In the last few years, there’s been a notable increase in the success of the iGaming sector. Thanks to the convenience it offers to players, many are turning to these iGaming platforms as opposed to land-based establishments. But while there has been an uptick in iGaming-related laws and overall popularity, collaboration between it and the esports industry has been limited.
The reality is that esports and iGaming are two sectors that could mutually benefit each other should more collaborations take place. Here are some of the reasons for this:
Similar Audiences
One of the reasons why a collaboration between these two industries would make sense is simply the fact that their audiences largely overlap. The sort of person who enjoys the kick of playing an esports game and completing difficult levels would also appreciate the skill and luck factor involved in online casino titles. Certain iGaming options like Plinko and other crash games have a gaming element to them, which suggests that those interested in them could also be interested in esports. As gambling writer Milan Novakovic explains, sites like Stake offer many games that overlap in concept and features with esports.
This means that promoting an iGaming platform to an esports player would be relatively effective, as would promoting esports to an iGaming player. As iGaming is trying to become even more mainstream and is finding avenues to advertise, the esports sector might be a grossly overlooked option.
Competition Within iGaming
Looking at many iGaming platforms will show you that competition is already a major part of their business model. Besides the individual games that players can use to win money, many also host tournaments. In these tournaments, individual players can compete against each other with a large prize on the line, and many can even join teams. There are leaderboards, progressive levels in the tournament, and a major event to close out each season. This sounds very similar to what you see in esports, which makes them a good fit. A person who’s already used to the competition element of iGaming will find a leap into esports to be very easy to make.
Technological Similarity
The technologies used to facilitate igaming and esports also share a lot of similarities, which would make collaboration much easier. For example, live games have become especially popular among iGaming players and see games played in physical locations and then livestreamed to the player. This is similar to the way esports tournaments are live-streamed to an audience and would lend itself very well to collaboration between the two.
There are also things like augmented reality and virtual reality, which have been staples of esports for a long time. But believe it or not, even the iGaming space is starting to get in on the action. There’s more emphasis on very hyper-realistic visuals and a more immersive experience for players. Thus, both industries find themselves leaning on relatively the same technology, and this can address pain points and benefit consumers. For example, there is a very heavy emphasis in iGaming on identity and age verification. While esports does not have the same level of emphasis, it is nevertheless important at certain tournament levels. By leveraging the same technology that iGaming has been using for years, esports companies can achieve greater efficiency.
Sports Advertising
Another reason why collaborations between esports and iGaming would make sense is the fact that they tend to lean on the same avenues for advertising. iGaming companies are known to advertise during sporting tournaments and other such events because sports fans are the type to place wagers on games. Similarly, esports tournaments are known to advertise during real-life sports events because those who like watching such events are likely to be interested in esports as a whole. This shows that not only do the current audiences for esports and iGaming overlap, but potential customers do as well. This means that through collaboration, efforts to target this audience can be made even more efficient, and this benefits everyone in the two ecosystems.
Use Of In-Game Assets And Alternative Payment Methods
One of the ways that igaming has stood out over the years has been through the use of in-game assets and alternative payment methods. Many platforms have native tokens used to place wagers, and this offers several benefits that consumers cannot find with fiat currency. On top of this, there has been greater use of cryptocurrency assets to allow for more privacy, transfer more profit, and so on. The same pattern can be observed in esports, where many of the gaming titles have native assets that are either used as tools or are rewards in themselves.
This creates a bountiful avenue for collaboration as the same crypto tokens used in iGaming can also find their way to the esports world. Similarly, companies in both spaces can collaborate on assets that may be transferred across and used in both spaces and allow players to seamlessly transition between both types of gaming without losing any of their progress or benefits.
Esports Betting
Anyone familiar with iGaming will know that traditional gaming titles like casino games and crash games are not the only things you can place wagers on. In reality, many iGaming platforms also allow users to place wagers on esports. Because esports tournaments are becoming a bigger deal, with bigger prize pools and a bigger audience, many iGaming fans also want to bet on them. Many avenues have been created to address this demand, and this shows a clear link between the two Industries. Moving forward, esports tournaments can collaborate with iGaming platforms for official wagers. In the same way that certain football tournaments or companies endorse sports betting platforms, esports companies can team up with iGaming sites to maximize consumer spend and cross-promote each other. The iGaming platforms, in return, can act as sponsors for these tournaments, increasing the financial resources they have to work with and further benefiting their audiences.
Regulatory Lobbying
Esports and iGaming occupy a similar situation of being relatively new concepts within old industries, i.e gambling and gaming. This means, inevitably, that they have to navigate some regulatory murky waters. From their legal recognition to taxation, both Industries will have to lobby to garner favor from regulators, and this is one of the biggest avenues for collaboration. These will not only help to secure short-term benefits but will lay the foundation so both industries can continue to thrive well into the future.
Conclusion
iGaming and esports have been separately making their strides in the last few years, but now, many opportunities exist for them to mutually benefit. From collaborative events that see their overlapping audiences engage with both ecosystems in one go to regulatory lobbying to ensure a better landscape, to simply advertising across each other’s platforms, both spaces have a lot to offer the other. Hopefully, the next few years will see these collaborations come to light, and lovers of esports and iGaming will be the ones to benefit the most.
