COVID-19 has propelled esports betting and online gaming to another level, from which there will be no going back, according to a panel discussion Tuesday that kicked off the digital rendition of Casino eSport Conference.
“Looking forward, online and digital new-age gaming solutions have been accelerated, especially with esports, including esports betting and tournaments, because of COVID,” said William Webb, the CEO of Jackpot Rising, which powers competitions through mobile, computer, virtual reality, and arcades.
“The industry was headed that way in general, but COVID has really been an accelerant,” Webb said. “COVID showed that with sports being taken away, sports betting has been a hot topic since the U.S. Supreme Court ruling two years ago (that legalized it nationwide). We power real-money entertainment that’s accessible twenty-four-seven from your couch. You don’t have to wait until Sunday NFL games to come for there to be any action. COVID showed when no sports are being played, there’s no betting.”
Webb said casino operators have been slow to move, even though the industry is headed that way. It’s like the office industry that found out with COVID-19 that companies can have their employees work remotely.
“I don’t see it going back to how everything was, but obviously there’s going to be a return to some form of normalcy,” Webb said. “Operators are a lot more open to additional offerings and can see there needs to be differentiation and embracing of new-age gaming. I feel like this was a big eye-opening moment that there’s a big need for that. We’ve been pushing for more than five years to bring new forms of real-money entertainment that can fit the younger demographic. My age and younger are not pulling the levers yet; eighty percent of the casino floor is still filled with slots. The industry is open to or at least accelerated discussions of new-age gaming solutions.”
Robert Heller, casino investment banker and CEO of Spectrum Gaming Capital who moderated the panel discussion, said the opportunity is there for the casino industry. The panel estimates betting on esports worldwide is understated and that it’s higher than the $18 billion handle, much of it taking place in the illegal marketplace.
“COVID has shown there’s tremendous opportunity,” Heller said. “It’s not big enough yet. All the casinos are watching it as an adjunct to sports betting, but it’s fraught with its own issues. The regulators don’t really understand it and have concerns about it, because it’s complicated and based on games and technology that are somewhat unfamiliar to most regulators.”
Most casino executives don’t play games and much of the demographic that does skews younger, Heller said. The ability to create betting propositions is higher than regular sports, due to the digital nature of the game, he said.
“To say it’s coming is an understatement,” Heller said. “It’s so potentially big over time. So many more people are playing this than sports, and people are watching this like you do football or golf. The kids who play these games love it. Ultimately, they will be spending money when they have the opportunity.”
COVID-19 has also shown that traditional sports bettors will bet on virtual sports in video-game form, such as FIFA and Madden NFL. Gaming companies that focus on it first or early on will benefit the most in the long run, Heller said.
“It’s a monumental thing, though it’s hard to get your hands around who’s going to make money at it,” Heller said. “None of the companies in this space make any money, but how many of the sports betting companies worth tens of billions of dollars make any money?”
