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For the muggles, esports is the term used to describe video games played at a competitive level. Major tournaments will be held in a large arena filled with audiences, while other tournaments are held online and streamed to millions of fans. Some of the popular games are Dota2, CS: GO, League of Legends, PUBG, FIFA, and H1Z1. These games are played on consoles like PS4, Xbox One, and PC. As the popularity of esports grew worldwide, a proper organization was set up for esports, and an efficient structure was followed.
There are several governing bodies around the world that have the responsibility to manage the games and events in that region in which professional and amateur players will take part. Esports might be new compared to others in the market, but it is already a big business worldwide.
What do the numbers say?
Esports has massive engagement around the globe and the players from all ages and ethnicities can play with each other on the application. Newzoo is one of the leading companies that offer the latest updates on esports. It has reported that the total audience for 2016 was 370 million, and by 2020 it is expected to reach 589 million. The total revenue of the sector will exceed €1.1 billion. It is not a rough guess as the number of people who watched the 2016 NBA finals was 31 million, on the other hand, the number of people who watched the world finals of League of Legends was 36 million in the same year. The growth of the industry is strongly dependent on the improvement of the application and monetization strategy. The pace of growth will entirely depend on the success of new leagues and events that are sponsored by the major brands and the selling price of media rights for the gameplay in the tournament.
After the initial growth phase, the overall pace of growth has increased because numerous business models have started to test their platforms to boost their revenue. Then, the overall structure of the esports industry has become transparent.
The main reason for the shift people towards the online sectors is that most of the traditional esports operators offer their customer betting options in esports, but most of them are limited to certain odds as the providers did not have a clear understanding of the sector, and betting options are limited to the operators. On the contrary, some providers fully understood the esports sector and had already started attracting user traffic in bulk. These esports platforms had a lack of regulation in the past.
The people’s interest exploded in recent years after a proper regulation of the sector and applications. The development in technology has lashed the accusations made in the esports sector as vulnerable to fraudulent activities as people’s money is on stake. The development team’s combination of understanding and knowledge of the esports sector has given rise to numerous entrepreneurs launching their custom esports betting software with premium security features. It has also opened up opportunities for numerous esports tournaments, recognition for professional esports players, and several major leagues. The people who opted for esports despite the risk factors limiting it in the earlier stages were the actual growth factors promoting it.
Risk and obstacles in esports:
Apart from the legislation, two factors threaten the growth of esports betting. The first one being the lack of proper access to player performance data and match integrity. Some bookmakers struggle from lack of accuracy in tournament and player data occasionally. They also find it difficult to set the odds for all gamblers across all games in a standard pattern and at the right price. An ideal betting platform must be free of fraudsters and illegal activities such as doping, match-fixing, online attacks that slow or disable opponents, or software cheat codes.
Investments for a major esports business:
Even though esports are played on PCs or Consoles, they require a curated environment as the viewership increases. Tournaments will be conducted in arenas with thousands of fans witnessing their favorite players going head-to-head against the other players from all over the world. Events will also be hosted in esports cafes to maximize both the player and fan experience.
Tools to measure analytics and performance:
Players require the ability to evaluate themselves and other players in the tournament, as this will improve their gameplay skills. These data and standardized metrics could be offered by an efficient analytics tool. Just like the players, bookmakers also require access to similar data sources so that they can combine the statistical data to come up with a match prediction. It will be helpful for them to place effective betting odds to increase the maximum return of investment.
Besides the analytical tools, efficient video production software will help them visualize the match play efficiently to increase fan engagement on the platform. Irrespective of the game being played, fraudulent activities must not be encouraged as it poses a significant threat to a healthy and professional environment. The providers need to ensure that they have an efficient cheating detection software to make sure the platform is safe. This is important because players, fans, tournament hosts, and sponsors will be affected if the betting platform is not safe and secure.
Esports betting is similar to traditional sports betting, but the level of immersion of the user with the character in the gameplay is way beyond what fans will have in traditional sports. The dynamics of the game have started to shift as more esports players are emerging from different parts of the world and more entrepreneurs have begun to approach the developers in custom esports betting app development companies to launch their platform.