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When interest in esport spiked in 2020, there were some who thought this would be short-term hype due to the extraordinary circumstances of the time. After all, with the possible exception of a few football matches in the Tajikistan league, all other sport was on hold. What else was there for fans to watch and, more to the point, to give sports betting enthusiasts an outlet for their wagers?
That might have been the trigger, but two years on, we have our answer. Esports’ popularity has continued to grow, and CS:GO, in particular, remains a favourite for sports betting, featuring on more mainstream betting sites than ever before. It is also proving to be something of a lifeline for a crypto market that has otherwise had a year to forget.
The rise of crypto sports betting
From a casino gaming perspective, crypto has transitioned from an obscure niche in its own little corner of cyberspace to one of the most popular transaction methods. There’s good reason for that – it is fast and seamless, and bettors need part with minimal personal information. All these reasons hold true for sports betting, too, but crypto bookies are not as commonplace as crypto casinos.
To find the main reason for this, we must look beyond the seas. In many jurisdictions, online casinos are prohibited from operating. That doesn’t prevent people from still using them, and those wanting to bet online simply use sites that are based offshore and licensed elsewhere. In some jurisdictions, regulators are able to block bank transfers and card payments from domestic banks to betting sites. While every jurisdiction is different, there is usually little that regulators can do to directly prevent people from playing at offshore gambling sites. They can, however, make it awkward to get funds to and from these sites. Under these circumstances, crypto presents a solution.
Sports betting does not have quite the same drivers as crypto casino gaming, as more nations permit online sports books. Nevertheless, sportsbetting with crypto currency is apparently on an upward trajectory, and it is esports that is leading the quiet sports betting revolution. The average esports fan is said to be aged 27, affluent and technologically savvy. It doesn’t take a genius in demographics to know that this is a little different to the typical customer profile at a traditional high street bookmakers.
Technological synergies
We have already touched on the pragmatic benefits of using crypto for online betting. But there are additional linkages and synergies between the worlds of crypto and esport that make the connection run deeper.
Blockchain networks like the Tezos Foundation are leveraging the power of esport sponsorships as marketing vehicles for coins and other projects such as NFTs. Meanwhile, there is a growing trend towards esports rewarding players with digital coins. This presents all sorts of possibilities in the emerging metaverse. In the past, crypto games have struggled to gain traction or widespread popularity. It could be that developers have been looking at it from the wrong end of the telescope and the esport market provides a ready made solution.
