Over the past decade, eSports (organized, multiplayer video game competitions) has grown from a niche hobby to a major worldwide phenomenon. Audiences for top tournaments number in the millions, rivaling traditional professional sports. This meteoric rise has consequently led to an exponential increase in eSports betting. Once relegated to gray markets and skin gambling, mainstream sportsbooks now routinely offer odds on major eSports tournaments like the League of Legends World Championship and the Dota 2 International. The industry is even attracting celebrity investors like Mark Cuban, owner of the Dallas Mavericks.
Industry Exploding in Popularity
While still a fraction of traditional sports betting, the eSports wagering market has grown by leaps and bounds. In 2020 alone over $23 billion was bet on eSports tournaments—nearly double from just a year prior. And that tally is expected to reach $75 billion by 2027 as betting on Polestar video gaming continues its ascendance into the mainstream. More evidence of this growth is the proliferation of bookmakers offering eSports odds today compared to just a few short years ago. From niche sites to household names like DraftKings and FanDuel, it seems every sportsbook now caters to eSports bettors in some capacity.
| Year | eSports Betting Handle | Growth (YoY) |
| 2020 | $23.5 billion | +160% |
| 2021 | $35.9 billion | +53% |
| 2027 (projected) | $75.7 billion | +111% |
[Source: BusinessWire]
The incentives are clear for sportsbooks—competitive gaming presents a demographic skewed young that conventional sports have struggled to capture. By embracing eSports betting, bookmakers have an avenue to establish brand loyalty among Millennial and Gen Z bettors.
How eSports Betting Compares to Traditional Sports
To the uninitiated, eSports can seem intimidating. But the reality is fans bet on eSports much like any other sport. Straight wagers—picking the winner of a match or tournament—are common. Point spreads are also standard, adjusting the margins to level an uneven playing field. Even over/under bets on map durations or total kills/assists are prevalent in games like DOTA 2 and League of Legends.
Where eSports betting deviates from traditional sports is the proliferation of in-game prop bets. In basketball, you may wager on how many assists LeBron James tallies. In Counter-Strike: Global Offensive (CS:GO), you can bet on the specific performance of individual players. How many kills will s1mple record? Who will be the top fragger in a given map? These micro-propositions are unique to eSports and especially appealing to devoted fans.
Challenges Facing a Burgeoning Industry
For its tremendous upside, this fledgling market faces myriad challenges both familiar and distinct. Operational integrity and fraud prevention remain paramount as with any sports betting sector. Ensuring fair play and protecting consumers against abuse are pivotal to long-term viability.
However as a digital industry centered around video games, eSports and betting face unique risks. Cyberattacks and DDoS threats are constant menaces, vulnerability exacerbated by an online-only ecosystem. This can be disastrous given the need for uninterrupted real-time game streams. Additionally rampant leaks of insider information undermine public confidence in line integrity and demand rigorous oversight.
Above all, skepticism around competition integrity threatens to undermine eSports betting entirely. Allegations of match-fixing or cheating can irreparably tarnish viewers’ trust. Just one high-profile scandal could set the entire industry back significantly. Unlike traditional sports, eSports lacks established governing bodies to take decisive action against such misconduct. Each publisher currently oversees its own titles but no independent league office exists to regulate competitive gaming holistically. Until uniform standards emerge, eSports betting stakeholders must be proactive and vigilant in protecting product integrity.
Outlook Going Forward
In light of its explosive growth trajectory, the future looks decidedly bright for eSports betting. By embracing this burgeoning industry, bookmakers have set themselves up favorably to engage future generations of bettors as conventional sports wagering plateaus. While challenges persist around oversight and product integrity, all indicators point to competitive gaming becoming a mainstay of the 21st century sports betting landscape.