Traditional sports continue to hold a strong position in the betting industry. However, as esports gain traction alongside the rise of streaming platforms and gaming sites, they are becoming increasingly popular among bettors. In 2019, market research firm Technavio projected that the sports betting market would grow by $144.4 billion from 2020 to 2024.
The pandemic had a significant impact on sports betting, leading many bettors to shift towards esports. According to Oddspedia.com, the number of esports betting events surged from 3,000 in July 2019 to over 50,000 by July 2020. Although this shift can be attributed to the lockdowns caused by COVID-19, interest in esports was already rising before the pandemic, with Newzoo reporting 443 million esports enthusiasts and casual viewers in 2019.
Thomas Rosander, who has a background with Electronic Arts—known for the popular esports title FIFA—believes esports represent the next big opportunity for betting. "I think you always have to evolve. Sports business has kind of stagnated a little bit," Rosander noted. He aims to cater to younger audiences, as Twitch reveals that nearly half of its users are aged 18-34.
Despite the focus on esports, Luckbox expanded its offerings to include traditional sports this year through a partnership with EveryMatrix. Rosander understands the importance of innovation in product evolution and aims to attract more customers as CEO. He pointed out that online casinos have thrived by evolving their products: "The reason why the online casino is so big and has been so successful is because it evolved into something. It’s easy to launch a casino without much money, but a lot of people tried and failed. Because it’s not just about setting something up, it’s about driving traffic and so on as well."
Rosander announced that Luckbox plans to launch an online casino product later this year, leveraging his experience. "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."
Although esports remains the core focus, the evolution of the company also requires careful consideration in developing title options. An extensive range of game titles is essential to keep customers engaged and showcase developers' capabilities. Rosander acknowledged the challenge: "I think we can always get better at adding titles, but it doesn’t just rely on us. We rely on creators. Our philosophy is: we try to add everything we can as fast as we can. But it has to have a proper quality for us to add it."
Luckbox operates in 80 countries and is actively seeking new marketing opportunities, including a recent affiliate program launched with Income Access. "There are some markets that we see a lot of potential in. For now that is our focus, as we are building up our marketing capabilities and preparing us for accelerated growth," said Rosander.
However, expansion comes with challenges, especially regarding local regulations in the igaming space. "Regulation is a huge pain. At the same time, it’s necessary… We’ve been going through a phase where countries are trying to regulate, in some cases succeeding. But in many countries, the balance is difficult, which is harmful for players and for the companies."
Luckbox has seen significant growth since its launch, with an 18-fold year-on-year increase in revenue during 2020. However, revenue remains modest as the company focuses on platform development. Rosander's recent appointment as the third CEO in a short span highlights the company's growth ambitions. "What me taking this role really indicates is that we’re shifting gears," he stated. He envisions a proactive growth strategy aimed at enhancing player acquisition and building affiliate networks, tapping into the unprecedented levels of content consumption occurring in the market today.
