As the last quarter of 2015 comes into focus, it’s worth reflecting on some of the key themes from the last month. Last week’s flurry of eSports-related activity aside (FanDuel & DraftKings making a big splash, TBS eSports announcement), the last 30 days have featured a flurry of impactful developments. Including,
eSports gambling and wagering comes into focus. Eilers research published a report claiming eSports betting could be worth $1.81b by 2020. While the attempt to quantify the current and future size of betting in a fledgling market like eSports is far from an exact science, it brings the potential scale of wagering on eSports events into perspective. Eilers estimates 595k paid active real-money fantasy eSports bettors, but 3.2m players betting informally using in-game items.
The latter figure is particularly interesting as the Electronic Sports Entertainment Association (ESEA) has decided to crack down on the proliferation of gambling-related sponsorships for Counter Strike: Global Offensive (CS:GO) teams. Valve, the publisher of CS:GO, has made it clear that, “no professional teams should have any association with betting as it pertains to CS:GO weapon skins.” Yet traditional, moneyed betting companies are not included in the ban; which brings questions of whose interests are being upheld as part of the ban.
Arena infrastructure emerges in North America. As the tournament circuit for professional video gaming expands, new business opportunities to monetize around its ecosystem begin to materialize. In turn, the new eSports Arena in Santa Ana, CA has been erected as a 15,000-square-foot, first-of-its-kind recreation center in the U.S.A designed for eSports. The effort will provide a use case for the viability of venues dedicated specifically to competitive gaming; a concept that, until the recent expansion of stable tournaments and leagues, seemed unsustainable.
Further north, operator of Canada’s largest chain of movie theatres is investing $15 million US in eSports competitions playing out on Cineplex stages across the country. Cineplex Entertainment Inc. acquired the assets of WorldGaming, and its platform used for tournaments and leagues in the eSports community, for $10 million US. An additional $5 million US will go towards creating a new competitive gaming league that will fill Cineplex theatres with tournaments across the country, beginning in October.
The question of gender still lurks. The meteoric rise of eSports has not quelled levels of internal toxicity towards the female members of its own community. The first-ever TwitchCon featured various leading voices speaking to what can be done to increase competitive participation by women in eSports. While solutions have been hard to come by, it’s generally agreed there is a disproportionate degree of online harassment directed at female gamers and streamers. The abuse subjected upon female members of the community is not only relevant from a moral perspective, but also from a business one.
Rampant sexism may begin to have a negative affect on big-name sponsors investing in the eSports marketplace. Meaning leading eSport brands and companies have a vested interest in addressing this issue, sooner rather than later. Better balanced demographics will increase the revenue generating opportunities for the entire industry. Unlike traditional sports, which are segmented along gender lines, eSports does not have the luxury of neglecting the female persuasion.
Professionalism vs. Maturity. Developer of the world’s leading eSport, League of Legends, rolled out apparel restriction for players and coaching staff in the LCS World Championship in October. The move parallels one made by the National Basketball Association (NBA) to curtail inappropriate dress by players, ten years ago. However, unlike the NBA’s attire policy, Riot’s covers actual player jerseys. Yet, Riot does not issue official competition wear for participating teams. Meaning institution of strict language around “matching apparel including shirts/jerseys, jackets, and pants,” (section 4.4 of the 2015 World Championship rules) is somewhat confusing.
Clearly, more uniformly attired teams will improve the visual profile of professional gaming, but that is better as an outgrowth of systemic maturity and not just top-down policy. In other words, players and coaches will look more professional, while more prominent issues related to maturity, e.g. player rights and ownership governance, remain unaddressed. Sponsors and investors watching the eSports space will focus on the latter over the appearance of the former. Riot, as one of the world’s leader in eSports, must prioritize accordingly.
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Alex Fletcher is founder & president at eSports Group, where he helps customers meet their eSports advisory & consulting needs. When Alex isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish. Feel free to stalk him on Twitter – @FletchUnleashed