eSports
Esports Exposure Exploding During COVID-19 Outbreak
Esports was already a booming business coming into 2020. Last year, Esports topped $1 billion in revenue for the first time. That was a 26.7% increase from 2018.
A sure sign of the growth in the popularity of Esports is shown by the fact that its highest-grossing revenue stream in 2019 was in the area of sponsorship. According to a published report, there was nearly $457 million generated in sponsor money by Esports last year.
Esports leagues and tournaments are drawing huge audience numbers. Estimates were that almost 454 million took in an Esport event last year. Those are the kinds of numbers that encourage major corporate sponsorship of the events.
COVID-19 Impact
The outbreak of the coronavirus has led to another spike in popularity among Esports. In North America, the NHL, NBA and MLB halted their seasons. The NCAA men’s basketball tournament was canceled. Golf and tennis also stopped playing. The launch of NFL and NCAA football seasons in the fall remain uncertain.
Around the globe, almost of the world soccer shut down. The European Champions League and the English Premier League took a hiatus. Euro 2020 and the 2020 Tokyo Summer Olympics were postponed.
With all of the major sporting leagues forced to shut down due to the COVID-19 virus and the accompanying bans on large gatherings, there’s little in the way of sports to entertain the masses. Sports fans were left desperate for an outlet. Sports networks sought out programming. Sportsbooks looking for other forms of betting turned their attention to writing more wagers around Esports events.
Esports are stepping up and proving capable of filling the void. While not completely bereft from feeling the impact of COVID-19 – the large tournament events held in halls filled with spectators watching video game team competitions such as Counter Strike: Global Offensive, Call of Duty and Dota 2 are currently not permitted.
The Overwatch League is playing its entire 2020 season online. Play! Pokémon canceled its North American International Championship and World Championship.
However, the ability of Esports to adapt and be played by players under quarantine is giving them a leg up on actual sports.
Industry estimates are that the demand for Esports has increased by 300% since the outbreak of the coronavirus.
Big League Sports Entering The Fray
Virtual sports are also a big part of the Esports explosion. Competition in soccer, basketball, tennis, horse and greyhound racing are among the many virtual sports on offer.
There are events built around tournaments in such popular sports-themed video games as Madden NFL, NBA 2K20, FIFA, and NHL 20.
The major sports leagues already recognized the potential for virtual spots as a revenue growth stream. Both the NBA and NHL began holding tryouts to pick players to form virtual versions of their actual teams that would eventually compete in simulated leagues.
During the COVID-19 outbreak, the big leagues are looking to get in on the Esports explosion and keep their sports going at the same time.
NASCAR has been holding the eNASCAR Pro Invitational iRacing Series, where actual NASCAR drivers compete in races as their virtual selves. The simulations are carried live by Fox Sports and are proving to be a big hit with racing fans.
The Nielsen ratings for the first event of the iRacing Series came in at an average of 638,000 households and 903,000 viewers, making it the most-watched Esports event of all-time.
By comparison, live NASCAR racing during the 2019 NASCAR Cup Series averaged 2.1 million viewers per race. NASCAR’s iRacing ratings are almost on par with the 2019 numbers for viewers of their second-tier racing competition, the NASCAR Xfinity Series. Those races averaged 725,000 homes and 948,000 viewers.
Formula One is also contesting virtual Grand Prix races, with its drivers racing as their virtual selves. Australian SuperCars competition is doing likewise.
Other sports also are holding Esports competitions to give their fans a regular fix during the coronavirus quarantine. The NFL organized a Madden tournament featuring eight current NFL players. The NBA put together an NBA 2K20 tournament with 16 current players in action.
The most ambitious of these virtual sports simulations is currently being undertaken by Major League Baseball. An MLB The Show competition is pitting 30 of today’s MLB players, each representing their own team.
They are playing a 29-game regular season, facing each other player once. The top eight players will qualify for postseason play, which will lead to a virtual World Series champion being crowned.
Other sports have opted to take their Esports competitions in an entirely different direction. With the Australian National Rugby League season on hold, instead of their slated match, members of the Canterbury-Bankstown Bulldogs and Wests Tigers competed in a game of Fortnite that was live-streamed on both team’s Facebook pages.
Esports Future Bright
During the 2004-05 lockout that wiped out the entire NHL season, poker utilized that opportunity to fill the broadcasting void left by no hockey and became a television staple.
COVID-19 has created a similar opportunity for Esports to grow exponentially and gain a foothold with a mainstream sports audience that might not have given it a second thought otherwise.
Esports was growing rapidly regardless. As one of the few sports still currently playing, its already bright future is blossoming with significantly more glow.
eSports
Abios names co-founder Anton Janér as new Managing Director
Abios, the esports subsidiary of Kambi Group plc, has appointed CTO Anton Janér as its new Managing Director, succeeding Abios’ long-term CEO Oskar Bonnevier Fröberg who has stepped down to pursue new endeavours.
Having co-founded the company alongside Fröberg in 2013, Janér assumed leadership of Abios as Managing Director effective from 1 May. He brings extensive experience in technology to his new role, as well as a deep understanding of the esports market, and as CTO was instrumental in the development of Abios’ market-leading esports solutions.
Spearheaded by Fröberg for more than 10 years, Abios has witnessed incredible growth since launch, expanding the company to reach millions of esports fans, power scores of businesses in esports, media, betting, and entertainment sectors, and employ roughly 70 people worldwide.
Furthermore, Fröberg successfully navigated Abios through its acquisition by Kambi Group, a leading sports betting technology company, in 2021. Bonnevier Fröberg played a pivotal role in ensuring a smooth integration within the Kambi Group, further solidifying Abios’ position within the esports betting landscape.
Janér said: “I am honored to take on the role of Managing Director and lead Abios into its next chapter. Oskar and I have had a lot of fun together throughout the years at Abios, building the company into the industry leader it is today. I am very excited about the future of Abios and eager to take the business to new heights alongside our excellent team.”
Fröberg added: “It is with mixed emotions that I have resigned as CEO of Abios. This decision has not been an easy one, as I have dedicated more than 10 years of my life to building and leading this organisation together with Anton. However, we could not have found a better home for Abios than Kambi nor could I have found a better successor than Anton, giving me every confidence that Abios will only flourish moving forward.”
The post Abios names co-founder Anton Janér as new Managing Director appeared first on European Gaming Industry News.
Angela Bernhard Thomas
CAPCOM’S STREET FIGHTERTM 6 GOING TO COLLEGE THIS FALL
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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.
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