The esports industry and digital entertainment are undergoing substantial changes, driven by technological advancements, corporate mergers and evolving consumer behaviours. This overview examines the convergence of gaming, streaming and wagering, emphasising key trends shaping the future of esports and its integration into mainstream entertainment.
Expanding access to gaming: Amazon Fire TV and Xbox
One of the most significant developments in increasing the accessibility of gaming is the partnership between Amazon and Microsoft. Amazon's Fire TV devices now allow users to play Xbox games directly, removing the need for a dedicated gaming console. This effectively lowers the barrier to entry for potential esports enthusiasts.
Fire TV devices are in over 50 million homes worldwide, and Xbox has an estimated 90 million active users. The potential reach of this partnership is vast, making it a critical opportunity for growing the esports audience. With such access, the integration of esports into mainstream digital entertainment becomes increasingly seamless, as millions of users can now engage in gaming without additional hardware.
The growth of live wagering in esports
Esports has traditionally been viewed as competitive gaming. However, with the legalisation of sports betting in several regions and the rise of streaming platforms like Twitch (with 140 million unique monthly viewers) and Kick, a new market has emerged—live wagering on esports events.
The average esports viewer is young, tech-savvy and increasingly interested in wagering. 75% of esports enthusiasts are under 35, with many having grown up watching their favourite streamers on Twitch or YouTube. With the audience becoming of legal age for gambling, esports betting has gained traction, offering platforms the opportunity to tap into this lucrative demographic. According to industry estimates, the global esports betting market could surpass $13bn by 2025.
Platforms like Players' Lounge enable peer-to-peer wagering, allowing users to bet on their own gameplay. This democratises the esports betting experience, making it more interactive and personalised. As these platforms grow, they could reshape the esports economic landscape, driving growth beyond traditional spectatorship and into active participation.
DFS and esports wagering: A DFS perspective
Daily Fantasy Sports (DFS), which is popular among traditional sports fans, is also making significant inroads into esports. Platforms like DraftKings and FanDuel have introduced DFS formats for esports titles such as League of Legends, Counter-Strike: Global Offensive and Dota 2. DFS allows users to draft virtual teams of esports players, and their performance in real matches dictates the outcome of the competition.
This DFS approach appeals to both traditional sports bettors and esports enthusiasts. In fact, over 30% of DFS users under the age of 30 have participated in esports DFS contests, showing a strong overlap between younger demographics and this form of wagering. Esports DFS can drive engagement even further, creating another avenue for monetisation through a familiar, strategy-based gaming format.
Subathons and game resurgence: Their impact on wagering
Subathons, or marathon gaming sessions streamed live by popular personalities, are gaining traction in esports. These events often feature older or classic games and can significantly boost viewer engagement. For instance, Ludwig’s subathon on Twitch set a new record with over 282,000 subscribers, many of whom stayed engaged for the entire event. These marathon sessions provide extended opportunities for wagering, where viewers place bets on gameplay outcomes or in-game achievements.
For game developers, subathons highlight the long-term value of creating games with lasting appeal. Resurging games during these events also present new opportunities for esports betting, with platforms needing to adapt their odds and market offerings to accommodate older or less mainstream titles.
The future of esports betting: Filling the gap in traditional sportsbooks
Despite esports wagering gaining popularity, traditional sportsbooks have been slow to embrace the market fully. The global esports audience is expected to reach 577 million by 2024, yet many established bookmakers are hesitant to incorporate esports as a standard betting option. This gap presents an opportunity for specialised platforms to capitalise on the growing interest in esports.
Additionally, innovative technologies like cryptocurrencies and blockchain could play a key role in the future of esports betting. These technologies offer the potential for global transactions, reduced transaction fees and enhanced transparency, all of which are appealing to the tech-savvy esports audience.
The intersection of DFS and traditional wagering in esports
Platforms like DraftKings, which blend traditional betting with DFS, have the potential to further integrate esports into mainstream wagering. According to DraftKings, esports represents one of its fastest-growing categories, driven by over 1 million users engaging in esports contests in 2023. This combination of DFS and traditional wagering creates an ecosystem where users can bet on individual game outcomes and participate in larger, tournament-style competitions with their own drafted teams.
Conclusion
The esports wagering sector is poised for significant growth as new platforms and formats continue to emerge. While the industry faces challenges, such as responsible gambling and traditional sportsbook adoption, the opportunities are vast. With a young, engaged audience and innovative platforms driving new ways to participate, esports wagering will undoubtedly play a central role in the future of both digital entertainment and competitive gaming.
