!
Regulation
Regulatory concerns surrounding esports betting have arisen due to its rise. Regulations must strike a balance between consumer protection, responsible gambling practices and fair play; this can be especially challenging in countries where esports gambling is not legal. Furthermore, due to unique characteristics within esports like virtual currencies being traded between players for gambling money – making it hard to ascertain the true value of an individual player’s skills and knowledge.
Regulators can assist esports bettors by mandating identification verification and age validation processes. This will prevent underage players from placing bets while also helping monitor player activity and behavior. Furthermore, regulators must consider esports betting’s potential role as an entryway into more traditional forms of gambling.
Recent research examined gambling motivations associated with three emerging products – esports cash betting, skin betting and online video game gambling. Results suggested that esports bettors were more likely to engage in problem gambling and experience harm than sports bettors due to their younger age and gender composition; additionally they tend to engage in gambling for financial and coping motives more frequently. As such, further investigation is required into these products’ role within populations – longitudinal research would help us better assess esports betting’s effects on developing gambling problems as well as potential harmful outcomes.
Market share
Esports gambling is an ever-evolving market that could soon reach billions. Many companies in this sector have already capitalized on the growing popularity of esports by signing sponsorship contracts and developing new revenue streams. While there are hundreds of titles within esports gambling, most iGaming companies focus on three core ‘tier-one’ titles – CS:GO, League of Legends and Dota 2. These games command worldwide popularity from players.
Market share for eSports betting is expected to expand as its industry becomes more mainstream. The COVID-19 pandemic has given an extra push, as more people search for alternative forms of gambling; and with its international accessibility, eSports betting provides another avenue of gambling that many can participate in.
ESports betting websites can take advantage of this situation by offering multiple payment methods, including cryptocurrency. Furthermore, blockchain technology will enable players to place bets instantly without the need for traditional bank accounts.
Even as its popularity increases, esports betting remains an emerging industry with limited research into its effects. An Australian study comparing adult regular esports bettors and sports bettors found that the former were more likely to be young males; more likely employed; possess a university degree; and spoke a language other than English at home.
Future prospects
Esports betting is an emerging phenomenon that has quickly grown since its introduction. While it remains legal in some regions, its rapid expansion is drawing the interest of regulators worldwide and projected to continue growing as more countries implement regulatory frameworks for it.
Esports betting has gained enormous popularity due to its innovative gaming experience. Instead of traditional sports betting, bettors place wagers on professional video game competitions through numerous online platforms that specialize in this form of gambling. Esports betting has attracted new bettors who appreciate digital games with competitive gameplay that draw them in.
As the industry evolves, it will be fascinating to witness how traditional sports betting companies respond. Some may embrace it while others will try to capitalize on its rising market by creating their own esports betting products.
Recent studies compared esports bettors with traditional sport and non-sport gamblers, showing they exhibited more high levels of gambling problems and harm than their sports bettor counterparts. Furthermore, skin gambling was more likely used among them as were illegal forms like poker machines.
