If you were in any doubt that esports was on the verge of becoming one of the most significant verticals in online betting, the appointment of Jan Jones Blackhurst to the board of Esports Entertainment Group (EEG) in May should have been a clue to think again.
Blackhurst – a member of the Gaming Hall of Fame – is a true veteran of the industry; she worked for Caesars Entertainment from 1999, later going on to serve as executive vice president.
She was the first woman to serve as mayor of Las Vegas and did so from 1991 to 1999. She is currently on the boards of Caesars and gambling business incubator UNLV Black Fire Leadership Initiative. In other words, she has some serious credentials.
In April, Blackhurst ran into EEG CEO Grant Johnson at London’s massive gambling trade show ICE. The two got talking about esports, with Blackhurst significantly impressed by the vertical, and EEG’s role in it, that she accepted a position on the esports betting company’s board.
“I believe that esports is going to be one of the most significant gambling verticals of the future, and I think EEG is on the cutting edge of finding a platform and a way to distribute that product in a meaningful way to younger players, and even to casino customers”, Blackhurst told Yogonet, in an interview at the end of last month.
“I think I can help the company look at opportunities to integrate their products into a casino environment in a successful way, and I can also be of regulatory assistance”, she added.
The global esports market was valued at around $2,008.4m in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 21.9% between 2022 and 2030.
Live streaming platform Twitch reported fans spending 24 billion hours watching streamers in 2021, a 45% increase compared to 2020, which among other factors has led analysts to conclude that media rights for esports will expand at a CAGR of more than 23% between now and 2030, making it one of the significant revenue-generating segments.
According to Grand View Research, the U.S. is at the vanguard of this emerging market and has been for several years. North America recorded a revenue share of more than 37% in 2021. This is expected to grow due to the North American League of Legends Championship Series and the new Overwatch League creating huge platforms.
The pandemic was also catalyst for growth in esports. As traditional sports shut down viewing of, and betting on, esports grew and was picked up by new audiences. While some live events had to be cancelled, as was the case in traditional sports, some reached new audiences via broadcasts that would not have occurred otherwise.
In a post published by the World Economic Forum in May 2020, it was suggested that the pandemic may “lead to the normalization of esports”. The post mused that: “At the very least, the pandemic has reminded media companies and brands that there remains an addressable market of highly engaged consumers. Recent developments will likely inch esports towards the mainstream. The earliest proof point is the state of Nevada, which legalized betting on competitive gaming just two weeks into confinement measures in the U.S.”
While the vertical is building undeniable momentum, Blackhurst admits it’s not yet on a level regulatory footing with traditional gambling or sports betting. “Right now, I don’t think the esports industry has evolved to where they are able to offer on a broad scale, and some sites are operating in a gray market, meaning they are sort of outside the regulatory environment”, she told Yogonet.
But regulation is an area Blackhurst believes she can help with. EEG is currently approved to operate in New Jersey, so it has 50 states to conquer with Blackhurst’s help.
She says in Las Vegas “you have everyone looking at esports”. Black Fire, the gambling incubator she works with, has its own esports stadium where one competition attracted more viewers than the total viewership of the basketball national final playoffs.
“We know the market’s huge”, she says, “what we now want to understand is how do we engage those esports customers who are legally of age and offer them a betting opportunity on the games they love.”
With Blackhurst fighting its corner, it seems unlikely that esports will stay in the shadows for much longer. It has long required a stronger regulatory framework to assist with betting integrity as much as any of the other issues that run alongside unregulated gambling verticals. Perhaps Blackhurst will bring the seal of legitimacy the burgeoning industry has been looking for.
