Esports Betting Market: Global
The global esports betting market is constantly expanding. The three key players in the global betting market include William Hill, 888 Holdings
and Kindred Group.
OVERVIEW OF THE INDUSTRY
- Esports betting market one of the fastest growing sectors and the growth of the market is attributed to the growing popularity of online competitive gaming and professional gaming.
- The total amount bet on esports competitions is expected to jump from USD 5.5 billion in 2016 to USD 12.9 billion in 2020, marking a significant increase of 134% in just four years.
- It is an industry where players compete playing computer games on a
- Increased exposure, the number of people aware of eSports, a growing sector within the industry, is expected to reach 1.6 billion in 2018, while the enthusiast community will comprise 165 million of the total and grow to 250 million by 2021.
KEY DRIVES OF THE MARKET
1) Improved technology
- Improved technology new standards for functionality and reliability that are introduced by startups such as the Unikoin and Bettium transform how online betting is perceived, opening the market up for more and more players, advertisers and investors.
2) The effect of Regulation
3) Introduction of New leagues and participants
- New video game entrants such as PlayerUnknown’s Battlegrounds, Amazon’s Breakaway, and the Overwatch League, together with real-world sports companies, starting to partner with tech giants like EA Sports, will further drive growth and increase interest in the eSports betting market, making it more technologically advanced and bigger than ever before.
1) WlLLIAM HILL
- The company was founded in 1934 and it has grown to be among the most trusted brands that is attracting a million of customers worldwide. The company is based in started out in UK business and it happens to still be the companies home market, as it accounts almost 86% of the business last year.
- William Hill started it business in US, Nevada and grew to be a leading sports betting operator in the US in 2012, when we merged three businesses based in Nevada to form William Hill US. The company estimates by the end of 2018 the company had grown to reach a market share of 32% in terms of revenues and 57% by number of outlets. The company now owns sports books in about 115 of the total of 190 casinos across Nevada, in addition to offering mobile betting via an app.
- The company has been licensed to deliver online betting and gaming in Italy and Spain since 2011 and 2012 respectively, and is currently operating in the US since 2012. William Hill brand is an 85-year-old favorite which has stood the test of time and still stands for the values espoused by William Hill himself who happens to be the company founder which include trust, integrity and customer service.
- William Hill has about 15,500 employees across the world that is in UK, Gibraltar, Malta, Bulgaria, Italy, Spain, the US, Poland, Sweden, Denmark, Latvia and the Philippines. The company dominates in UK at 86% then US at 5%, Italy and Spain at 4% and other countries 5%.
- It estimated that in 2018 the company's online business generated 39% of the group revenue and also employed about 1,800 people in Gibraltar, the UK, Malta, Bulgaria, Italy, Spain, Poland and the Philippines. The company recently acquired Mr Green and this has expanded the company's market in Europe. Total online gambling revenues in the UK in 2018 stood at £5.3billion, representing the largest regulated market for online gambling in the world, which continues to grow.
- The Company's retail market is the largest William Hill division, generating 56% of Group net revenue in 2018 and employing around 12,500 people in the UK.
- William Hill is the UK’s number one provider of licensed betting offices (LBOs), with c2,300 of the c8,500 shops licensed by the Gambling Commission, although this is expected to reduce following the implementation of the £2 stake limit on gaming machines.
2) 888 HOLDINGS
- The company happens to be public Limited Company and is one of the world’s most popular online gaming entertainment and solutions providers. The company has been in the online gaming industry since 1997.
- 888’s headquarters and main operations are in Gibraltar and the company has licenses in Gibraltar, the UK, Spain, Italy, Denmark, Ireland, Romania, Nevada, New Jersey and Delaware.
- The Group is structured into two lines of business: B2C, under the 888 brands, and B2B, conducted through Dragonfish, which provides partners the ideal platform through which to establish an online gaming presence and monetize their own brands.
- This strategy enables the company to leverage its core technological, product, marketing and analytical strengths and maximize their benefits across both B2C and B2B routes to market.
- The strategy enables it to compete successfully and surpass competition in both established and newer markets.
The company was founded in 1997 in the British Virgin Islands as Virtual Holdings Limited. In 2019 Itai was appointed as CEO, to continue to deliver 888’s growth strategy.
- Some company values include excellence, innovation, caring, collaboration and professional collaborating.
3) KINDRED GRUOP
- The company has been in the industry for the last 20 years and has brought together 11 of Europe’s most successful online gambling brands forming one of the largest online gambling companies in the world.
- The company had about 1,478,437
active customers per the latest quarter. The company started in Unibet in 1997 and is today the global gambling group Kindred. The company founder Anders Ström set out to change the way players gamble and offer them an experience suited to the modern digital world.
- Kindred Group's values include unit, trust, innovation and friendship.
- The company's brands include 32red, Bingo.com, Bohemia Casino, Casinohuone, Unibet among others.
In order to provide an overview of the global esports market and also locate some of its key players in the industry, we leveraged through industrial reports such as MarketWatch and news articles like 24 newswire. The reports provided us with information regarding the industry drivers and some key leaders in the industry. We also searched through most influential news sources such as Coinspeaker to look for information related to betting which gave us insights regarding market drivers for the industry. We further consulted specific company
websites to find information regarding the identified three key players in the industry. From these resources, the main key players in the global esport market include William Hill, 888 Holdings
and Kindred Group and the key drivers in the industry are improved technology, regulation, and introduction of new leagues and participants.