The interest in betting on esports began to shoot up in recent years, even more so during the Coronavirus pandemic. The reduced number of live events during the past two years made many punters look for an alternative, and wagering on esports filled that need.
Therefore, it comes as no surprise that the esports industry is growing and developing so quickly since 2020. More and more regions are now reportedly seeing how the market matures at a breakneck speed, and the massive increase in the revenues goes to reflect the heightened interest.
Now, let’s dive into the prospects of esports betting to reach an all-time high in total wagers this year.
Participation in Esports Betting around The Globe
According to a survey made last year, betting on esports has started to take off, all the more so after the Coronavirus outbreak. In fact, the virus’ contribution to the ever-growing popularity of esports should not be passed over as betting on this market was used to fill the gap caused by the lack of regular betting opportunities. According to the available data, around 6.5 million people are interested in betting on esports.
As it turns out, back in 2021, Australia was the country with the biggest share of punters who engaged in wagering on esports. According to the data from the survey, approximately 16% of the people threw themselves into betting on virtual sports. The USA comes afterwards, and there, around 15% of punters engaged in esports. In terms of participation, India goes close behind Australia and the USA as the share of esports bettors was estimated to be in the neighbourhood of 14%.
What is rather surprising about the engagement rates in esports is the significant difference between these three countries and the share of people who chose to bet on esports in Canada, Germany, and the UK. During the last year, betting on sports in Canada and Germany was not such a hugely enjoyed pastime as it was in Australia or the USA, as the share of punters who got involved in such activities was around 6%.
The most noticeable difference can be seen in the activity rate of the UK as there, only 3% of all people who took part in the survey pointed out that they bet on esports.
Development of The Esports Industry in 2022
The projections are that the US esports betting market will reach $37 billion by 2025, which compared to the current market size of around $9 billion, will be a fourfold increase. As for the global value of the market, it is projected to go well beyond $13 billion by 2025. Just for comparison, the value of the esports industry back in 2019 was estimated to be approximately $800 million.
In 2021 alone, the revenues the international esports industry produced reached $1 billion, which is an increase of almost 15%. Naturally, the most important factor for the rapid growth of the esports industry was that hardly any sports events were held.
It is also interesting to point out that during the pandemic, the number of people who go in for betting on esports for the first time is heavily on the rise. This rings true, especially when it comes to fans of video games. As a result of the increased attention esports got, gaming operators needed to respond to the growing demand and guarantee that the coverage of the events is up to scratch and the lines are competitive. Interestingly enough, the interest in esports is so great that such events even surpassed some real-life sports events.
The size of the esports betting industry is expected to continue growing in 2022, and experts expect that the revenues the industry will produce might almost double, thus reaching around $1.8 billion. It is safe to say that the industry will continue to flourish this year but predicting the actual number cannot be done in a walk and with great precision largely because of the global pandemic. Some experts go even further and say that the esports betting industry will generate revenues of well above $205 billion.
In spite of the fact that the esports industry has seen massive growth during the past few years, it is still far from seeing the increase in the turnover the video gaming industry marks. Just for comparison, the video gaming industry generated revenues of more than $175 billion during the last year.
As it turns out, there is a tendency that fans of esports are usually younger than punters who are interested in traditional sports. Because of this, gaming operators need to go to great lengths in order to circumvent the dangers underage gambling can bring in.
It is also worth mentioning that betting on esports through portable devices is also expected to be on the way up. In addition to this, the popularity of esports is expected to spread to several new regions. Betting on esports is expected to flourish in the Middle East, North America, as well as Southeast Asia.
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