Esports has seen a huge rise in popularity in recent times. The gambling value on esports contests has dramatically improved as competitive video gaming has been much less affected by the COVID-19 lockdown than its traditional counterpart – sports. With this in mind, investing in esports shares might be more tempting than ever, according to an analysis from This Money.
The analysis begins by pointing out that the global esports gambling market is expected to hit $200 billion by 2027, making it especially worthy of investing early. Investing demands less dedication than betting as it doesn’t require the investor to be as familiar with the esports scene.
Sports betting operator Entain’s CEO, Jette Nygaard-Andersen, used to play Counter-Strike, one of the most prominent esports games. Despite not competing currently, she still sees the opportunities that esports gambling presents, and her firm recently acquired Seattle-based esports betting platform Unikrn.
On a different note, this new acquisition sparked discussion on whether MGM will continue its efforts to acquire Entain. Earlier this year, the former party proposed a $10 million acquisition deal that ended up being refused.
Etain’s acquisition of Unikrn, on the other hand, isn’t an exception, but a tendency as other betting operators and various other companies have also been on the lookout to acquire an esports company or partner with one. For example, a few days ago, the cryptocurrency exchange Bybit struck a deal with the Ukrainian esports team Natus Vincere in order to slowly carve its way into esports. Other deals between gambling or crypto bodies and esports organizations or gambling operators have also seen a rise.
Some of the concerns people have when wondering whether to invest in esports gambling is the fact the industry is still on a bit of shaky ground because of its novelty. In some countries, the regulations are still being figured out and might tighten as gambling laws modernize to better suit contemporary technology.
This Money observantly points out that smartphones have changed gambling forever as now everyone has a “portable casino in their pocket.” Moreover, the COVID quarantine boosted not only esports betting but betting as a whole which has led to many anti-gambling activists voicing their concerns.
However, these concerns don’t mean one should throw the possibility of investing into esports gambling shares altogether. Despite the possibility of new gambling laws reshaping the market, the tendency is that there is some serious work put into expanding the esports betting ecosystem.