In 2020, Fast Offshore experienced a big uptick in the number of people wanting to open an eSports betting company. This was driven by increased visibility in the public domain of this once underground sporting activity. As millions flocked to tune in to eSports tournaments, many placed bets.
iGaming operators saw what was happening and many savvy entrepreneurs sought to capitalise on its growth. If you’re someone that wants to open an eSports company, this is all you need to know.
eSports history
eSports historyThe world’s first eSports event took place at Stamford University in 1972. The game was Spacewar and the big prize was a year’s subscription to Rolling Stone magazine. By 1980, interest had started to grow. The Space Invaders Championship attracted around 10,000 people and received big coverage in the media. As attention increased and more people became involved in the eSports market, the prizes grew. As you know, where there is big money involved in competitions, bettors get interested.
eSports betting started in a somewhat informal way on underground sites and in a casual way between viewers. But as the market has continued growing, online betting sites started to sit up and take notice.
Things have come a long way since Spacewar in 1970. Now eSports tournaments have prizes of millions of dollars, are watched by millions more, and are piquing the interest of those who like to bet.
eSports in 2020
2020 was the year that eSports solidified itself in the mainstream consciousness. What was once a niche market, became one of the most in-demand sporting and betting events of the year. As the global pandemic resulted in the cancellation and postponement of many sporting leagues, sports fans and operators were left wondering how to fill the void. Thankfully, eSports, which had already started to emerge as a popular sport, stepped up.
By the end of the year, the eSports market was worth over $1 billion. Analysts expect it to reach almost $7 billion by 2027. While previously, its annual growth rate was between 15% and 17.2%, going forward it’s predicted to sharply increase at a rate of 24.47%.
This impressive growth was fueled by several factors, not just the pandemic. Increased internet access and smartphone usage drove the global betting industry forward significantly, as did a wave of new betting accounts. Overall, the online gambling industry saw significant gains during the year with reports of up to a 300% increase in new accounts and increased revenue across the board. This also helped in the development of the eSports market in 2020. As the demographic of those interested in eSports is generally between 18 and 35, this opened up the betting and online gambling market to a relatively untapped segment of the market.
Amidst this landscape, Fast Offshore noted an increase in interest from entrepreneurs looking to open an eSports company. Some were existing online gambling operators, others were first-time startups looking to capitalise on the growth of the iGaming sector combined with the interest in eSports betting.
The future of eSports
If you are one of those considering opening an eSports betting company, you might be unsure of how to get started. First, you need to understand the future benefits of operating an eSports betting site, and how you can make it happen. Then, you need to consider where your target audience will be and what you will offer them.
Why you should open an eSports company?
Why you should open an eSports company?The answer to this question is simple: eSports is booming, it’s attracting more and more viewers and bettors each day. Furthermore, there is consensus from multiple sources that the sector will continue to grow at a steady rate over the next few years. This means that the time is now for those looking to leverage its popularity and potential.
How to open an eSports company?
To open an eSports betting company, you will need an online gambling license, incorporate a company, get a bank account, and an agreement with payment processors. Then you will need a website and possibly an app, a marketing strategy, software to facilitate betting, and a great customer service team. Of course, there is much more to the process and requirements than just this, but these are the basics.
Fast Offshore has been working in the iGaming industry for over 22 years. We specialise in providing corporate services and setup assistance to operators. We have been working with eSports betting company operators for several years and have assisted many in launching successful platforms. To make things easier and more convenient, we offer both turn-key and custom packages. These take clients from square one to going live in an efficient manner.
Where to open an eSports company?
eSports betting is popular in most of the same countries that have higher viewership figures. This includes several Asian countries such as China and Japan. South Korea also enjoys high viewership and betting statistics, as does India. Outside of Asia, Brazil registers a lot of interest, followed by Russia, France, and Denmark. The UK has a thriving eSports watching and betting scene as does Canada.
The United States has very high viewing figures for eSports but due to complex federal and state laws, Fast Offshore doesn’t work with the provision of licenses for operators to offer to bettors in the US.
But eSports being popular in these countries, doesn’t mean you want to open an eSports company there. Rather, operators opt for offshore locations such as Curacao, Kahnawake, and Malta to base their company and get licensed. These jurisdictions provide a range of benefits including, cost efficiency, flexibility, fiscal incentives and even privacy. By incorporating a company and getting licensed in an offshore jurisdiction, you still have the freedom to offer eSports betting services to clients in countries where the market is thriving. Find out more about which jurisdiction is optimum for your requirements.
Which eSports games should you consider offering?
There is a long list of games that are played competitively and can be wagered on. There is however a handful that wields big prizes for players, drum up a lot of hype, and drive increased numbers of bets. If you want to open an esports company, you need to consider this carefully.
While the ranking of which games are the most popular, does change, it does tend to consist of the same few. In 2020, Counterstrike: Global Offensive was the number one game with 13,029 professional players. League of Legends was second with 7,130 professional players, and Fortnite was third with 4,346 professional players. Other popular games included Dota 2 and Overwatch. These could change position in 2021. But, it seems likely that Counterstrike will remain in the top spot as it leads significantly.
Others to consider include Call of Duty, Hearthstone, Rainbow 6 Seige, and Rocket League. These games can rake in between 20k and 2 million viewers per event. This means a huge pool of potential punters.
Ones to watch for the upcoming year include Valorant, Wild Rift, Melee, Supercell Games, and Halo Infinite. If you have the capacity, including these in your offerings could help to maximise your success and client base.
Contact Fast Offshore
With over two decades of online betting and gambling experience under our belts and a multidisciplinary approach to corporate services provision, we are a perfect choice. Fast Offshore can take you from the planning stage, right through to launching your eSports betting platform. With transparency and professionalism at the core of everything we do, Fast Offshore provides flexible business services to those operating or wanting to operate in the iGaming sector. To open an esports company, or to just have an informal chat about your ideas, contact us today.
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