For many bettors, esports might seem like something played by the kids in Stranger Things or Cobra Kai. And it’s true the teen demographic gravitates towards hot esports titles like Overwatch and Fortnite.
But Overwatch and Fortnite aren’t the two most prize-awarding esports titles globally. Two series with roots in the early 2000s are, according to USA Today – Dota 2 and Counter-Strike: Global Offensive.
“This is a misconception among many media companies and bookmakers that esports is still for the younger kids,” Oddin Co-Founder and Managing Partner Marek Suchar says. … But we are speaking about millennials in their thirties because popular esports titles like Dota, Counter-Strike, and League of Legends have been around for more than 10 years. Those people played it, watched it, and continue to do so. It is more appealing to watch an esports match for some of them than an NFL or soccer match.”
Oddin, a Czech Republic-based provider of esports odds feeds, risk management, and in-play betting solutions, recently announced it has been granted permission to take bets on esports in New Jersey. Colorado, Michigan, and Ontario, Canada also are on the company’s radar.
Currently, legal esports betting in some form is limited to Colorado, Nevada, New Jersey, Tennessee, Virginia, West Virginia, and Washington. But states reluctant to adopt esports gambling may be missing out on lucrative additions to their coffers.
According to a report issued by Newzoo, a Netherlands-based analytics and market research company, esports revenue was estimated at $1.08 billion in 2021, a year-over-year growth of 14.5%. The audience for live-streaming esports contests was expected to reach 728.8 million in 2021, a 10% increase over 2020, and could grow to 920.3 million by 2024.
Oddin’s research indicates around 40 million esports fans in the U.S., more than 10% of the country’s population.
“These are eyeballs that are watching, playing and doing other stuff around esports,” Suchar says. “They understand it.”
Suchar thinks that adults who played these titles as kids belong to a higher income bracket, as high-end computers to play these games when released were not cheap. This, Suchar opines, translates to financial means and discretionary income to wager on esports.
“This is exactly the sweet spot, when those people are in their thirties,” Suchar says. “They have a career started up, they probably have started or are starting a family, but at the same time their income is significantly higher than the average income of the population.”
Suchar says Oddin differentiates itself from competitors by providing access to the most in-game esports betting options through a fully automated AI platform that processes various sources and calculates live betting opportunities. He says that Oddin can provide uptime of 80% and that there are usually 16 betting markets, ranging from live match scores to map winners, available during competitions.
“Where you want to have the most engaging solution is when the match is being played, that way the bettors can actually bet as it is being played,” said Suchar.
Steve Ruddock, content director for BettingUSA.com, says the substantial international market for esports betting hasn’t yet been matched in the U.S. Ruddock cited the lack of jurisdictions where esports betting is available and noted that Indiana, Iowa, and Pennsylvania expressly forbid esports betting.
But he thinks esports can inject revenue in the U.S. gaming market if some obstacles and biases against it are overcome.
“Esports fortunes in the U.S. are likely to change in the coming years, as esports betting is an untapped market and provides a tremendous opportunity for innovation,” said Ruddock via email. “Of course, that assumes states overcome their concerns about match-fixing (in lower-level leagues) and the often young age of competitors.”
