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The esports industry currently holds about 4.5% of the global online sports betting market. Its growth potential is promising. In recent years, forward-thinking casinos and sports betting companies have extended their reach into the esports industry, considering it as a stable and long-term source of entertainment and revenue.
With the rapid development of the esports industry, physical casinos have seized the opportunity to attract a younger audience. The integration of sports betting and esports has become more widespread since 2017.
In 2017, Allied Esports and esports company Esports Arena announced the creation of an esports arena on the Las Vegas Strip. The HyperX Esports Arena, located at the Luxor Hotel, is a 30,000 square feet facility dedicated to providing a casual yet immersive esports experience for enthusiasts and hosting various offline tournaments.
Also in 2017, blockchain-based esports betting entertainment company Unikrn partnered with MGM Resorts International to bring online esports games and tournaments to the MGM Grand Hotel. Complexity Gaming, a North American esports organization, made history in 2018 by becoming the first esports organization in the U.S. to attract a casino as an official sponsor, with WinStar World Casino and Resort becoming its exclusive casino partner.
In 2020, GameCo partnered with data and analytics company GRID, integrating esports data and streaming solutions with GameCo's Video Game Gambling Machines in both physical and online settings.
Esports Entertainment Group in 2020 collaborated with Twin River to launch mobile sports betting products in New Jersey, further expanding its presence. The esports-related companies also benefited from such collaborations by increasing their revenue streams.
While other industries faced slowdowns in 2020, esports betting saw a significant surge in the UK, with a staggering 2922% increase in revenue, rising from £52,230 in 2019 to £4,616,610.
The line between esports and traditional casino entertainment continues to blur. Several esports betting platforms, including Betway, Loot.bet, and 1xBet, not only offer online casino games but also organize esports tournaments.
Esports organizations are forming strategic alliances with sports betting operators rapidly. Esports Entertainment Group entered the Latin American market by sponsoring Peru's esports organization Infamous Gaming and hosting events with the well-known Movistar Liga Pro Gaming esports platform.
Parimatch named professional CS player Marcelo David as its global esports ambassador. International betting company Betway collaborated with the famous Swedish esports team Ninjas in Pyjamas in 2016.
The future of esports betting is closely tied to data and cryptocurrency. The FYX exchange, set to be publicly launched, is collaborating with the esports industry to enhance the esports experience through Bitcoin blockchain.
Despite being a multi-billion-dollar industry, esports still has significant room for growth. The collaboration between esports and the sports betting industry is just beginning, and solid partnerships may mature in the coming years.
The sponsorship value of esports teams is evident in the consumer electronics industry, with external device manufacturers like Logitech, Razer, and Hyper getting involved. Lifestyle brands such as Nike and Puma are also rapidly joining the esports trend.
Collaborating with established esports brands can help avoid challenges in attracting players. Professional esports teams like OG, Fnatic, and Dignitas, composed of players from different countries, may have a cultural advantage in marketing. Partnering with these renowned esports brands can gain more fan support.
Several high-profile sports betting companies have successfully built mutually beneficial relationships with esports organizations. Parimatch, based in Cyprus, has signed sponsorship contracts with Virtus.Pro and Fnatic. Fun88, an online sports betting company, has similar agreements with OG, the champions of The International 8 and 9.
As the esports industry accelerates its growth, betting companies must develop innovative strategies, observe and meet the needs of both bettors and esports enthusiasts. Collaborating with established companies can help build consumer awareness more quickly than going solo. |
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Post time 9-2-2024 20:45:42