The Benefits and Risks of Gambling Sponsorships in eSports

The gambling industry is always looking for new growth opportunities. Esports is its latest target. From sponsoring major tournaments to creating in-house eSports teams, gambling businesses are making major moves in the world of competitive video gaming. The gambling sector has already succeeded in similar ventures in the past. Sportsbooks have been dominating sports deals in European football leagues for years. Now, they’re targeting eSports companies in North America, Europe and Asia. What’s the impact of betting partnerships in the eSports sector? Let’s find out.

Esports Betting Sponsorships: A Brief Overview

Most eSports companies are partnering with betting companies for the money. You can’t really blame them. Sportsbooks and casinos pay millions of dollars to have their logos and names associated with popular eSports brands. That said, the influence of the gambling industry in eSports cannot be fully understood without considering its broader impact. Beyond sponsorships, there are other facets where gaming and gambling intersect. For instance, New Zealand, like many other countries, has seen a rise in online casinos catering to players interested in both traditional casino games and eSports betting. This convergence raises concerns about the potential for increased problem gambling among eSports enthusiasts. While the regulations in New Zealand attempt to address these issues, it remains essential for the eSports community to remain vigilant about the broader implications of gambling involvement, which can extend to online casinos and other related platforms. To ensure responsible engagement with these platforms, readers may find it beneficial to consult independent review sources specializing in New Zealand's online casino landscape. That said, here’s why all the major developers and eSports organizations are accepting gambling money:

Funding eSports Tournaments

Funding an eSports competition isn’t exactly cheap. Organizers must spend a lot of money marketing the event. They might have to hire venues, buy equipment, and spend money on taxes, security, consultation, and management. By accepting money from betting companies, eSports companies can organize competitions efficiently. ESL, one of the biggest eSports promoters in the industry, works with popular sportsbook 1XBet for this same reason. ESL organizes competitions centered on CS: GO and Dota 2. Both of these games are owned by Valve Corporation, the same company behind Half-Life and Left 4 Dead. ESL runs two popular eSports leagues. That requires a lot of money to run properly. Now, most people watch eSports online free of charge. That leaves ESL and other organizers with brand sponsorships as the main source of income. While eSports leagues have multiple sponsors, they must keep finding new ways to make money. Accepting gambling sponsorships is an excellent way to increase revenues.

Solidifying eSports as a Real Sport

Five years ago, there was a debate about whether eSports could be considered a true sport. One of the things that made eSports seem less of a sport was that video game competitions didn’t attract serious brands. Fortunately, brands are now appreciating competitive video games. From Coca-Cola and Toyota to YouTube and Twitch, lots of brands are spending money to be associated with eSports. These partnerships give credibility to eSports. Millions of people are likely to watch a Fortnite competition backed by Mercedes, Toyota, and leading betting firms. Brands provide money used to organize professional competitions. Some of the money is used to pay players. Usually, eSports fans love to watch competitions with lucrative prizes. Think of the Fortnite World Cup or any major event by ESL. Big money attracts talented eSports players. And pro gamers bring the fans together. 

Helps Bettors Discover Great eSports Sportsbooks

Now that eSports is a genuine sport, betting sites have been providing betting markets during major tournaments. Some bookies actually give out free bets to new customers who want to bet on CS: GO, Dota 2, Call of Duty, and FIFA 23 competitions. How do you find a good betting site for eSports? For starters, check out betting sites that sponsor your favorite eSports tournaments. These companies support eSports games. Then evaluate them based on their bonuses, odds, payment options, and other factors. If you're into sports betting, check out casino streamers on Twitch. Learn how to play and win at slots, blackjack, and poker. And even if you don't plan to play casino games, watching pro gamers on Twitch can be entertaining. Some of them stream both video games and slots. In doing so, you can decide whether to focus on video game content. Or you could balance between video games and slots.

The Risks of Gambling Sponsorships in eSports

Not so long ago (2018), major US sports franchises and leagues were battling against the legalization of sports betting. The NCAA, NBA, and many politicians expressed fears that permitting sports gambling would have negative effects on sports like football, basketball, hockey, and eSports. Now that sports betting is legal, betting companies are free to sponsor video game tournaments. But what are the risks involved?

An Increase in Problem Gambling

Gambling sponsorships provide tremendous visibility for casinos and sportsbooks. Visibility means more customers. Unfortunately, more online gamblers increase the number of potential addicts. In countries like the UK, problem gambling is a major concern for leaders and the general population. To solve the issue, the government has been enforcing stricter rules regarding online betting. Unfortunately, not everyone lives in a country that addresses gambling addiction. And that means many people with betting addiction problems may never receive the help they need. 

Exposing Gambling to Young Fans

Esports is a sport for young people. The average eSports fan is 26 years old while the typical pro-gamer is much younger at 22 years. While there are older people who watch video games online, it’s the younger audience that’s at risk of harmful betting. When players as young as 14 years watch betting adverts on Twitch and YouTube, they might feel tempted to bet. This is especially true if the adverts are being endorsed by their favorite Twitch streamers. Now, many betting sites have measures designed to prevent illegal betting by minors. But in this age of technology, it’s not hard to bypass some of these measures. What's more, young players also have access to skin-betting sites to worry about. Skin betting platforms tend to welcome players of all ages. And many of them don't take effective measures to protect young eSports fans.