Matt Stephenson, the Business Development Director at Betgenius, provided his perspective on the rapidly expanding esports wagering sector.
“In the beginning, when I joined Betgenius, it was a small enterprise with a mere 10 to 12 individuals squeezed into a compact office near London Bridge,” Stephenson reminisced. “Presently, we possess a worldwide footprint with a London-based central office housing over 150 personnel. Our operations have also diversified from basic odds comparisons to a wider range of offerings, encompassing advertising, marketing, and trading software for lottery organizations and gaming enterprises, and more recently, integrity solutions for sports governing bodies. The company has undergone substantial transformations and advancements throughout its journey, yet it has consistently upheld the fundamental principles that initially drew me to it.”
Regarding his current position, Stephenson explained, “My primary responsibility lies in overseeing the commercial aspects of our sportsbook administration product. We furnish software and managed solutions to bookmakers, enabling them to streamline their trading procedures. Previously, I supervised the sales department, but my attention is now directed towards catering to major clients and cultivating fresh business opportunities.”
Analyzing the prevailing patterns within the sports wagering industry, he observed, “A notable tendency in the sports betting realm over the past ten years has been the transition from pre-game wagers to live, in-play betting.”
The realm of wagering is undergoing a swift transformation, with the surge in in-play betting serving as a prime example. A mere ten years ago, oddsmakers provided live lines on perhaps 500 matches monthly. Today, that figure has soared to over 6,000, fueled primarily by the worldwide craving for live football (soccer) wagers. Tennis has experienced a comparable boom in in-play betting, and now basketball is poised for its own upheaval. This year alone, projections indicate the offering of live odds on exceeding 30,000 basketball contests.
For technology-driven enterprises like Betgenius, maintaining a leading edge is crucial. It’s not simply about fulfilling current client desires but rather anticipating their requirements six months or a year into the future. This forward-thinking approach explains the intense focus on esports over the past year. A substantial opportunity exists to integrate into the value chain and assist esports in achieving its full commercial capabilities, particularly within the domain of live betting.
What factors, then, make esports so alluring to the betting sector?
The preceding year has been an accelerated learning experience in esports, grappling with the intricacies of gameplay, the expectations of players, and the potential synergies with sports wagering. Conversations with CEOs and trading executives at some of the globe’s largest corporations reveal a keen interest in the potential of live esports betting. Presenting them with the prospect of 6,000 live events annually, many aligning with prime time for European viewership, ignites their imaginations and highlights the possibilities.
A further rationale for wagering firms’ interest in competitive gaming is the distinct and untapped demographic it attracts, which is precisely why we’ve gained an early foothold and market share.
The typical esports aficionado is often a young man who is technologically adept and possesses disposable funds. Beyond engaging with peers and online competitors within the games, they follow live streams of tournaments, consume related media, purchase merchandise, and participate in teams and brand communities. Similar to traditional sports, this fosters a devoted following. Provide them with an enticing wagering opportunity, and they’re likely to embrace it for the entertainment factor.
The greatest potential for esports betting lies in regions where esports enjoys significant popularity, but legal wagering choices are restricted, such as the United States, China, and Korea. However, throughout Europe, particularly Eastern Europe, as well as in Australia and South America, a rapidly expanding and dedicated fanbase is establishing fresh wagering milestones each month.
Wagering enterprises must prioritize their esports offerings to thrive. This necessitates a comprehensive product encompassing pre-match and in-play betting options, achievable through outsourcing to companies like Betgenius or by recruiting seasoned esports traders.
For telecom providers to genuinely thrive in the competitive esports wagering sector, simply including a website link and anticipating success is insufficient. They must cater to the distinct requirements of esports enthusiasts. This entails focused promotions on prominent esports platforms and communities, and developing a space that connects with gamers visually and content-wise.
Consider Betway and Pinnacle as prime illustrations. They have excelled in establishing specialized esports centers that resemble well-known esports news outlets rather than conventional betting sites.
Incorporating live streaming presents another significant prospect, albeit more intricate than with established sports. The esports streaming realm is already mature yet fragmented. Licensing complications among developers, tournament organizers, and platforms like Twitch create a potential hazard zone.
A major hurdle involves attracting conventional betting patrons to esports. Comprehending the intricacies can be intimidating for those unfamiliar with competitive gaming, particularly for intricate games like League of Legends. Wagering companies must allocate resources to educational tools to close this knowledge divide and effectively convert these customers.
Other games, such as Counter-Strike: Global Offensive, are more accessible. Two squads, an arsenal of weaponry, and the objective is to eliminate the opposition – quite simple!
In the previous year, you collaborated with Sky Betting & Gaming – are there any other providers you are aiming to secure agreements with?
Our alliance with Sky Bet is progressing very favorably, and in addition to that, we’ve inked arrangements with Betfair, Codere in Spain, and Danske Spil in Denmark, with approximately half a dozen integrations in progress. However, it’s still early stages, and it’s an emerging sector that’s somewhat unpredictable and not as straightforward as simply activating it. We must collaborate closely with our customers to ensure a positive front-end experience and a seamless integration. For the operators, it’s about achieving market leadership.
Roughly 90% of the income generated thus far has originated from esports wagering.
What strategies do you have for expanding the esports market in the future?
We hold a strong position due to our distinctive offering. Our current objective is to broaden our tournament coverage even further. We’re incorporating additional esports titles, expanding the scope of our coverage, and introducing novel market categories. We’re currently on a roadshow, engaging with key players in the betting and lottery industry and showcasing our achievements.
