GPWA Times Magazine - Issue 35 - June 2016

times and coming up with new ways to make the gambling experience more compelling.” Along the way, wagering on eSports be- came a viable market that is no longer fly- ing under the radar. Almost every major European online bookmaker — including market leaders such as bet365, Pinnacle and William Hill — now offers eSports betting markets. Eilers Research estimates there were 590,000 real-money fantasy eSports players in 2015, 1.72 million for eSportsbooks and 3.2 million players placing wagers via informal betting mar- kets. In its report from last summer, titled “eSports Betting: It’s Real, and Bigger Than You Think,” Eilers Research projects 19.4 million eSports bettors will wager $23.5 billion by 2020, generating $1.8 bil- lion in revenue for operators. But while all this may make eSports seem lucrative for online gambling affiliates, there are obstacles to overcome. Chris Grove — a partner at Narus Advisors, which services various stakeholders in the U.S. regulated online gambling mar- ket, and a co-author of the Eilers Research report — told the GPWA that three of the main roadblocks are product quality, event velocity and possible match fixing. “The fact of the matter is that the eSports wagering product is wildly underdevel- oped relative to a stick-and-ball betting product,” Grove explained. “You won’t find much in the way of in-play or other types of exotic wagers that have proven so successful at driving interest in betting on sports like football or basketball. Fixtures and limits are both minuscule compared to soccer. “As the quality of the eSports betting product improves, both the number of fans it will appeal to and the willingness of sportsbooks to throw marketing mus- cle behind it will increase.” Grove added that the number of marquee events around the top-tier eSports titles is increasing at a rapid clip, as is the size of those events. “With more events comes more aware- ness, more opportunities to bet, and more opportunities for sportsbooks to cultivate audiences around specific eSports and eSports events,” he said. The potential for match fixing, however, is a more serious issue. “The reality is that eSports — just like major sports such as tennis and soccer — will always need to remain vigilant on the matter. But match fixing thrives in environments where pay for players and oversight are low,” Grove said. “We’re seeing increases in the economic oppor- tunities for eSports players and a rise in both formal and informal oversight of eSports. That’s not to suggest that a prob- lem doesn’t remain — it certainly does — but the concern around that problem should be tempered by the realization that the conditions that would support match fixing are receding in eSports.” GPWA member Radu Pasan (“Rostick” on the GPWA Forums) ventured into eSports for Betdistrict.com last year by publishing “tipster” articles, and he said they received a “pretty good” hit rate. The site went away from the articles this year, Pasan explained, because of the “mas- sive challenges” ahead for the eSports betting market. “It’s emerging with incredible growth numbers and bookies are fighting for su- premacy in the industry, so that will al- ways be a great opportunity for affiliates,” he said. “However, gambling legislation or language barriers for some of the top eSports markets could represent a diffi- cult obstacle. Besides, eSports is already big, so it’s not like you would have a huge head start unless you are an authority fig- ure or at least an expert.” Nonetheless, affiliates like Pasan will be keeping a close eye on the industry as the market continues to flourish, along with the potential to cash in. “This industry is going to be around for a long time, and it is only going to get big- ger and bigger because there’s a whole generation of young people coming through in large numbers that grew up with eSports,” said John Hagan, partner at Harris & Hagan, a firm specializing in gambling and leisure law. “Intuitively, there’s going to be a commer- cially viable percentage of those that are participating who will want to gamble on eSports, and therefore it’s an opportunity for gambling operators to reach out to customers that they don’t already reach. And when you’re in a very competitive worldwide gambling market like we have today, finding any new vein of customers is vital.” As the quality of the eSports betting product improves, both the number of fans it will appeal to and the willingness of sportsbooks to throw marketing muscle behind it will increase.” — Chris Grove Gary Trask A Boston native with more than 20 years of experi- ence as a writer and editor, Gary Trask is a managing edi- tor for Casino City Press and has been covering the gaming industry since 2007. 32 Video games may be the next big thing in online gambling