Traditional sports dominate the betting landscape, but esports betting is increasingly rising in popularity as video streaming gains traction. According to Technavio, the sports betting market is set to grow by $144.4 billion between 2020 and 2024.
The pandemic had a significant impact on betting habits, pushing many bettors toward esports. Oddspedia.com reported that the number of esports betting events jumped from 3,000 in July 2019 to over 50,000 in July 2020.
While the Covid-19 lockdowns played a pivotal role, the demand for esports was already on the rise prior to the pandemic. Market research from Newzoo indicated that in 2019, there were 443 million esports enthusiasts and casual viewers worldwide.
Thomas Rosander, who has a background in video gaming with Electronic Arts, sees great potential in esports betting. "I think you always have to evolve. Sports business has kind of stagnated a little bit," he stated.
Rosander believes there is still innovation in live betting but emphasizes a younger demographic. "We’re trying to tailor it for the younger generations because those are the ones watching Twitch and playing video games," he added. Twitch reports that nearly half of its users are aged 18 to 34.
Despite the focus on esports, Luckbox has recently expanded to include traditional sports betting through a partnership with EveryMatrix. Rosander sees value in diversifying, similar to how online casinos evolved: "The reason why the online casino is so big and has been so successful is because it evolved into something."
Luckbox plans to launch an online casino product later this year, with Rosander stating, "That’s something I know from my background. And we’re going to do it in a different way than others. We’re still esports betting first, which is going to influence the casino."
Esports will remain central in Luckbox’s future developments. Rosander, who has previously served as the marketing director at EA and chief customer officer at Luckbox before becoming CEO, aims to merge gaming and gambling. "Basically, I’ve always had one leg in igaming, or gambling if you like, and the other side is video gaming," he remarked.
He described the transition to CEO as seamless as he had already been implementing plans in his previous role. However, creating new content may come with its own challenges.
The variety of games offered is crucial to an esports betting platform’s success since it engages customers and highlights developers’ capabilities. "I think we can always get better at adding titles, but it doesn’t just rely on us; we rely on creators," Rosander said.
He advocates for balancing quality and quantity in titles offered. He noted that interest from video game publishers to develop games with competitive functionality is rising.
Luckbox operates in 80 countries but is actively seeking additional marketing opportunities. Recently, it launched an affiliate program with Income Access. Rosander remarked, "There are some markets that we see a lot of potential in."
As Luckbox aims to expand, compliance with local regulations remains a key challenge in the igaming sector. "To the igaming part of things, regulation is a huge pain… but it’s necessary," Rosander acknowledged.
He pointed out that achieving a balance in regulations is challenging, yet vital for player safety and company interests. Despite the hurdles, Luckbox has shown remarkable growth, with an 18-fold revenue increase year-on-year in 2020, although nominal revenue remains modest as the company builds its brand. Rosander’s appointment as CEO underscores the company’s commitment to growth.
"What me taking this role really indicates is that we’re shifting gears. We have a growth strategy where we’re building our player acquisition capabilities and creating that network with affiliates," he explained. He sees vast opportunities for customer acquisition in the current market landscape and aims for Luckbox to lead in this new era of content consumption.
