eSports
R&D rethink needed for sportsbooks to harness esports’ power
Esports betting is still grappling with a perception problem amongst operators. Despite the leaps and bounds in product development made by suppliers – particularly in the last two years – esports hasn’t shaken off the image built in the late 2010s.
Our good friend, Oliver Niner, Head of Sales at PandaScore, has been kind to share the below article with us.
There’s scepticism around esports betting’s value, how well it can actually perform and what’s needed to make it appeal to bettors. A big part of that comes down to perception, which shapes the research and development (R&D) choices made by each operator.
Self-fulfilling prophecy?
Operators who have put the research and development (R&D) resources into esports are seeing excellent growth, while others are still treating it like part of a long tail. The lack of a uniform approach to esports often translates into hesitancy to be bullish and invest in esports.
Whereas in the United States, post-PASPA sports betting has exploded and operators are seeking to capture as much territory and market share as possible because in most cases, you switch the lights on and the money comes in. It’s, of course, good business sense to take opportunities like this – you can apply the same templates used elsewhere on an incredibly lucrative market.
This kind of approach has been attempted for esports and hasn’t found the same success. Granted, the legislation for betting on esports has been somewhat slower than that of sports betting and iGaming.
However, bullish operators have acknowledged the fact that esports hasn’t found the same success in regulated states and asked what can be done differently, while for others, esports has been thrown into the too-hard basket or relegated to the bargain bucket.
For the latter, the fate of the esports vertical becomes a self-fulfilling prophecy – especially if an operator already using a budget esports product that throttles its very growth.
It takes two to tango
When esports is discussed in broader betting circles, you’ll often hear different versions of the same talking point: the problem with esports is no one is doing it well, it doesn’t innovate.
This argument is a case of the pot calling the kettle black. Esports is a driver of innovation, and it is sportsbook R&D that is holding it back.
Multiple suppliers on the market are investing significant resources into R&D, and bullish operators are leveraging these product innovations to acquire new customers and create engagements made for the internet age.
There are understandable reasons why sports betting doesn’t innovate. It’s largely because operators focus on acquisition, entering new territories and spending money on data rights. But the actual R&D on sportsbook products is left lacking, with ever-increasing cost-per-acquisition (CPA) numbers a clear symptom of this.
It means that if an operator does decide to use or acquire an esports specialist supplier but does little to cater its product and attempts to just lay the sports betting template over the top, of course performance will be throttled.
It’s like putting a Ferrari engine in a Prius – no offence to Toyota or Prius owners.
The same problem exists on the platform supplier front. Platforms are understandably focused on compliance and getting customers live, not necessarily improving models or their products.
Even the idea that if you just acquire an innovative company the problem is solved or you have found the solution, doesn’t hold water. In many cases, the company is acquired and plenty of noise is made about it, but there’s little organisational investment in R&D afterwards.
It’s not just in esports
These problems extend to customer acquisition and marketing for most emerging markets, not just esports. There’s a rush to use the same old playbook in newer sectors because it’s easy.
The fantasy vs. house sector in the US is already experiencing an acquisition arms race. As analyst Dustin Gouker points out, deposit match bonuses for new users on fantasy vs house products have jumped from $100 to as high as $500 in some places.
This is the same race that played out in sports betting and despite the costs, there’s little effort from most operators to try something different. There’s less work when you just put the same acquisition template on an emerging sector and call it a day. This seems to be an accepted practice in the industry, for better or for worse.
Esports betting success requires ongoing dialogue
Rather than attempting to wedge esports into hegemonic sportsbook approaches, sportsbooks need to take a completely unique approach.
The fact is the betting sector has barely scratched the surface – communities of esports fans are still dormant. Canadian operator Rivalry has built a successful, esports-first business by embracing the ever-changing internet culture that esports inhabits. French esports organisation Karmine Corp recently sold out a 30,000-person stadium for an event with no prize money up for grabs.
Innovative products developed on the supplier side like microbetting and betbuilders are only half of the equation.
Maximising esports revenues requires institutional investment, ongoing R&D and collaboration between suppliers and operators to create products and experiences. This includes having staff on the operator side that can drive and push the product further, and crucially, rethinking current sportsbook strategies and practices.
Building experiences for betting’s greatest emerging market – one that caters to your future core audience – takes investment, innovation and a willingness to experiment. If the industry wants to make the most of the Millennial and Gen Z audience that will become its primary customers, investment into R&D and close collaboration between suppliers and operators is needed. Many hands makes light work.
eSports
VSPO Joins Esports Integrity Commission, Further Strengthening Global Esports Integrity Standards
The Esports Integrity Commission (ESIC) announced that VSPO, the largest esports company in Asia, has officially become an ESIC member. Founded in 2016, VSPO has established itself as a key player in the global esports industry after hosting events across Asia, Europe and North America. This membership demonstrates VSPO’s commitment to promoting fairness, transparency and ethical conduct in the global esports ecosystem.
VSPO is renowned for its end-to-end esports offerings, including tournament operations, content production, talent incubation and integrated marketing solutions. The company recently announced the Esports Asian Champions League (ACL), Asia’s new premier international esports tournament featuring multiple titles. It has previously hosted high-profile esports events such as the Honor of Kings Pro League (KPL), PUBG Global Championship (PGC) and the esports series at the 2023 Hangzhou Asian Games, collaborating with major game developers and global brands.
By joining ESIC as a member, VSPO aligns with the industry’s most rigorous and widely accepted integrity standards, ensuring the protection and sustainability of its own tournaments and further supporting the esports industry as it continues to grow on a global scale. This will include enforcing ESIC’s Integrity Program across all tournaments and events, which addresses cheating, match-fixing, doping and other unethical behaviours.
As an ESIC member, VSPO commits to upholding the integrity of the esports ecosystem by adopting ESIC’s codes of conduct, cooperating with investigations and enforcing any sanctions imposed by ESIC. This ensures a consistent, global approach to maintaining fair play and transparency, safeguarding the credibility of esports for players, teams and fans alike.
VSPO becomes part of a prestigious roster of ESIC members, which includes some of the world’s most prominent tournament organisers such as ESL FACEIT Group, BLAST, LVP (MEDIAPRO Group) and NODWIN Gaming. VSPO membership comes as the company enters an exciting period. Last week it announced that Founder Dino Ying has transitioned to Executive Chairman, with Co-Founder Danny Tang becoming CEO. VSPO is also set to be renamed to Hero Esports, aligning with its domestic brand as part of its ongoing global growth strategy.
Stephen Hanna, Chief Executive Officer of ESIC, said: “VSPO’s commitment to excellence and its global influence makes it an invaluable addition to our growing membership of leading esports stakeholders. VSPO’s membership reinforces the importance of a unified approach to integrity, and we look forward to working together to ensure that the global esports industry continues to grow on a foundation of fairness and trust.”
Danny Tang, CEO and Co-Founder of VSPO, said: “We are proud to join a community that shares our commitment to maintaining the integrity of the esports ecosystem, protecting the credibility of esports for players and fans. A united front is the only way to ensure all participants can thrive, knowing that their efforts and talents are respected and valued.”
The post VSPO Joins Esports Integrity Commission, Further Strengthening Global Esports Integrity Standards appeared first on European Gaming Industry News.
eSports
Abios partners Svenska Spel to bolster esoccer offering
Leading Swedish operator enhances its esoccer capabilities with Abios’ comprehensive odds feed, streams and widgets
Abios, a global leader in esports data and odds provision and part of the Kambi Group, has agreed a partnership with Svenska Spel to provide the leading Swedish operator with its full esoccer offering, including its comprehensive range of odds, streams and widgets.
Harnessing real-time data from official rights holders and automated models overseen by an expert trading team, Abios’ esoccer offering covers more than 12,000 matches every month. Having powered esoccer across the Kambi network since 2023, Abios’ offering consistently ranks among the top leagues on the network by number of bets.
Svenska Spel is one of the largest operators in the Swedish regulated market, with an extensive online presence encompassing both sportsbook and casino. Svenska Spel is also the single largest sponsor of Swedish sports, making large contributions to everything from women’s hockey to the Swedish national football team.
Managing Director and Co-founder of Abios, Anton Janér, said: “As a company founded in Stockholm we’re incredibly happy to power Svenska Spel, one of the most well-known brands within Swedish sports. Esoccer has grown rapidly for us in recent months, and it is exciting to see that the novel product features we’ve rolled out have gained traction and boosted results for our partners.”
Ida Björklund, Head of Sports Betting at Svenska Spel, said: “By adding esoccer to our offering, we allow our customers to enjoy an exciting new product that has grown rapidly in popularity. The opportunity for customers to follow their bets throughout the match by watching streams bolsters the user experience, acting as a fantastic complement to our broad and deep offering.”
The post Abios partners Svenska Spel to bolster esoccer offering appeared first on European Gaming Industry News.
Asia
Kazakhstan to Host the Games of the Future 2026
Following a highly competitive process, Phygital International announced that Kazakhstan has been chosen as the host of the Games of the Future 2026.
This annual tournament, which is the pinnacle event of the phygital sporting world, received hosting bids from countries across the world, all bidding to follow the UAE in becoming hosts of this prestigious event.
Kazakhstan proved itself the ultimate winner with the Phygital International Expert Committee judges, after showcasing its expertise in hosting international tournaments, its state-of-the-art sports venues – along with the perfect mix of being a nation that embraces sports, culture and tradition as well as its technology and innovation capabilities.
The Games of the Future is a unique international event, which brings together the next generation of dynamic sporting heroes from all over the world. Phygital International expects the Games of the Future 2025 in UAE and now, 2026 in Kazakhstan to welcome thousands of world-class athletes and esports persons as part of multinational clubs. They will participate in the multi-sport event which comprises of a number of phygital sport challenges.
Nis Hatt, CEO of Phygital International, said: “We’re hugely excited at the prospect of Kazakhstan receiving the phygital flame from next year’s host, the UAE to host the 2026 tournament. It’s so pleasing to see the exponential growth of not only phygital sports, but also the global phygital community.
“In fact, the host nation bidding process for the Games of the Future 2027 is already hotting up but there’s still time for other countries to put their bid in before the deadline in December.”
Yerbol Myrzabossynov, Minister of Tourism and Sports for the Republic of Kazakhstan, said: “It is a privilege for our great nation of Kazakhstan to be awarded the honour of hosting the Games of the Future in 2026. Our country has supported phygital sport from its very inception, and we take pride in being the next in line to host this great event and we’re excited to receive the phygital flame from the UAE, who’s hosting in 2025 we greatly look forward to.”
The Games of the Future places no restrictions on its participants and welcomes everyone, regardless of their age, gender and nationality. The deadline for submitting applications to host the tournament in 2027 is December 31, 2024.
The post Kazakhstan to Host the Games of the Future 2026 appeared first on European Gaming Industry News.
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