Rant

eSports: Revenue and the Gambling Effect

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There is no doubting the legitimacy of eSports now.What was once a niche group of elite gamers has grown into a worldwide phenomenon. So much so that it has become an entire industry all unto itself.

It isn’t just LAN competitions for a few bucks in a prize pool anymore. Nowadays, tournaments are fully backed by sponsors and held in arenas and convention centers around the world with thousands of dollars per placement in the standings on the line. With this kind of organization, it wouldn’t be long before Las Vegas and online betting sites got their slice of the pie. You can read a review for most major online betting sites to ensure you are getting the best information.

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The Outlook for eSports Revenue

Global eSports revenue is expected to blast past the 1.1-billion-dollar mark in 2019. This is somewhere in the neighborhood of a 27% increase from 2018.

Let’s do a quick comparison to real sports: MLS is emerging as one of the world’s top-10 soccer leagues. In 2018 it was estimated that per franchise revenue average was $32,000,000.00US. So, if we times that by 24 teams, we end up with roughly $768,000,000.00US in actual revenue for the league.

  1. eSports hit $865,100,000.00US in 2018 so, as a global market, it is already outperforming a top sports league. Granted, MLS is still growing and is likely to hit some pretty phenomenal numbers as well, but eSports is outpacing the soccer league and many other professional sports leagues for that matter.

Ok naysayers may say that we have to look at this more specifically. eSports is all-encompassing and there are various leagues within. It’s kind of like comparing the entire world soccer (football) market to say the MLB by itself.  FIFA generated 6.1 billion in the last World Cup alone. Still, given some time, we are likely to see individual leagues compete other individual sports leagues.

Dota 2, League of Legends, CS: GO, Overwatch, and StarCraft II are share leaders sucking up millions of viewing hours each. Media rights up over 48% topping more than 250 million dollars per year.

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Betting Revenue

With the media so heavily involved popularity is ever-increasing, which also means that more and more people are going to join in on the action via betting on matches and tournament outcomes. In 2018, eSports betting revenue topped $6,700,000,000.00US and is expected to triple to $20,000,000,000.00US by 2020. Let’s write that out so that it sinks in … Twenty Billion Dollars. These numbers are mind-blowing.

With such massive increases in betting revenue, media rights revenue will also increase. Sponsorships are likely to increase along with TV advertising as well, just like we are seeing with the increased revenue in traditional sports with the legalization of gambling in the US.

ESports has already become a massive industry that is creating traditional and niche jobs in mass, but the projected growth in betting takes this to a whole other level. Now there will be even more jobs and projects created for data collection, additional third-party apps, and services.

With legalization pending in the United States, the potential is almost limitless. We are going to see massive gambling revenue growth no matter what. But the USA is on the brink of near complete legalization of gambling and when this happens the growth projections turn into a calculus that could be exponential.

Get ready because eSports is going to be broadcast on primetime TV and be a household norm within the next couple of years.

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