eSports
Sergey Portnov: Perspectives & predictions
Speaking at PM:GO: In Touch with the Future, Parimatch CEO Sergey Portnov opened the floor to questions on topics ranging from why Parimatch and Conor McGregor are a great match, how to survive in a crisis, to predictions for the betting industry and sport in the wake of COVID-19. In typical fashion, Sergey spoke candidly to give the audience insights into some of the most pressing industry issues as well as his plans for Parimatch…
The esports boom
Parimatch is one of the few betting companies to have already shifted its focus to esports – and we are now looking to consolidate our position in the sector. Parimatch has a dedicated team with influential leaders responsible for our development strategy for esports. We will continue to seek out sponsorship deals in the esports sector and innovate our esports offering. The reality is that esports is here to stay and this is not just a temporary attempt to participate and jump on the hype bandwagon. Esports is in our DNA, it is our top priority.
With sports fixtures cancelled across the world, many sports fans have turned to esports, and the popularity of esports will continue perhaps even with the return of sports matches. Looking to the near future, it might be that traditional sports matches are held without crowds of people. For the betting industry, it actually doesn’t matter. We just need the match to take place and to be broadcast. Looking further ahead, there will likely be plans drawn up to avoid having to stop all sport like this again, and there will be conditions agreed for how the sport industry can continue to operate if faced with another situation like the one we’re in now.
At Parimatch, we are also considering creating our own sports, to increase the opportunities for betting and entertainment for our players. For example, we could broadcast penalties, involving just a player and a goalkeeper. During normal times, you don’t have these kinds of ideas – which is why a crisis can be an opportunity to innovate.
Emerging from a crisis stronger and faster
With sports fixtures cancelled around the world, betting companies are seeing the majority of their players fall away. The challenge is how to engage wider audiences with simulated sports – and this is a challenge shared by all bookmakers who have been affected by the COVID-19 crisis.
Some operators will withstand this crisis better than others, because they have adapted their business model, by pivoting to online casinos or adding alternative sports – such as FIFA and table tennis.
Although Parimatch has been affected, we are poised to be one of the structural winners to emerge from the crisis, as we are adapting and finding new solutions so that we remain one step ahead. In every sector, this is great time to optimize your business, identify weak spots in the company and fulfil goals that have been put off.
For me personally, I feel comfortable during a crisis, maybe because I love fighting and it has given me the fighting spirit that you need to prosper during difficult conditions. My advice to those who struggle is to always stay calm to avoid being guided by emotions and making rash decisions under pressure. A person who can distinguish between truth and artificial pressure will be right in their decisions.
Parimatch & The Notorious: A meeting of minds
Our contract with UFC was a prerequisite for Conor as our brand ambassador – and Conor is picky, he doesn’t just collaborate with any brand for money. It was our connection to UFC that initially attracted him. But why did Parimatch choose Conor? Firstly, because there a few examples of celebrities who have really changed their industry. Conor is one of those few people – he has made the UFC popular globally, bringing MMA into the mainstream. In fact, Conor is the face of MMA, and has attracted millions of fans to UFC not just because of his fighting skills, but for what he does
outside the ring. He can gather a crowd of people at a click of a finger – you could say he is a great magician! That kind of power and energy is what we wanted for our brand.
In the ring: Beating the competition
At Parimatch, we of course keep an eye on our competitors, but we mostly compete with ourselves – not on a personal level, but on a company wide scale. We are focused on meeting our own goals, and not trying to copy competitor products, no matter how great they are. We know our weaknesses as a business and we know how to fight them.
For Parimatch, the main priority is solidifying our position as a technology company. Already 99.9% of our business operates online and 70% of it is mobile based. However, we want to become a leading technology business, and not just within the betting sector. We want to be a role model for related industries. We know this may take a few years, but we are confident that we will do it – and will become one of the very few betting companies to have made a major technology breakthrough.
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Angela Bernhard Thomas
CAPCOM’S STREET FIGHTERTM 6 GOING TO COLLEGE THIS FALL
- CSMG will create and operate College Street FighterTM Tour in North America for the 2024-25 academic year
- College conference Street Fighter 6 champions will punch their ticket to the national Collegiate Esports Commissioner’s Cup (CECC) & May Madness in 2025
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
ESIC Announces Establishment of Global Esports Industry Advisory Board
The Esports Integrity Commission (ESIC) is pleased to announce the establishment of its Global Esports Industry Advisory Board, designed to enhance integrity and ethical practices across the esports landscape. The Advisory Board will serve a pivotal role by providing expert advice to ESIC’s Chief Executive Officer on a range of critical industry issues.
The primary function of the Advisory Board is to create a robust framework for integrity and fairness, setting a global benchmark for ethical conduct and fair competition in esports. The board will offer strategic insights, help shape policies governing fair play, liaise with key industry stakeholders, and act as ambassadors advocating for ethical practices.
ESIC has appointed two highly esteemed members to inaugurate this board:
- David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG), joins the Advisory Board with over fifteen years of experience in the video games industry, including significant roles at Activision-Blizzard and Electronic Arts. David’s profound impact on international and public affairs initiatives makes him an invaluable addition to the board.
- Robbie Douek, CEO of BLAST, also joins the Advisory Board, bringing a wealth of experience from his roles at Google and Disney, along with his leadership through major acquisitions. Robbie is celebrated for his strategic leadership and his instrumental role in elevating esports to a significant global entertainment platform.
The formation of the Advisory Board is an engagement that underscores the commitment of its members to upholding and promoting the highest standards of integrity within the esports industry. The board will meet as required to address strategic challenges and ensure that ESIC’s initiatives effectively meet current and future industry needs.
“Both David and Robbie bring a remarkable depth of knowledge and a passion for advancing the integrity of esports,” said Stephen Hanna, CEO of ESIC. “Their expertise will be crucial as we navigate the evolving landscape of esports and strive to maintain the integrity that our community expects and deserves.”
Robbie Douek, CEO at BLAST, said: “I’m honoured to be given the opportunity to support the Global Esports Industry Advisory Board and ESIC in their ambition to create the best and fairest environment possible for players, teams and fans.”
David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG) also commented: “It is a true honour to join the Global Esports Industry Advisory Board and support ESIC’s successful journey. Fairplay and integrity are at the core of esports. We owe it to the players and to the fans and for a better endemic industry governance”
The post ESIC Announces Establishment of Global Esports Industry Advisory Board appeared first on European Gaming Industry News.
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