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The spread of COVID-19 has bought devastation to various industries, prompting the shutdown of arenas, casinos, malls, and restaurants across the world. However, several industry experts say that this is the time for esports industries to strike the iron as the situation is hot now. This is the perfect time for the operators to re-evaluate their revenue in this growing industry. Several esports tournament software companies have reported the spike in the user engagement rate as millions are told to stay at home.
Experts have speculated that the esports industry will continue to generate more revenue in the future as it is going to engage their customers online more and more as the world is moving into social distancing for the next few months. esports is already one of the fastest-growing segments for several online bookmakers and will continue to be an important part of the strategy.
One of the most attractive draws about the esports industry is its ability to merge with the sports betting industry. There are several major books that rank esports among their top 10 sports, which are determined by user engagement. A report published by the research and consulting firm in 2016 has speculated that the major title in the esports industry would constitute more than $12.9 billion by 2020.
The speculated figures are more than two times which the esports industry had four years prior. Although the sporting events and sports betting have come to a halt, esports betting is still viable in this strict social distancing period. esports is not like traditional sports, which cannot be capitalized on a digital platform to continue the operations.
The digital platform is attracting a lot of bettors in recent times as the companies have reported significant spikes in the user engagement of their platforms last month. The New Jersey state alone has reported $163.4 million in revenue in the month of March. This figure is 90 percent more than that of usual revenue for the esports tournament provider in their state.
If we stick to the facts, the esports phenomenon has been misinterpreted by everyone as the average age of an esports player is sixteen. This makes the esports industry more lucrative than ever as the average player is not even legal to drive a car or to play casino. It was observed by the staff at the 2018 League of Legends tournament held at Mandalay Bay, where most of the participants did not spend money on restaurants inside the property instead, they bought food from McDonald’s with them. This undoubtedly is the perfect example of how much people are craving for esports and not willing to spend money on anything other than the bets inside the arena.
People are taking up esports as a temporary filler as the bettors wait for live sports to resume. Some groups of people are expected to stick to it as they are looking for opportunities to consume competitive entertainment in an organized betting environment. It is expected that during this lockdown period, people will discover new games and experience professional competition on the esports betting platform.
The Social distancing measures are expected to be followed for the next few months after this lockdown, which means esports cannot have a live audience in the arena, or it can be held as an online-only event. But it is not easy to organize an esports tournament entirely online as it will create several disruptions for gaming companies and their participants.
Usually, in esports tournaments that are held in an arena, a referee will be present whose job is to oversee the ongoing games, but this will not be possible when the tournament is held online. But instead of a referee on site, the players in the gameplay must be monitored with software from their homes. This software should be installed prior to the game on every gamer’s computer. This is to make sure to guarantee there is no fraudulent activity in the tournament and to increase the transparency between the gamer and organizer.
Players may also face different internet speeds in their home countries when they compete with others in a global event. This cannot be avoided as internet speeds vary in every country. However, this can be tackled with the solution of Levine from ESL. His proposal was to conduct regional tournaments or nationwide tournaments to prevent any such issues.
How to tap into the esports market segment?
This pandemic situation has pushed several enterprises to take up digital marketing strategies to prove themselves and to establish an entrepreneurial significance in the market. The companies have started to take up unique strategies that may turn the tables by leveraging esports fanbase. As the live sports and other similar areas of interests are going dark, they depend on the strategies so that the businesses can capitalize on the growing fanbase and expect them to be a game-changer.
Esports is growing to be a major disruptor in the sports industry and as well as the testing ground for businesses waiting to tap into the market with the opportunities. The industry is not expected to face a setback as the fans are definitely enjoy the content from their favorite players. This new format opens up to creating new business opportunities, major collaborations, and to strengthen the relationship between fans and team.
Along with the new fans comes a new appeal for sponsors for making the right deals. esports is set on the path for commercial outlook with more than half a billion esports fans. esports is the perfect way to attract people of the younger generation and new brands to endorse the events.
Sealing the deal:
Although the stadiums and arenas are empty now, the digital racetracks are getting crowded with fans seeking their continued dosage of content. Entrepreneurs are also started to take hold of this opportunity as the industry might not be a wish-granting factory, but with the right stroke, the enterprise can go miles in the race.