The world of competitive video gaming, known as eSports, has exploded in popularity over the last decade. Once a niche hobby, eSports events now regularly fill massive arenas and attract viewership numbers rivaling traditional sports. This meteoric rise has opened up new opportunities for gamblers, as Paddy Power online betting on eSports matches has emerged as a major new frontier in the online gambling industry.
In this article, we’ll explore the factors driving the integration of eSports and betting, look at the leading sites accepting eSports wagers, examine the risks and rewards of this burgeoning new form of gambling, and gaze into the future of a multibillion dollar industry still in its infancy.
The Rise of Competitive Gaming as a Spectator Sport
While informal video game competitions have existed since the medium’s beginnings, organized eSports leagues are a relatively recent phenomenon. The genesis is usually traced to the late 1990s, when tournaments for games like Quake and StarCraft began to achieve notice in Western nations.
The breakthrough came in the 2000s, when improvements in internet infrastructure enabled live streaming of matches. Suddenly, gaming competitions that were once limited to crowded internet cafes could be broadcast to audiences of millions worldwide.
Table 1: Notable Events in eSports History
| Year | Event |
| 1997 | Red Annihilation Quake tournament draws over 2000 participants |
| 2000 | Launch of World Cyber Games eSports tournament |
| 2011 | Dota 2 International tournament offers a $1.6 million prize pool |
| 2013 | Over 32 million watch League of Legends Season 3 World Championship |
| 2016 | eSports generates $493 million in revenue, draws a global audience of 292 million |
| 2019 | Fortnite World Cup offers $30 million total prize pool |
Viewership of these streamed events grew exponentially in the 2010s. By 2016, over 292 million people worldwide were watching eSports. Total industry revenues soared past $400 million.
The top tournaments now boast multimillion dollar prize pools that eclipse most traditional sporting events. Competitive gaming has become a career for thousands of professional players signed to major teams and leagues.
These structural shifts have pushed eSports into the mainstream. No longer a niche interest, competitive gaming now constitutes big business and draws sponsors from Fortune 500 companies like Coca-Cola and Intel.
The Natural Evolution to eSports Betting
The soaring popularity of organized video game competitions has presented a lucrative new market for online sportsbooks. Betting on eSports leverages the same factors that have driven the success of traditional sports gambling: passionate fans, heated rivalries, and unpredictable outcomes.
Legal eSports betting launched in earnest in 2014, when major sites like Pinnacle, Bet365, and Betway began taking wagers on competitive gaming events. The market impact was immediate and immense.
In 2015, the global eSports betting handle was an estimated $325 million. Just two years later, that figure had ballooned to $5.5 billion. The trajectory has remained skyward ever since. Revenue from eSports betting is expected to top $14 billion in 2020 alone.
This hockey stick growth shows no signs of slowing down. The eSports audience skews young, digital, and eager to embrace new technologies like cryptocurrency and blockchain. These demographics perfectly align with the future of online gambling.
The Benefits and Risks of eSports Betting
This new form of gambling presents unique advantages:
- Mainstream accessibility – Video games have broad appeal, allowing eSports betting to reach demographics that traditional sportsbooks cannot. Millennials and Gen Z overwhelmingly prefer gaming to traditional sports.
- Fast pacing – eSports matches unfold rapidly, which means more wagering opportunities. A League of Legends match may offer dozens of chances to bet in the span of an hour. Football, by contrast, only has a handful of bets per game.
- Enhanced engagement – eSports fans are already invested in video game competitions as more than just passive viewers. Betting gives them an additional way to engage.
- Innovation – The fast-changing nature of eSports provides opportunities for innovative bet types. Wagers on in-game events like kill totals and map durations already exist.
- Beginner friendly – The simpler rules and shorter duration of eSports matches make them more accessible to betting newcomers than complex traditional sports.
Of course, this emerging field also comes with substantial risk:
- Volatility – eSports matches feature more randomness and upsets than traditional sports. Odds and lines are softer until sportsbooks refine their pricing models.
- Unfamiliarity – Those new to eSports may struggle with game mechanics, team/player tendencies, and impact of patches. Homework is required.
- Limited regulation – Oversight is still lax in many jurisdictions. Bettors should be cautious and only use reputable, licensed sites.
- Integrity concerns – As salaries rise, players could be incentivized to fix matches by throwing games or sharing insider information. Monitoring systems are still developing.
- Addictive nature – The combination of video games and gambling may prove more addictive for some players. Bettors need to exercise discipline with bankroll management.
Overall, eSports betting provides new opportunities but requires an informed, reasoned approach. The learning curve is steeper than traditional sports wagering. As with any form of gambling, bettors should only risk money they can comfortably afford to lose.
The Future of eSports Betting
This sector has already posted huge numbers, but the ceiling remains distant. Revenue projections for the future are eye-popping:
- 2020: $14 billion
- 2021: $17 billion
- 2022: $20 billion
- 2023: $24 billion
These estimates may prove conservative. Goldman Sachs has suggested the market could swell to $15 billion as early as 2022.
A key driver will be increased mainstream adoption. As more sportsbooks add eSports odds, they’ll attract new bettors from the gaming community. In the US, every state that legalized sports betting is a new eSports market waiting to be tapped.
The underlying demographics will continue to propel growth. Millennials love eSports and will soon overtake Baby Boomers as the dominant gambling demographic. Gen Z is following the same path. The interest in eSports is generational.
Expect product innovation to explode as well. Already, sites are offering live in-play betting for eSports events and experimenting with proposition bets. The evolution to eSports-specific bonuses and promotions will follow.
One certainty is that competitive gaming and online gambling will remain inextricably linked going forward. The synergy is simply too powerful. As eSports grows, so too will eSports betting. This brave new world of online wagering has only just begun.