SBC News DATA.BET: esports a strategic growth avenue for operators

DATA.BET: esports a strategic growth avenue for operators

SBC News DATA.BET: esports a strategic growth avenue for operators
Bogdan Holovnov, Head of Esports at DATA.BET

Bogdan Holovnov, Head of Esports at DATA.BET, takes a close look at why esports is a valuable opportunity for sportsbook operators, elaborating on the key trends driving its growth, future potential, and ways that it could potentially reshape the entire industry.

SBC News: When you look at the position of esports betting within the context of the entire gambling ecosystem, how would you assess this current standing? 

Bogdan Holovnov: Esports betting has emerged as a vibrant and transformative segment within the gambling ecosystem. It introduces a fresh, rapidly growing market and provides access to a new demographic of bettors – those who are often disengaged from traditional sports betting. This ability to connect with new audiences highlights its strategic value for operators.

At the same time, esports comes with distinct challenges. Unlike traditional sports, the dynamic nature of esports – frequent game updates, team changes, and varied game mechanics – demands a departure from standard predictive models. Success requires high expertise and seamless collaboration between data scientists and trading teams. 

Well-structured processes are equally crucial to ensure esports trading remains both profitable and stable in this fast-paced environment.

In the broader gambling industry context, esports betting is not just a complementary offering but a strategic growth avenue that requires operators to adopt innovative and specialised approaches.

SBCN: Related to the previous question, what would you say needs to be done to improve the appeal to players and increase this share?

BH: A shift in perspective is required to improve the appeal of esports betting and increase its share within the gambling ecosystem – away from maximising short-term gains and towards fostering long-term growth of the esports audience itself. 

Rather than focusing only on extracting maximum value from the current, relatively limited base of esports bettors, stakeholders should work to expand this base by developing the esports ecosystem at its core.

A key strategy lies in integrating esports more deeply into everyday life, especially among younger generations. It includes initiatives to make competitive gaming accessible and normalised, much like traditional sports. 

For example, introducing esports-related programs in schools, as seen in Denmark, where students can study esports at over 100 boarding schools or as part of their high school curriculum, can play a pivotal role. Notably, Dennis ‘Sycrone’ Nielsen, the coach of MOUZ, semifinalists of the recent CS2 Major, was once a teacher specialising in the game at a Danish school. 

These programs should go beyond mechanical gameplay to focus on broader skill development, such as problem-solving, collaboration, communication, and cognitive abilities – skills that are beneficial for gaming and valuable in life. 

Positioning esports as a platform for intellectual and mental development can enhance its acceptance among parents and educators, encouraging greater participation from a young age.

Another critical aspect is creating pathways for amateur and grassroots esports participation. Just as football thrives on its accessibility, with local pitches, school leagues, and youth tournaments, esports must develop similar opportunities. 

Expanding regional leagues and supporting local teams can cultivate a larger, more engaged audience, many of whom will eventually transition into esports consumers and bettors.

Sustainable financing is also vital. While sponsorships from betting operators are an essential revenue source for esports teams, they should come with a long-term vision. Bookmakers should encourage clubs to adopt sustainable business models instead of simply injecting large sums of money for branding purposes. 

This approach would prevent clubs from collapsing once sponsorship deals end and ensure the stability of the esports ecosystem. These investments resemble venture capital funding for startups aimed at fostering the growth of esports as a whole rather than extracting short-term visibility gains.

In conclusion, the focus should not solely be on converting 80% of the current esports audience into bettors but on growing the audience. By supporting education, grassroots development, and sustainable business practices, the industry can create a robust and expanding ecosystem that benefits all stakeholders, including betting operators.

SBCN: What are the major trends that those within the space should be most aware of during the coming year?

BH: The most vital trends in esports betting revolve around expanding audience engagement and refining operational focus. First, the diversification of content and the inclusion of emerging disciplines are essential. 

Operators must effectively identify new esports titles with strong potential for player and bettor interest, leveraging data-driven insights to allocate trading and development resources wisely.

Second, personalisation remains critical. Bettors increasingly expect tailored experiences made possible through advanced AI and analytics that adapt to individual preferences. This, combined with the rise of micro-betting on in-game events, aligns with esports’ fast-paced, dynamic nature and enhances user engagement.

Focusing on these trends will position esports betting for sustainable growth and more significant market impact in the coming year.

SBCN: When looking at tournaments more specifically, which of these would you say prove to be the most profitable for operators?

BH: Tier-1 tournaments are the most profitable esports tournaments for operators, much like traditional sports. These events attract the largest audiences due to their high competition, featuring the best teams, players, and production quality, naturally attracting the most interest from bettors.

However, tier-2 tournaments also play a significant role. While individually less popular than premier events, their sheer number and availability throughout the year provide consistent opportunities for engagement. 

These tournaments bring substantial additional value by filling gaps between significant events, ensuring operators maintain activity and revenue streams year-round.

SBCN: What are the major challenges in navigating the seasonality of esports to ensure that a profit is being made?

BH: The major challenge in navigating esports’ seasonality lies in the limited number of profitable disciplines and their extended off-seasons. 

Unlike traditional sports, which offer dozens of disciplines played concurrently and with staggered off-seasons, esports currently relies heavily on just four primary titles – CS, Dota 2, LoL, and Valorant. 

Some, like Valorant, have an off-season lasting up to a third of the year, creating notable gaps in the betting calendar.

Operators often turn to smaller third-tier tournaments or streamer matches to maintain user engagement during these periods. This approach has been effectively demonstrated by DATA.BET, showcasing the potential of streamer matches as a powerful tool for sustained engagement. 

While these events provide some activity, they lack the scale and appeal to compensate for the absence of significant tournaments fully. Addressing this requires a long-term approach focused on expanding esports as an industry. 

By fostering the growth of new disciplines and increasing the number of tournaments, operators can gradually build a more consistent calendar, reducing the impact of seasonality and creating more profit opportunities.

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