Top five by 2024? RTSmunity tracks the growth of esports betting

The overall esports betting market size is projected to double in 2020, from $7 to $14 billion, but how does this total number translate to both gross gaming revenues (GGR) and profits for esports operators? 

Writing for the latest issue of SBC Magazine, Ondřej Šilhavý from RTSmunity said that the GGR generated by esports betting globally – tracking at $343 million for 2020 – is expected to reach $862 million by 2024, placing it in the top five sports worldwide.

To read the article in full, click HERE.

This $862 million figure, as presented by data from H2 Gambling Capital, would equate to 3.2% in terms of esports’ share of global sports betting GGR (excluding horse and dog racing), against 1.6% in 2019 ($247 million GGR) and an estimated 2.1% for 2020. 

In May of this year, albeit influenced by the COVID-19 lockdown, GGR for esports in the UK alone nudged the $6 million mark (£4.6 million). Outside of the UK, and Asia of course, the size of the opportunity is highlighted in other countries with a big esports fanbase. 

For example, Russia has 25 million fans and an esports betting market currently accounting for just 7% of its total betting volumes. Meanwhile, the US – another notable esports hotspot with 12% of the global fanbase – creates just 11.8% of the sector’s GGR against 40.7% in Europe from 16% of the fans.

And what about profit margin? Šilhavý explained that operators are “not running en masse into esports betting” as the industry average fluctuates between 1-5%, against 7-8% for sporting events. However, he stressed that RTSmunity’s average profit margin of 10%+ in 2020 paint sa completely different picture.

Click HERE to read the full article from RTSmunity (Page 18-21).