Already, European gaming giant Paddy Power Betfair has agreed to acquire fantasy sports company FanDuel in anticipation of multiple states legalising gambling on professional and amateur sports by the end of the year.
Although FanDuel previously shut down its fantasy eSports platform, AlphaDraft, CEO Matt King tells THR that, fueled by the sale, the company is once again planning to expand into the category, which has become the fastest-growing fantasy business for rival DraftKings. “eSports is definitely an area of focus for us,” King says. “If you look at Vegas, there are lots of people who bet on eSports.”
Most eSports companies are expected to embrace a healthy (and legal) gambling ecosystem because they see it as a way to boost viewership and engagement around their live events and televised matchups. “It’s another way to engage in the matches,” explains Tobias Sherman, founder of game studio and eSports consultancy Foundry IV and former head of eSports for WME-IMG.
Indeed, a spokesperson for Riot Games, the company behind the popular online battle arena game League of Legends, says the company is watching the space closely, noting, “The Supreme Court ruling will have profound impact across all of sports, including League of Legends.”
The global eSports industry is expected to grow by 38% to US$905.6 million in 2018, according to the research firm Newzoo, as advertising dollars flood the market and the price tag to broadcast or live-stream popular matches skyrockets. That’s dwarfed by the US$6.7 billion that analytics firm Narus expects the eSports betting market to be worth, driven by the popularity of wagers on video game competitions in other parts of the world where gambling is already legal.
Source: GMB / Hollywood Reporter
