As esports continues to rise in the digital betting world, it has captured the increasing interest of operators, players, and regulators. Estimates indicate that global esports betting revenue is expected to hit $2.8 billion by the end of this year, marking a 12% increase from the previous year, and more than double the amount from four years ago. Projections for next year suggest that revenue will exceed $3 billion.
This rapid expansion has prompted intensified regulatory scrutiny, yet the relatively young nature of the esports sector has left many regulatory bodies striving to catch up. A significant challenge is the regulatory ambiguity stemming from a fundamental lack of understanding about esports and esports betting. In the United States, for instance, traditional sports wagering is legal in more than twice as many states as esports betting, with 19 states classified as grey areas that lack specific legislation for esports betting.
Oddin.gg, a supplier of esports betting solutions, is addressing this challenge by working with policymakers worldwide to enhance understanding and trust regarding esports betting. "We are trying to educate regulators about what esports actually is," said Marek Suchar, co-founder and managing director of Oddin.gg. The company has a local presence in various markets, which allows it to address concerns in native languages.
Suchar emphasized that the objectives differ among regulators, leading the company to engage in open discussions while simultaneously educating them about the industry. A common misconception regarding esports is the belief that it involves underage betting. Suchar stated, "There have been a lot of misconceptions around esports betting. Many of those are tied to mass media messaging."
While esports has traditionally attracted a younger audience, with individuals aged 18 to 43 making up 87% of its betting demographic, the average age of an esports bettor is above the legal age in regulated markets. For instance, the average age for a League of Legends bettor is around 29, and for Counter-Strike, it is approximately 31 years.
Oddin.gg delivers a range of esports betting services, including odds feeds and risk management, to prominent iGaming operators such as Betway, Yolo Group, and Aspire Global. Its global experience equips the company to share valuable insights with operators and regulators across different jurisdictions. Suchar noted, "Each region has a different perception about esports betting, but the concerns are often similar," and the company has prepared narratives to address these regulatory questions based on experiences in other markets.
The firm holds multiple licenses worldwide, including in Arizona, New Jersey, Colorado, West Virginia, Ohio, and Ontario. Such licenses bolster their credibility when engaging with regulators. Oddin.gg is positioning itself as a knowledgeable entity in the industry with substantial experience in betting trends.
As esports lacks a universally recognized governing body to oversee the industry, regulators must act swiftly to keep pace with its growth. According to Oddin.gg's Esports 2024 report, the volume of betting has surged year-on-year, with some major titles showing a 175% increase and average bet counts rising by 131%. This upward trend indicates a vibrant landscape dominated by game publishers.
The esports sector encompasses more than just titles like Counter-Strike 2 and League of Legends; it also includes fast-bet e-simulator games, which pose different challenges for both operators and regulators. Suchar pointed out that the core audience for games like Dota 2 and Counter-Strike differs from that of electronic simulations, and understanding these distinctions is essential for effective regulation and operation in the market.
Esports fans present an appealing market segment. They tend to be more likely to hold full-time jobs, possess university degrees, and nearly half earn over $100,000 annually. However, there is a significant gap in understanding betting among esports enthusiasts, with one in three fans stating they are uncertain about how betting works, according to iGB’s Esports Betting Report 2024.
Suchar emphasized the importance of catering to the consumption habits of younger generations, who expect on-demand content. "When we are looking at millennials and Gen Z bettors, what is critical for them is having content on demand," he explained. Unlike traditional sports, which have breaks between events, esports offers continuous betting opportunities, with over 15 live markets available for games being traded.
Last year, almost half of all bets on Counter-Strike were made during matches, and the segment of prop bets rose to 13%, demonstrating bettors' increasing interest in individual players. In esports, many players have larger followings than the teams, fostering higher engagement among bettors.
Oddin.gg collaborates with regulators and partners to ensure integrity in esports betting, focusing on transparency and addressing match-fixing openly. "We are able to identify in real time any suspicious activity and inform our partners," Suchar said. The firm analyzes data from betting traffic and compares it to previous events. If any unusual patterns emerge, title experts investigate gameplay and communicate findings to partners.
Suchar believes that educating regulators is essential to preventing esports betting from going underground. "It is vital to educate regulators about how esports betting should be regulated, because they do not want it to go underground," he stated. Building a collaborative partnership among regulators, bookmakers, and providers is crucial for the success of the industry, particularly in tightly regulated markets. Oddin.gg is committed to fostering such partnerships, as evidenced by its recent initiatives in Brazil, and shaping a safer future for esports betting.
