How the pandemic spiked eSports gambling

In 1980, the first Space Invaders Championship marked a groundbreaking moment in gaming history. As one of the earliest competitive gaming tournaments, it attracted over 10,000 players from around the world. Few participants could have anticipated the immense growth of eSports competitions that would follow. The establishment of Major League Gaming (MLG) in 2002 catalyzed a surge in competitive gaming’s popularity, fostering the growth of a lucrative industry. Alongside this rise, the eSports gambling community began to flourish, mirroring the industry’s expansion.

The COVID-19 pandemic in 2020 further accelerated the growth of eSports gambling, resulting in record-breaking revenues and an expanding player community. This surge offers insights into the future trajectory of the eSports industry, indicating a robust and continuously evolving market. Let’s delve into the factors behind this spike in eSports gambling and explore what it might signify for the industry’s future.

Sports Shutdown

The global pandemic led to widespread lockdowns, resulting in a complete cessation of competitive sports. Iconic events such as the Premier League, UEFA Euro 2020, and numerous Formula 1 Grands Prix were either canceled or postponed. This unprecedented pause had profound impacts on the sports betting industry and the community of fans who relied on these events for their regular betting activities.

The halting of these high-profile competitions left a void for sports enthusiasts and bettors alike, who were accustomed to the excitement and engagement that these events provided. With the suspension of such significant fixtures, the sports betting community faced an unexpected challenge, disrupting the usual rhythm of placing bets and following their favorite teams and athletes.

As a result, the sports betting industry experienced a substantial downturn. The lack of live sports events meant fewer opportunities for fans to engage in betting, leading to a notable decline in betting activity and revenue. The absence of these events underscored the industry's heavy reliance on a steady stream of live sports to sustain its operations and keep the betting community active and engaged.

In response to this disruption, many bettors began to explore alternative forms of entertainment and gambling. This shift led to an increased interest in eSports betting, online casino games, and virtual sports, which provided a new avenue for fans to channel their competitive spirit and betting enthusiasm. The adaptability of the sports betting community highlighted its resilience and capacity to find new opportunities even in the face of significant challenges.

Overall, the pandemic-induced sports shutdown marked a pivotal moment for the sports betting industry. It underscored the critical role of live sports in driving betting activity and highlighted the need for the industry to diversify its offerings to mitigate future disruptions. As sports gradually resumed, the lessons learned during this period have prompted the industry to innovate and expand, ensuring a more resilient and dynamic future for sports betting.

With around 21% of all football fans in the UK also being part of the football betting community it is clear to see the seismic impact that cancellations have had on the industry. 

Acceleration of Digital Industries

The pandemic acted as a catalyst for the digitalization of nearly every aspect of our daily lives. Lockdowns and social distancing measures compelled societies to adopt new methods to maintain functionality. This led to the rise of remote work and hybrid workplaces, utilizing platforms like Zoom and Teams to operate businesses online. Additionally, there was a swift integration of digital wallets into our everyday transactions.

One sector that experienced a significant shift was the gambling industry, which saw a dramatic increase in online activities. The development of online casinos surged, offering the gambling community a digital platform to continue their hobby. This transformation not only sustained the industry during challenging times but also set the stage for a more digitally-driven future.

A casino would offer a promotion enticing many traditional gamblers to this new format, allowing online casinos and betting platforms to become hugely popular due to the attractiveness of many of these online casino bonuses. This emergence of digitalized gambling platforms coincided with the rising popularity of eSports. Players could now watch and place bets on eSports competitions directly from their phones, offering a convenient way to engage in gaming and betting activities while confined to their homes.

Development of eSports

The eSports industry has experienced exponential growth in recent years, with numerous advancements further enhancing its popularity.All the most popular online multiplayer games such as Counter-Strike 2, Apex Legends, EA FC 24 and League of Legends now possess established professional leagues and tournaments, backed by huge marketing campaigns and offering substantial financial prizes to those who come out on top. 

Development of eSports

For instance, the professional Counter-Strike 2 tournament, the ESL Pro League, offers a $1,000,000 prize for the winner, underscoring the growing financial clout of professional eSports. This development has fostered a journalistic community dedicated to the game, covering everything from results and tactics to player rankings. This momentum has attracted major companies like Coca-Cola and Red Bull, which now sponsor teams and leagues, and high-profile celebrities endorsing eSports. As a result, eSports have become significant players in the entertainment industry, rivaling traditional sports, film, and TV. The industry has expanded its reach beyond gamers, drawing a wider audience, including the sports betting community.

Where is eSports Gambling Now?

The eSports and eSports gambling industries saw a significant surge in popularity during the COVID-19 pandemic. The key question now is whether this interest has diminished following the end of lockdown measures. The simple answer is no; in fact, both industries have continued to grow in both popularity and revenue. Many factors contributing to the spike in eSports popularity during the pandemic, such as the advancement of digital industries and technological innovations, have persisted beyond the pandemic. The pandemic acted as a catalyst, accelerating the development of these industries. The global eSports betting market is now projected to reach nearly $2.5 billion by 2028.

Despite this rapid growth, several issues need to be addressed to ensure a safe and responsible environment for players. The online nature of eSports gambling makes it susceptible to fraudulent activities and scams, as well as the ongoing threat of data breaches and cyberattacks. Developing robust cybersecurity systems will be essential to protect vulnerable players when betting online. Additionally, the rapid market expansion has led to regulatory challenges, with many countries lagging in establishing suitable legal frameworks to ensure transparent operations. Open discussions between regulators, betting companies, and representatives from the betting community will be crucial to maintaining a safe gambling environment.

Looking at the figures, eSports gambling will continue to grow, and it's vital to ensure that this growth happens responsibly and sustainably.