or some time now, the worlds of gambling and gaming have been moving ever closer together as sports betting and gambling providers look to esports and gaming as a means of tapping into a new market and engaging a new generation of customers. This symbiotic relationship took a huge leap forward in August when Entain, one of the world’s largest gambling operators, acquired Unikrn, one of the world’s biggest esports betting platforms. The driver for the acquisition was neatly summed up by Entain CEO Jette Nygaard-Andersen as an opportunity to “triple our business here, just looking at how this market will multiply.” And what an opportunity! For those who aren’t familiar with the surging esports betting market, here’s a very quick high-level overview. Esports is competitive gaming (mainly video games such as FIFA, Dota, Counter-Strike, etc.) and played by individuals or teams. Esports betting is wagering on the outcome of the games. Streaming is watching the game in real time or live. There are a number of streaming platforms (just like TV channels) that allow people to watch people playing video games live. “Streamer betting” – betting on the game being played – has, just like its older sports-betting cousin, become massively popular. And just like sports betting, what started as wagering simply on the winner of the game has morphed into a range of betting markets, like in-play. The interesting twist is that streaming platforms are no longer limited to watching people play video games. They have evolved to include other types of games, including gambling games. Viewers now tune in to watch players playing gambling games such as slots and casino games live. That’s right. People are tuning in to watch streamers play a slot or casino game live. People watch streamers playing a game on an operator site and then might go try it themselves. Not surprisingly, it is estimated that up to 6% of the 1,000 top streamers on Twitch, the world’s biggest gaming streaming platform with over 15 million daily active users, have or had a relationship with a gambling operator at some point. Some even have sponsorship deals with gambling companies. Streamers use referral, bonus and promotion codes in the same way as the established acquisition route or have sponsorship deals with gambling companies. Six percent may not sound like a lot, but within the context of over 15 million daily users and a market size of over one billion, it could amount to quite a lot of money. (The esports betting market is currently valued at around £2 billion, however, some analysts are suggesting that this could grow to as much as £20 billion in the next few years). Great news for the gambling industry. Great news for players. And great news for affiliates too, right? Wrong. On the day that Entain acquired Unikrn, Twitch implanted its new ban on the promotion of online gambling through affiliate links and referral codes on its platform. This isn’t just bad news for those affiliates focused on the relatively young esports betting market, it is disastrous for all affiliates given the speed at which streaming and social media channels are replacing the traditional acquisition routes for gambling - especially when looking for new customers or emerging markets where technology has skipped a whole generation. While some may be taking comfort in the fact that there are other streaming platforms (some of them dedicated to betting and gambling) - the question is for how long? The Twitch decision came after much lobbying, not just around the dangers of problem gambling, but also concerns around the With somany restrictions, it can only be a matter of time before the regulatedmarket starts to face the predicted stiffcompetition fromthe black or unregulated market experts have beenwarning about, leaving affiliates tomake some toughdecisions. F 21 G P W A t i m e s . o r g
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