eSports explodes from 1% to 35% of the online gaming market share due to COVID-19

2020- the year of social distancing, a suspension of sporting events, and 3 billion people on lockdown. The COVID-19 pandemic has sent many of the world’s economies into freefall, leaving millions unemployed and uncertain of what lies ahead. One sector that’s unlikely to bear the brunt of the pandemic is online gambling, and within that, the eSports market.

eSports or competitive video gaming is on the rise, as is the demand for betting on the outcome of tournaments or individual games. Those stuck at home are playing more video games and those that want to watch are tuning in en masse. Twitch, the popular eSports streaming site announced viewership was up 31% in March alone.

Pre-Pandemic
Before the pandemic, eSports tournaments would fill massive arenas such as Madison Square Garden. Video game fanatics would attend in the tens of thousands to watch gamers battle it out in Call of Duty: Modern Warfare, League of Legends, or Overwatch. These physical events may have been cancelled but due to eSports’ digital nature, the bulk of events have shifted back into the online world.

Some of the biggest games in the eSports world have already gone back online. Overwatch League has started back up and it took League of Legends just a week to make the transition.

The fall of conventional sports betting
The total absence of “conventional sports” and the closure of land-based casinos has driven many to seek entertainment elsewhere. A great opportunity for development has been given to the eSports world. It could be that COVID-19 is the catalyst the industry needs to move into the mainstream.

Because of the Coronavirus effect, the sports betting industry has seen a decrease in volume of around 80%. A “bloodbath” according to some, thankfully eSports is stepping up to fill the void. Betting on eSports was once something nice and fringe, but thanks to the current situation, conventional sports bettors are turning to it for their fix.

Big-name betting sites like Betway, Loot.bet and DraftKings are all offering wagers on eSports events. Prior to the pandemic, eSports bets accounted for only 1% of the market, today it’s up to 35%. Matt Kalish, co-founder of DraftKings North America said “especially now with this kind of downtime with sports, eSports have stepped up and become the number one offering on DraftKings”. He added that eSports contests are 20 times more popular now than they were before the lockdown.

The future of eSports
No one knows how long the COVID-19 epidemic will last, or how long social distancing measures will be in place. This uncertainty has led to a sharp increase in online gambling operators looking to incorporate eSports into their portfolios. Entrepreneurs have been inspired to look at setting up eSports companies to take advantage

Managing Partner of Fast Offshore Ron Mendelson believes that the time to move into eSports is now. His corporate services advisory which has been working with clients in the online betting world for over 22 years has seen a flurry of enquiries about the sector over the last few weeks.

“eSports has been heading towards the mainstream for 12 months, but I think now’s the time to get involved. We’ve seen an increase in requests from clients to set up eSports companies or apply for licenses that will allow them to operate leglly licensed eSports betting platforms.”

“Those that want to be and stay ahead need to respond to the growing need for online and virtual entertainment. Those that will enjoy success will choose an industry that can weather all kinds of storms- like eSports,” he added.

Contact Information

Ron Mendelson

Partner

Fast Offshore

Contact via E-mail