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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Acquirer Market Spotlight: Sports and E-sports Betting
The Growing Popularity of E-Sports Betting:
- E-sports betting, or betting on competitive organized video gaming, falls under the umbrella of sports betting.
- The ability to stream e-sports made it easier for them than traditional sports to adapt to the “new normal” of the pandemic.
- Consumers were able to watch livestreams from the safety of their homes, contributing to the e-sports global audience growth to 435.9 million viewers in 2020.
- Even as consumers no longer need to fill the void of traditional sports, gaming and e-sports betting will see steady growth.
- Mercator Advisory Group anticipates the U.S. gaming market will grow to $70.6 billion in 2021, representing a 24% year-over-year growth.
- A major challenge in the e-sports betting space is the lack of clarity regarding its legality in the United States.
Rapid growth in sports betting is gaining attention not only from investors and regulators but in the world of banking and fintech too. Even though the regulatory environment is friendlier, there are still risks in servicing this nascent industry.