The Next Frontier for the Industry. The Convergence of Betting, Gaming, and Oversight in the World of Esports.
A New Age in Gaming and Gambling
The worlds of gambling and esports continue to converge as betting on competitive gaming increases in popularity. This intersection presents both challenges and opportunities for stakeholders, raising questions about sustainability, advertising, and regulation within the sector.
The Rise of Esports Betting
Esports (or electronic sports) encompasses professional competitive gaming and attracting millions of viewers globally. The industry’s rapid growth has led to increased wagering, with estimates suggesting the global esports betting market is projected to reach $21 billion by 2027. Key factors driving this growth include advancements in technology, streaming platforms, and the rising number of global esports events.
Sustainability and Advertising
As the esports and gambling sectors intertwine, concerns will continue to grow in respect of responsible advertising and sustainability. Critics argue that the exposure of young audiences to gambling advertisements during esports events may contribute to problem gambling. Industry leaders must be willing to strike a balance between advertising revenue and responsible practices, implementing measures to protect underage or vulnerable individuals.
The Missing Piece
The lack of comprehensive regulation in the esports betting industry has drawn scrutiny from various perspectives. Currently, regulatory frameworks vary significantly across jurisdictions, leading to an inconsistent approach to enforcement and the potential exploitation within the sector. The development of a harmonised regulatory landscape is crucial in ensuring the industry’s long-term success.
The Benefits of Betting Integration
Despite responsibility and regulatory reservations, proponents of esports betting integration argue that the industry’s growth offers significant economic opportunities. Increased investment in advertising and sponsorship deals can provide financial support for organisations within the sector, fostering the expansion of competitive gaming.
Weighing In on the Debate
Industry experts have voiced their views on the intersection of gambling and esports. Sarah Harrison, former CEO of the UK Gambling Commission, stresses the requirement for proactive regulation, noting, “We need to ensure that gambling-related harm is minimised”. Prominent esports commentator, Paul “ReDeYe” Chaloner, acknowledges the potential associated risks but adds that “regulated and responsible gambling can be a positive addition to esports”.
The Future of Esports and Gambling
The intersection of gambling and esports presents a complex landscape with opportunities and challenges for industry stakeholders. Effective regulation, responsible advertising, and sustainability will be key to navigating this new frontier successfully. As the industry continues to evolve, addressing these issues will be crucial in shaping the future of esports and gambling as a collaborative market.
Jurisdictional Knowledge
Establishing an esports gambling business in a jurisdiction that understands the industry is essential to success.
The Isle of Man is a pioneer in esports gambling, having issued the first tier-1 license to a skins betting operator.
Since then, the island has developed into the jurisdiction of choice for esports endemic brands, such as Unikrn, Luckbox, Rivalry and LootBet.
The Isle of Man Gambling Supervision Commission (GSC) is known for its strong online gambling licensing and monitoring, ensures only reputable operators get a license.
The GSC fosters a collaborative relationship with operators, while ensuring player safety is a priority. Licensed operators must protect all player funds, promote responsible gambling and protect vulnerable individuals.
An Isle of Man gambling license is respected globally due to the jurisdiction’s commitment to high industry standards.
Partnering with Experts
Esports betting requires knowledge of the esports industry ecosystem, especially how endemic brands execute efficient and effective marketing and compliance strategies.
SolutionsHub have led this segment of the gambling industry, guiding Unikrn through licensing, establishing operations and successful sale to Entain in 2021. Furthermore, SolutionsHub have supported Luckbox with concept development, licensing, operations, compliance support and listing.
For advice on establishing your esports gambling business, contact us now.