Esports Betting On Pace To Reach Up To $8 Billion In Total Wagers This Year
PALM BEACH, Fla., Sept. 20, 2021 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - The Global Sports eSports Betting Market is exhibiting rapid growth in the last few years and for the years to come. In fact, betting is the single biggest opportunity in esports. It has uncapped upside and is one of the least encumbered by the video game publisher…but it's also one of the least talked about. The recent investment wave in esports has been primarily focused on the most visible assets in the space being esports organizations, influencer agencies, and content/competition assets. According to an article by Venture Beat, one of the fastest growing categories in online gambling, esports betting is on pace to reach up to $8 billion USD in total wagers this year, equating to $560 million in revenue at an industry average margin of 7%. Growth estimates point to more than $16 billion in annual wagers in coming years. This compares to an estimated $1 billion in revenue to be earned in 2019 for the rest of esports, however, when adjusting for publisher owned/operated assets revenue, I believe the number is closer to half that. This adjustment nets out game publisher fees, merch and ticketing at major publisher run events, a proportion of media rights, and a percentage of sponsorship and advertising. It continued: "Now in 2019 esports betting is one of the most exciting categories in the regulated gambling industry. Even more so when combined with a U.S. sports betting market opening up state by state. With the nature of esports being video games, it creates unlimited possibilities for unique bets such as round-by-round betting in first person shooters, or hyper-contextual bets like first Baron kill (provides a team buff) in the world's most popular esport game, League of Legends. With new game titles constantly being released, and an ever-increasing population of esports fans, the trend is clear." Active gaming and tech companies in the markets today include: Esports Technologies (NASDAQ: EBET), DouYu International Holdings Limited (NASDAQ: DOYU), DraftKings Inc. (NASDAQ: DKNG), International Game Technology PLC (NYSE: IGT), Skillz Inc. (NYSE: SKLZ).
Venture Beat concluded: "Online gambling has spent more than 20 years focused on traditional sports. Creating and curating the optimal offering, marketing schemes, and bonus/reward programs. Converting brick and mortar bettors to online ones. Over that period gambling regulation has evolved, sports fans have aged, and the market has become relatively saturated with operators. The emergence of esports as a sport, and consequently, a betting market, represents the first instance in a long time of a new generation entering the fold. This is unprecedented and the interest from the traditional gambling world is immense. For the first time they are facing a generation born and bred on the internet. Solving for that when you have spent so long solving for the inverse is challenging. It means a window of opportunity is open for new operators, new investors, new strategies, new ideas, and it's incredibly exciting. All that said, it's a thrilling time to be in esports, betting, and the development of sports and media for the next generation. This is just the beginning."
Esports Technologies (NASDAQ: EBET) – BREAKING NEWS - Esports Technologies Odds Modeling and Wagering Technology to Integrate with Aspire Global's Platform - Esports Technologies Signs Strategic Deal with Aspire Global - Esports Technologies, a leading global provider of advanced esports wagering products and technology, announced today a strategic license agreement with Aspire Global (STO: ASPIRE) to integrate Esports Technologies proprietary odds modeling, market creation and trading feed into Aspire's esports platform. Through this agreement, Esports Technologies will have access to Aspire's range of offerings and managed services.
Aspire Global is a leading B2B-provider of iGaming solutions, comprising a robust technical platform, proprietary casino games, a proprietary sportsbook, and a game aggregator. Aspire also operates several B2C brands, including Karamba, the premier showcase of its B2B offering.
Tsachi Maimon , Aspire Global's CEO, said, "We are happy to welcome Esports Technologies as an esports partner. We look forward to providing the esports proprietary solutions for iGaming operators. We are also thrilled to integrate Esports Technologies groundbreaking and engaging wagering products on our platform."
Bart Barden , COO, Esports Technologies, said, "We are at an exciting rapid growth phase, expanding our business across multiple markets and service offerings. When executing on our plan to expand our presence in key markets, Esports Technologies searched for a solution that would allow us to further differentiate ourselves in our goal of becoming a leader in esports wagering and technology. In Aspire Global, we have found a long-term partner that meets our high demands." CONTINUED… READ THIS AND MORE NEWS FOR EBET BY VISITING: https://esportstechnologies.com/news/
In other entertainment and gaming recent news of interest.
DouYu International Holdings Limited (NASDAQ: DOYU), a leading game-centric live streaming platform in China and a pioneer in the eSports value chain, recently announced its unaudited financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Financial and Operational Highlights Were: Total net revenues in the second quarter of 2021 were RMB2,336.8 million(US$361.9 million), compared with RMB2,508.2 million in the same period of 2020; Gross profit in the second quarter of 2021 was RMB306.5 million (US$47.5 million), compared with RMB522.9 million in the same period of 2020; Net loss in the second quarter of 2021 was RMB181.7 million (US$28.1 million), compared with a net income of RMB319.3 million in the same period of 2020; Adjusted net loss in the second quarter of 2021 was RMB145.1 million (US$22.5 million), compared with an adjusted net income of RMB322.9 million in the same period of 2020; Average mobile MAUs in the second quarter of 2021 increased by 3.9% to 60.7 million from 58.4 million in the same period of 2020; and Quarterly average paying user count in the second quarter of 2021 was 7.2 million, compared with 7.6 million in the same period of 2020.
DraftKings Inc. (NASDAQ: DKNG) recently announced the launch of DraftKings' online Sportsbook in Arizona, marking the 14th state in which the top-rated mobile sportsbook is available. Arizona sports fans age 21 and over are now able to place wagers on a variety of betting markets across professional, collegiate and other sports leagues via the DraftKings Sportsbook app. The announcement comes following a successful launch of DraftKings' daily fantasy product which experienced more than 90,000 contest entries in the first 12 days.
"With the launch of our digital sportsbook coinciding with NFL kickoff, the busiest and most exciting time of the year for our company, we could not have imagined a better time to introduce Arizona's sports fans to the DraftKings experience," said Matt Kalish, co-founder and president of DraftKings North America. "We would also like to thank the PGA TOUR, TPC Scottsdale, as well as Governor Doug Ducey and his team, Representative Jeff Weninger, Senator T.J. Shope, the Arizona state legislature, and the Arizona Department of Gaming for working together to further fan engagement across sports. We look forward to becoming the sportsbook of choice for Arizonans across the state."
International Game Technology PLC (NYSE: IGT) recently announced that the Company is extending its momentum in cashless gaming technology deployments to Oklahoma, the U.S. state with the second-highest concentration of gaming machines per capita. Indigo Sky Casino in Wyandotte, Okla. is the latest casino to join the cashless gaming revolution by way of a multi-year agreement with IGT and a phased rollout of the Resort Wallet and IGTPay modules of the IGT ADVANTAGE® casino management system.
By combining Resort Wallet technology with the IGTPay solution, Indigo Sky Casinowill offer its patrons convenient, one-step access to funds from external sources such as credit and debit cards, bank accounts, and eWallets.
Skillz Inc. (NYSE: SKLZ) the leading mobile games platform bringing fair competition to players worldwide, recently announced financial results for the second quarter ended June 30, 2021. "Skillz is pleased to report strong revenue growth for the 22nd consecutive quarter and the closing of our acquisition of marketing platform Aarki, which will increase the efficiency of our user acquisition spend," said Andrew Paradise, CEO and founder of Skillz. "Together with our partners, we continue to accelerate our vision of connecting the world through the power of competition."
Q2 Financial Highlights Were: Revenue grew to $89.5 million during the second quarter of 2021, up 52% over the prior year; Gross profit grew to $85.1 million during the second quarter of 2021, up 52% over the prior year; Gross margin was 95% during the second quarter of 2021, in line with prior year; Net loss increased to $79.6 million during the second quarter of 2021, compared with $20.2 million in the prior year; Adjusted EBITDA was $(31.6) million during the second quarter of 2021, $28.3 million lower than the prior year; Gross Marketplace Volume1 (GMV) grew to $608.5 million during the second quarter of 2021, up 47% over the prior year; and Cash on balance sheet of $692.8 million and no debt at the end of second quarter 2021.
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