Esports, or electronic sports, refers to competitive video gaming tournaments. It has grown rapidly from niche interest into a billion-dollar industry, with global audiences now rivaling traditional sports. This spectacular rise has opened up opportunities not just for players and teams, but also bookmakers.
Surge in Popularity Drives New Betting Interest
As more people start watching esports on the Bet442 platform, interest in esports betting has also grown. Market research group Newzoo found the total esports audience will reach 495 million people in 2021. That’s a nearly 50% increase from 2020. This widening appeal is driving more betting activity.
Popular esports tournaments like Dota 2’s The International, League of Legends World Championship and CS:GO Majors now see over $100 million wagered on their outcomes.
Analysts predict the market could be worth over $20.7 billion by 2027. This is up from just $650 million in 2020.
Official Data Shows the Scale of Growth
Official betting handles reveal how many esports wagering has increased in recent years. These figures represent total amount staked with sportsbooks:
| Year | Total Handle | Increase (%) | YoY Growth ($) | Cumulative Growth (%) | Notes |
| 2019 | $12.9 billion | 0% | – | 0% | Baseline year |
| 2020 | $23.4 billion | +81% | +$10.5 billion | +81% | COVID-19 lockdowns boosted online play |
| 2021 | $35.9 billion | +53% | +$12.5 billion | +178% | Sustained growth post-2020 |
| 2022 | $50.7 billion | +41% (projected) | +$14.8 billion | +293% | Projected based on Q1–Q3 trends |
More Sportsbooks Cater to Growing Demand
Seeing this demand, mainstream sports betting sites like DraftKings, FanDuel and BetMGM are expanding their esports offerings. Niche sites like Luckbox, Unikrn and GG.bet cater specifically to esports bettors too.
Most books now cover popular titles like:
- League of Legends
- CS:GO
- Dota 2
- Overwatch
- Call of Duty
- FIFA
As interest increases, more obscure games are also being supported.
Betting Brings New Audiences and Revenue
Esports betting is helping the industry in 2 key ways:
- Attracting new fans: Betting gives casual viewers more reason to tune in. Even non-gamers can engage through wagering.
- Increasing revenue: Sponsorship deals with sportsbooks provide another revenue stream for tournaments, teams and platforms.
As an example, streaming giant Twitch recently signed a 2-year sponsorship deal with sportsbook Unikrn. This deal will see Unikrn branding on Twitch’s esports streams, along with betting functionality built into the Twitch user experience.
These benefits give the esports industry more incentive to work with regulated bookmakers.
Ongoing Challenges Around Regulation
One ongoing challenge facing operators or bettors is regulation. Most jurisdictions have been slow to introduce esports betting legislation.
Without regulation:
- Bettors have fewer consumer protections
- Underage gambling risks increase
- Match-fixing dangers exist
Clear laws would help address these issues. It would also give bookmakers more confidence to offer markets. Nevada, New Jersey, and Colorado have made progress on this front in the US. But most states and countries globally still lack formal esports betting rules. The onus is now on regulators to catch up to this rapidly evolving industry.
More detailed problems we’ve described below:
| Challenge | Description | Impact | Potential Solution |
| Lack of Universal Standards | No global regulatory framework for esports betting | Inconsistent rules; creates gray areas for operators or users | Develop international guidelines via industry cooperation |
| Age Verification Difficulties | Difficulty ensuring all users meet legal age requirements | Risk of underage gambling and legal consequences | Implement stricter KYC (Know Your Customer) processes |
| Match-Fixing and Integrity Issues | Vulnerability to manipulation due to unregulated or low-tier competitions | Undermines trust in esports and betting markets | Stronger partnerships with esports integrity organizations |
Future Looks Bright
Despite regulatory uncertainty, the overall trajectory for esports betting looks very positive. Rising viewership, new betting platforms, evolving tech and shifting attitudes of gaming companies paint an exciting picture. As mainstream acceptance grows, so too will the scale and sophistication of esports wagering. This creates lucrative opportunities for operators and bettors alike. After years of hype, esports betting is finally becoming a major industry in its own right. The ceiling still looks a long way off, too.
