Why Smart Bookmakers Are Capitalizing on Esports Betting

Sportsbooks concentrate on essential markets, such as the MLB, NBA, NFL, NHL, college football, and college basketball. They pay so much attention to these markets because this is where the majority of fans are.

Esports betting, meanwhile, has yet to enter the realm of primetime traditional sports. It increases in popularity with each passing year, but it still hasn’t won over the bookmaking industry yet.

However, smart sportsbooks are already positioning themselves to take a large slice of the esports gambling pie. These operators realize just how big esports figure to grow. Below, I’ll discuss why competitive gaming figures to have such an impact on the betting industry.

The Traditional Sports Betting Market Is Well Mapped Out

No bookmaker can ignore popular markets and expect to stay in business for very long. They won’t get far by focusing on table tennis and the women’s senior volleyball tour.

This is the big reason why every sportsbook centers their marketing and promotional efforts on the most-popular sports. They want to take advantage of liquid markets and make more vig/profits.

The only problem with this approach, though, is that it fails to differentiate one bookmaker from the next. During the fall, for example, every sportsbook will plaster football graphics and lines on their homepage.

Bookmakers won’t stop focusing on the largest markets just because it’s cliché to do so. But they may be missing the chance to stand out in something else.

Esports Gambling Is Mostly Untapped

Offshore bookmakers do a good job of capitalizing on esports. Many Costa Rica-based online sportsooks have given esports its own section on their sites.

Of course, the offshore sector only represents a small portion of the industry. Most sports betting revenue now runs through regulated markets.

States and countries that regulate betting normally allow operators to advertise through mainstream outlets. This mainstream advertising makes legal gambling extremely popular.

The US betting industry has been booming ever since the fall of PASPA. Many states have taken advantage of their newly found right to legalize betting.

However, traditional sports are drawing all the of the love in these states. Esports gambling, meanwhile, is getting very little interest.

A few states do allow esports betting. By and large, though, most are just focusing on the major sports right now.

That said, esports wagering still remains largely untapped. Sportsbooks that struggle to shine in crowded markets could differentiate themselves from the competition by putting more focus on esports.

Little Overlap Between Customer Bases

Esports bettors aren’t exactly the same as the traditional sports betting crowd. Fans of competitive gaming often come to online betting sites for the esports alone.

As a result, bookmakers can recruit a new type of customer through gaming. Furthermore, they don’t need to worry about cannibalizing revenue from regular sports when adding lines on esports leagues and competitions.

Of course, some of those who come for video gaming may eventually get into regular sports betting as well. For example, an esports fan may have a mild interest in pro football. After registering for an account and making a deposit, they may decide to follow their interest by placing a few NFL bets.

Lots of Potential

I don’t suggest that smart bookmakers are targeting esports just for the novelty effect alone. Instead, gaming features loads of potential in the long run.

Esports have been increasing greatly in popularity over the past several years. Once a niche industry, they’ve risen to become a global phenomenon.

The interesting thing, though, is that the betting hasn’t caught up with the popularity yet. Numerous people watch live esports streams, but they’re not necessarily placing wagers.

As traditional sports show, betting and fan interest go hand-in-hand. It’s only a matter of time until esports popularity translates into more wagers.

That said, sportsbooks would be wise to strike before esports gambling grows bigger. They can get in on the matter early and establish themselves as a leading esportsbook ahead of time.

Still a Long Ways to Go for Esports Betting

Competitive gaming may boast lots of untapped potential to bookmakers. However, some major obstacles exist on the road to success.

Regulation is the biggest problem. Many states and countries offer legal sports betting, but they’re not keen on adding esports to the mxx.

The reasons vary for why state and national governments aren’t thrilled with esports betting. But one of the biggest dilemmas that lawmakers and regulators point to is the abundance of young esports pros.

Politicians have never been fans of allowing bets on young athletes. This is why the state will never legalize high school sports gambling.

Another problem is simply that esports are relatively new. They haven’t been around nearly as long as athletic sports and, as a result, don’t get much recognition from lawmakers.

In the US, for example, states were thrilled to legalize sports betting after PASPA was repealed. They wanted to quickly capitalize on what’s seen as a $5 billion per year industry.

However, the same states don’t yet see esports as a viable part of the market. They’re too busy pulling in tax revenue and benefiting from traditional sports.

Will Bookmakers Ultimately Embrace Esports?

Offshore sportsbooks are making far more money off competitive gaming than their regulated counterparts. After all, offshore bookmakers don’t have to deal with the same laws and regulations as legal sportsbooks.

The latter must wait for their local governments to approve the matter. Only then can they move forward and start profiting off esports.

But even when the option is available, not all sportsbook see video games as a priority. They’re mainly focused on the biggest current markets, such as pro baseball, basketball, football, and soccer.

This line of thinking will eventually change, though. Once esports become regulated in more states and countries, sportsbooks will start to take notice.

They can’t help but notice when considering how popular gaming has become within the last decade. The biggest events, such as Dota 2’s The International, draw millions of livestream viewers.

The way it stands now, esports will only continue growing in popularity within the coming years. Wise bookmakers should be doing whatever they can now to position themselves as a frontrunner in this market.

Conclusion

The exploding esports popularity is no secret. Competitions like Fortnite’s World Championship and League of Legends’ Worlds draw Super Bowl-like viewership.

However, the bookmaking industry has largely failed to capitalize on the betting side of gaming. Instead, offshore operators are the only ones truly taking advantage.

But this situation is all but guaranteed to change in the coming years. Sportsbooks in regulated states aren’t going to sit idly by while offshore bookies enjoy the spoils.

The smartest bookmakers are pushing for esports regulation. Once they receive the greenlight, they’ll position themselves as leaders in one of betting’s fastest growing markets.

Of course, it may be a few years before esports gambling becomes huge in regulated states/countries. It’s inevitable, though, that video gaming will be a larger part of the betting industry.