In recent years, interest in eSports (electronic sports) has been growing rapidly, driven by the new online games and technologies. Today, hundreds of millions of people all over the world watch eSports. Both amateurs and professionals play against each other online or at events in indoor arenas, usually for cash prizes. Multiplayer online battle arena (MOBA) games such as Dota and League of Legends are popular to play and watch.
Legalizing sports betting and eSports betting
Today, more U.S. states are legalizing online sports betting which presents a big growth opportunity. Sports betting apps enable gamblers to place bets from their mobile devices.
The federal government officially recognized eSports in 2013. The United States Esports Federation (USEF), a non-profit organization, helps to advance eSports across the country. Some regulators fear legalizing eSports betting because they make the assumption that itβs more risky than conventional sports betting.
Working with stakeholders enables them to understand the eSports ecosystem. Stakeholders in eSports include game publishers, tournament organizations, and official associations. There are more than 45 established national eSports associations.
Is it a game or a sport?
There is still some resistance as to whether eSports can be considered a sport. There are similar elements to sports such as teams, fans, arenas, and merchandise. It also involves humans competing against one another. However, eSports also share key characteristics with video games, including clear objectives such as completing missions, defeating opponents, or achieving specific goals.
In eSports, outcomes happen in a virtual world and are orchestrated by human beings in the real world. The players must interact with a human-computer interface connecting their bodies to the electronic system.
Specific genres of eGames include multiplayer online battle arenas, first-person shooter games, real-time strategy games, collectible card games, and sports games. These genres form many different subcultures within eSports.
Platforms, teams, and brands
Twitch is the main online streaming platform for gamers with more than 15 million visitors every day. Fans can watch eSports matches, streamers, and more. Twitch users are mostly males between the ages of 18 and 35. Other platforms where fans watch eSports include YouTube, Facebook, Caffeine, and Mixer.
Teams are bought and sold for millions with investments from celebrities, sports clubs, and venture capitalists. Many large sports clubs are involved with eSports and have bought existing teams or hired their own players. U.S. sports broadcaster, ESPN, has its own eSports brand. As eSports appeal to a key demographic, this attracts brands who want to appeal to it.
Economics
According to US gambling market data, eSports revenue is expected to reach $1,236 million in 2025. This shows the potential of this lucrative industry. There has been an effort on the part of private and public actors to introduce eSports across the country. Leagues function pretty much like any other sports leagues.
Operators pay players and distributors pay operators for the rights to broadcast games. Spectators pay for the right to watch and advertisers pay to feature alongside games.