In simple terms, e-sports can be described as a competitive gaming league. While it started way back in the 90s, it gained deep roots in the mid-2000s. The financial and economic aspect became clearly evident in the 2010s and up to date the industry has generated billions of dollars.
Nature and Structure of E-Sports Gaming Leagues
Just to get a clear picture of how revenue and profits in the eSports and sports betting industry are generated; it’s best to first get a brief overview of the nature and structure of e-sports gaming leagues.
The league, in many ways, resembles the conventional and traditional sports leagues in basketball, baseball, football and the rest. For one, the teams in e-sports leagues are owned by either a person or an entity that represents a group of people. This is a professional outlook that is topped off by managers, directors and coaches who are hired to run and train the teams. Again, just like conventional teams, these e-sports leagues have fans and spectators as well as mediums in the form of broadcasting and streaming services that allows for viewership.
As of mid-2015, there are over 205 million people across all continents who, either take part in or watch e-sports gaming tournaments and other events. This is actually a significant number – in fact – it, by far, surpasses the number of people who watch football matches – which is a little over 112 million during Super Bowl matches. E-sports viewership continues to grow by the day and is expected to rise exponentially in the near future.
The Big Money Connection
Billions of dollars are generated every year from events and activities associated with e-sports gaming leagues.
Large corporations, some of them Fortune 500 companies, have endorsed e-sports teams and league tournaments in one way or another. This translates to hundreds of millions of dollars being transacted.
Sports-betting is another area of key interest as regards e-sports. Wherever there is some sort of competition and especially of the sporting nature, betting is something that almost immediately follows. Several app developers have come up with platforms with all sorts of features designed to facilitate betting processes. Some have even gone the extra mile by including some sort of brief background history about the competing teams so that interested parties can make calculated and informed decisions when placing their bets.
This is something that has attracted big names like NBA honcho, Mark Cuban, to invest in the industry. Last year the industry generated 4 billion dollars and by the end of this year’s second quarter the industry had already produced 195 million dollars in profit. It is expected to have produced 400 million dollars in profit by the end of the year. Millions of dollars is also being invested in constructing arenas & stadiums, hosting events and marketing campaigns.
The Legality and Laws of Sports Betting
This has been a contentious issue for years now. While the law is clear on some areas, there seems to be grey areas and loopholes in the law governing online Sports betting industry. Only 4 states in the US allow sports betting; that is, Nevada, Montana, Delaware and Oregon. There is a lot of confusion when it comes to online sports betting. The general idea is that while it is “somewhat” illegal, betting from an international location is allowed. Legislation is however changing and the laws will become clearer in the near future.