Online gambling operators set sights on eSports

Online gambling operators have enjoyed several years of growth thanks to a steady stream of video slots and the introduction of live table games that give players a taste of real casino action from the comfort of their own homes. Sports betting has also become very popular in recent years. Now operators have their sights set on a new stream of revenue: eSports.

It makes sense that online gambling operators would want a piece of the eSports pie. After all, you can bet on the outcome of any eSports game just as easily as a live sporting event or a spin of the reels in a video slot. Betting is betting from a technical standpoint. eSports simply gives operators something new to take bets on.

More about eSports

Known more formally as electronic sports, eSports is an arena of competition based on video games. The eSports designation is somewhat of a misnomer in the sense that not all of the video games that make up the full scope of the genre are sports simulations. Some are, but most are not.

The most common games in eSports are multiplayer online battle arena (MOBA) and first-person shooter (FPS) games. After that you have fighting games, real-time strategy (RTS) games, and sports simulations covering everything from football to basketball.

eSports has matured over the years to the point at which it now supports full-time, professional play. There are people who literally make their livings the same way that professional poker players do: they enter themselves and/or their teams in tournaments and win prize money according to how well they perform. Tournaments are backed by companies that trade funding for endorsements.

From a betting perspective, eSports gives operators plenty to work with. Operators can follow tournament play as it travels around the world, giving gamblers opportunities to place bets on who wins and who loses. Within each tournament gamblers can place wagers on individual performances, game scores, and so forth.

The best thing about betting on eSports is variety. It is a lot like betting on live sports in the sense that there are dozens of different games to follow at any given time. The variety of opportunities is really rather extensive. Moreover, both live and static betting are possible. It just takes an entrepreneurial online gambling operator to find a way to bring all the options together in one place.

eSports betting and Blockchain

Another key point to take away is the opportunity for eSports to become an early adopter of Blockchain for online gambling applications.

The interesting thing about Bitcoin SV is that, even though it is a fork of a Bitcoin fork, its underlying code has been modified in such a way as to allow it to be used for more than just financial transactions.

As you probably know, the original Bitcoin is limited in that respect. So is Bitcoin Cash. Neither can be used for anything other than financial transactions and still remain true to their origins. Indeed, that's why Ethereum was created. The minds behind the Ethereum project wanted a Blockchain package with capabilities and applications that went beyond monetary systems.

Bitcoin SV was created with that in mind as well. So, while it certainly is more than capable of powering the BSV cryptocurrency, Bitcoin SV can also be deployed to power eSports betting.

Why Blockchain is so attractive

It is fairly normal to think of Blockchain only in the sense of cryptocurrency. As such, there are people who look at the volatility of most cryptocurrencies and assume that volatility is inherent to Blockchain. Perhaps that is one of the reasons Blockchain proponents are having a hard time selling the technology outside of the financial services arena.

Be that as it may, there are a couple of very good reasons Blockchain is so attractive to online gambling operators. First is the fact that financial transactions are immutable. Apply Blockchain to payments and you have a financial system that is exponentially fairer to operators than the traditional banking system.

Immutability means no more charge backs for operators. It also means an ironclad accounting system capable of proving financial integrity. Finally, Blockchain gives operators more opportunities to accept cryptocurrency payments. And like it or not, cryptocurrency will play an ever-increasing role in online gambling revenues in the years to come.

Blockchain is attractive to online gambling operators for a second reason: it is the perfect technology for proving fairness and integrity of game-play. This is now a big issue with so many new operators entering the industry. Operators looking to stand out from the crowd and keep regulators off their backs are compelled to offer provably fair games that are above scrutiny.

Blockchain is the technology that can make it happen. Again, it all boils down to immutability. Once data is entered into a block and that block is finalised and added to the chain, it cannot be modified or removed. Thus, a Blockchain ledger attached to a particular game would provide a running and immutable record of every transaction within that game.

Let's say you're talking about a video slot. The game's Blockchain ledger would record every single wager placed. It would record every spin of the reels and the results of those spins. It would record Return to Player (RTP) ratios. Virtually all the information an operator would need to prove the game is fair would be included in the ledger.

Blockchain for eSports

Powering video slots and table games with Blockchain is just the starting point. The same principles can also be applied to betting on eSports. The main difference is that immutability and provably fair games are even more important for live events like eSports.

Something like a video slot or computerised table game relies on random chance to determine outcomes. eSports and its live sports counterpart rely less on chance and more on the skills and strategies of the players themselves. Gamblers place their bets, in part, on what they know about players.

Why does this matter? Because eSports could easily be corrupted by match fixing. We already know that match fixing occurs in traditional live sports betting. Blockchain addresses that problem to some degree by making everything transparent. A Blockchain ledger for an eSports platform would track the money that flows through the system, thereby making it possible to see just who is making money off tournament wins and losses.

Someone who knows how to interpret the data could tell if match fixing were taking place. Even if those responsible for it maintained anonymity by using cryptocurrency to fund their wagers, it would still be possible to get to the players themselves. Once you do that, the scheme is exposed and it goes away.

An industry ready for action

By all accounts it seems as though the eSports industry is one ready for action. With annual eSports revenues near $1 billion and investors backing the industry with billions more every year, eSports looks like it is here to stay. It also appears to be a growth industry that online gambling operators would find attractive.

It would seem that the race is on to figure out how to monetise eSports from a gambler's perspective. In the coming months, expect to see growing numbers of operators take a serious look at eSports betting. Look for new partnerships between gambling operators and eSports operators as they seek to find some sort of common ground.

Once this all takes off - and plenty of people think it will - it will be no surprise to find Blockchain at the core. Blockchain technology can power both the games and betting platforms simultaneously, creating an immutable record that proves fairness and integrity.

eSports could very well prove to be the next big thing in online gambling. What remains to be seen is whether or not gambling operators can find the right audience. After all, eSports is really a thing for the younger generations. Is that audience large enough to make eSports gambling worthwhile?

Maybe, but maybe not. Operators may find they have to target the older demographic as well. That would mean teaching older gamblers the fundamentals of eSports and why they are worth betting on. It could be an uphill battle if it leads to that. For now, though, it is enough to know that gambling operators at least have their eye on eSports. Now let's see what they do with it.