The eSports betting industry in the United States has witnessed significant growth, marking a new era in online gaming and sports betting. The market, which stood at $9.75 billion in 2021, is forecasted to soar to $35.56 billion by 2031. The surge underscores the increasing integration of eSports with traditional sports and the evolving dynamics of the betting industry.
In 2023 alone, the eSports betting market is estimated to achieve a revenue of $2.1 billion, with a projected annual growth rate of 9.22% from 2023 to 2028. By 2028, the U.S. market alone is projected to expand to $1.1 billion, with trusted non-UK casino platforms playing a key role in this expansion.
Factors Fueling the Growth
A combination of unique and interrelated factors influences the expansion of the eSports betting sector in the United States. The onset of the COVID-19 pandemic played an instrumental role, catalyzing accelerated growth. With traditional sports events being canceled or postponed during lockdowns, a significant shift in audience interest toward virtual sports and eSports events was observed. The transition was not just a temporary diversion but marked the beginning of a sustained engagement with eSports.
Mobile eSports, in particular, experienced a rise in popularity during this period. In 2022, half of the top 10 most-watched eSports events were mobile eSports competitions, highlighting a shift in the eSports landscape towards mobile platforms. Mobile Legends: Bang Bang (MLBB) alone accounted for four top events.
The trend towards mobile gaming has broadened the accessibility of eSports, allowing a more diverse audience to engage with these events, thereby expanding the potential market for eSports betting.
Additionally, the United States has seen a significant uptick in eSports viewership. The data for 2023 shows that eSports viewership in the US has reached approximately 46 million, a testament to the growing appeal of eSports among American audiences.
The increase in viewership directly correlates with the rise in eSports betting activities as more people tune into eSports events, the interest in betting on these events naturally escalates, creating a dynamic and ever-growing market for eSports betting.
eSports Betting Versus Traditional Sports Betting
Source: applause.com
Esports betting is distinct from traditional sports betting in various ways. It targets a younger, more digitally engaged audience, employs unique marketing strategies like humor and memes, and offers creative betting options such as in-game events betting. The approach aligns perfectly with the digital and demographic trends of the current era as traditional sports grapple with an aging audience.
At the same time, eSports appeals to a younger demographic, with the average eSports spectator being 26 years old.
Legalization and Regulation in the USA
The past few years have seen a significant increase in the number of states in the USA legalizing various forms of gambling, including eSports betting.
As of 2023, 37 states, plus Washington, DC, have operational sports betting, with more states actively including eSports betting in their legislation. The trend is expected to continue, making eSports betting more accessible to millions of US citizens and becoming a crucial market for betting companies in 2023.
Source: smartlaunch.com
Final Thoughts
The rise of eSports betting in the USA is not just a trend but a significant sector aligning with current digital transformations and demographic shifts. With traditional sports adapting to the digital landscape, esports betting is poised for continued growth, buoyed by an enthusiastic, young audience and innovative betting possibilities.
