The eSports Betting Industry Is Growing Exponentially Becoming the Market's Hottest Trend
Financialnewsmedia.com News Commentary
20 May, 2021, 09:15 ET
PALM BEACH, Fla., May 20, 2021 /PRNewswire/ -- Interest in eSports keeps on growing on a global scale. Shortly after the appearance of video games in which players pit their wits against each other, the idea of betting on who will emerge victorious started to loom. Currently, eSports betting is one of the hottest trends among people who love video games and gambling at the same time. It is not only the fan base that increases… in 2019 news agencies reported that the eSports betting industry was worth more than $1 billion. Industry insiders, at that time, believed that the eSports revenues might exceed $2 billion within three years. Actually, they were way off base. A report from Market Insight Reports said that the global eSports Betting market size is expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of 13.1%% in the forecast period of 2020 to 2025 and will expected to reach USD 13.05 billion by 2025, from USD 7983.2 million in 2019. According to SportingPedia, the eSports betting industry keeps on growing exponentially. Currently, competitive video gaming is among the most preferred pastimes all over the world. The fan base also keeps on increasing. In 2018, a survey revealed that the frequent eSports viewers are over 170 million and the occasional viewers are 222 million. In 2020, it was reported that these figures significantly increased. Up until now, the frequent viewers are approximately 220 million and the occasional viewers are over 270 million. The report said: "Even though the sports betting industry witnessed a significant slowdown due to the Covid-19 pandemic that led to the cancelation of many sports events, the eSports market continued its rapid global growth. According to a recent report released by the UK Gambling Commission, the eSports industry marked an incredible year-on-year growth of 2992%. Active gaming companies in the markets today include: Esports Technologies (NASDAQ: EBET), DraftKings Inc. (NASDAQ: DKNG), Enthusiast Gaming Holdings Inc. (NASDAQ:EGLX) (TSX:EGLX), Corsair Gaming, Inc. (NASDAQ: CRSR), Elys Game Technology (NASDAQ: ELYS).
The SportingPedia article continued: "Industry insiders believe that the future will open new horizons for the eSports industry development. New games with better quality will appear on the scene to cater to the constantly growing demand for new more engaging games. Some experts even consider that artificial intelligence will also find its place in eSports. In addition to that, more jurisdictions will regulate the eSports betting market. Recognizing the big potential of the eSports industry, a growing number of casinos started to accept wagers for eSports competitions. In 2018, Luxor Casino made the headlines after it was announced that the casino is ready to open the first purpose-built eSports arena on the Las Vegas Strip. We expect that this trend will continue and other land-based casinos will build such an arena."
Esports Technologies (NASDAQ: EBET) BREAKING NEWS - Esports Technologies Announces Exclusive Patent License Agreement, New Alliance with Colossus Bets - Intellectual Property Agreement to Improve Cash-Out User Experience Across Esports Technologies' Products – Esports Technologies, a global provider of advanced esports wagering products and technology, today announced an exclusive partnership with Colossus Bets, a global sports jackpot operator and provider.
The agreement grants Esports Technologies an exclusive license for the majority of Colossus' extensive cash-out patent portfolio for esports applications, enabling Esports Technologies to improve its cash-out user experience across all of its products thanks to Colossus' leg-by-leg cash-out options.
SEE A COMPLETE LIST OF PATENTS VISITING: https://esportstechnologies.com/news/
Bart Barden, Esports Technologies Chief Operating Officer, said, "We believe our alliance with Colossus will herald the arrival of industry-leading cash-out technology, both in free-to-play and real money formats in one platform, helping us grow to become a broader 'best in class' esports offering. The exclusive patent license bolsters our offerings with strong IP protection and customization, resulting in a potent package that spans across data, technology and product, particularly in the context of our North American Business-to-Business ambitions. We look forward to our continuing partnership with Colossus to provide our customers with the best possible experiences on our platforms."
Eva Karagianni-Goel, Colossus Chief Operating Officer, said, "We are excited to join forces with Esports Technologies to unlock the value of our patents for esports audiences. Their IP-led approach mirrors ours and presents us with an exciting opportunity to marry our know-how with what is probably the most forward-looking content area, esports. By marrying our two technologies we believe we are able to create truly best-in-class experiences for bettors, and we look forward to our continued partnership."
The announcement comes on the heels of Esports Technologies' NASDAQ listing, and is in line with the company's stated strategy to "provide the most advanced product, platform and marketing solutions" for esports wagering, continuing to build on the Gogawi platform in the Asian-Pacific region." CONTINUED… READ THIS AND MORE NEWS FOR EBET BY VISITING: https://esportstechnologies.com/news/
In other gaming recent news of interest:
DraftKings Inc. (NASDAQ: DKNG) recently reported first quarter 2021 financial results. First Quarter 2021 Highlights were as follows: For the three months ended March 31, 2021, DraftKings reported revenue of $312 million, an increase of 253% compared to $89 million during the same period in 2020. After giving pro forma effect to the business combination with SBTech (Global) Limited ("SBTech") and Diamond Eagle Acquisition Corp. which was completed on April 23, 2020, as if it had occurred on January 1, 2019, revenue grew 175% compared to the three months ended March 31, 2020.
"DraftKings is off to an outstanding start in 2021," said Jason Robins, DraftKings' co-founder, CEO and Chairman of the Board. "We continued to make progress and remain on track with the migration to our own in-house proprietary sports betting engine, strengthened our content and technology capabilities with the acquisitions of VSiN and BlueRibbon Software, and invested in further differentiating our product offering with the upcoming rollout of social functionality in our DFS and mobile Sportsbook apps."
Enthusiast Gaming Holdings Inc. (NASDAQ:EGLX) (TSX:EGLX) recently announced it has teamed up with Grammy-award winning international music superstars Coldplay to bring fans a fresh and unique musical experience to celebrate the band's new single 'Higher Power'.
The tie-up will provide unique musical and gaming content to the fan communities across the entire Enthusiast Gaming platform, with the band also being made honorary members of Team Luminosity. The hour-long launch event to promote Coldplay's new hit single 'Higher Power' will take place on Thursday, May 20, 2021 at 7:00pm EDT and will be livestreamed on Luminosity Gaming's Twitch channel. The event will include an appearance by Coldplay as well as a performance by Luminosity Gaming artist and Grammy award nominee ZHU who will play his official remix of the song. The event will also include a performance by Twitch sensation and Luminosity Gaming team member DJ Harley Fresh (aka Fresh).
Corsair Gaming, Inc. (NASDAQ: CRSR) recently announced financial results for the first quarter ended March 31, 2021. First Quarter 2021 Highlights were: Net revenue was $529.4 million, an increase of 71.6% year-over-year. Gamer and creator peripherals segment net revenue was $175.9 million, an increase of 131.9% year-over-year. Gaming components and systems segment net revenue was $353.5 million, an increase of 51.9% year-over-year; Gross profit was $160.3 million, an increase of 103.9% year-over-year, with gross margin of 30.3%, an improvement of 480 basis points year-over-year. Gamer and creator peripherals segment gross profit was $68.9 million, an increase of 211.1% year-over-year.
Gaming components and systems segment gross profit was $91.5 million, an increase of 61.9% year-over-year; Operating income was $67.3 million, an increase of 404.5% year-over-year; Adjusted operating income was $80.4 million, an increase of 221.4% year-over-year; Net income was $46.7 million, or $0.47 per diluted share, compared to net income of $1.2 million in the same period last year, or $0.01 per diluted share; Adjusted net income was $58.2 million, or $0.58 per diluted share, an increase of 420.4% year-over-year compared to adjusted net income of $11.2 million in the same period last year, or $0.13 per diluted share; Adjusted EBITDA was $80.4 million, an increase of 196.6% year-over-year, with adjusted EBITDA margin of 15.2%, an improvement of 640 basis points year-over-year; As of March 31, 2021, we had cash and restricted cash of $125.6 million, $48.1 million capacity under our revolving credit facility and total long-term debt of $294.3 million; Cash flows from operations was $27.8 million, which increased from $2.0 million in the same period last year.
Elys Game Technology (NASDAQ: ELYS) recently announced 2020 results. Turnover, or betting handle, has grown from about $122 million in 2016 to $574 million in 2020, which represents a CAGR of 47% as the company's expansion accelerates. Despite the impact of COVID-19, 2020 turnover of $574 million was up 26.5% compared to $454 million in 2019, as ELYS has both expanded its bricks-and-mortar footprint and intends to integrate with a growing number of online operators.
Benefits of Omni-Channel Strategy - The 2020 turnover metric represents an important milestone for ELYS, as it meets its $500+ million target despite the challenges of the global pandemic. The company's ability to reach this level also validates its omni-channel strategy that combines both online and land-based retail betting. Players have shifted from bricks-and-mortar to online during the pandemic, with the advance in web-based gross gaming revenue. ELYS's turnover is expected to continue to rise as the company pursues expansion initiatives. Management believes the Elys platform is highly scalable and can continue to support its growth initiatives and expansion, reflecting the company's entrance into new markets combined with potential M&A transactions and the anticipated growth of the e-sports sector.
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