Market Insights Advertising & Media Esports

Esports Betting - United States

United States

In the United States, revenue in the Esports Betting market market is projected to reach €0.7bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.61%, which will result in a projected market volume of €1.1bn by 2029.
With a projected market volume of €0.7bn in 2024, the majority of revenue is generated the United States.
The average revenue per user (ARPU) in this market is expected to amount to €49.8.
In the United States, the Esports betting market is experiencing a surge in popularity, driven by increased youth engagement and the legalization of online gambling in several states.

Key regions: India, Sweden, United Kingdom, Asia, Germany

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Analyst Opinion

The eSports market in the United States is experiencing substantial growth, driven by factors such as the increasing popularity of digital sports, rising interest in eSports among consumers, and the convenience of online betting services. This significant growth rate is impacted by the continuous development of new games, increasing prize pools, and the growing number of eSports tournaments and events.

Customer preferences: As esports continues to gain popularity in the United States, the demand for esports betting has also increased. However, with the rise of virtual sports due to the COVID-19 pandemic, there has been a shift towards online betting platforms. This trend is not only influenced by the convenience and safety of online betting, but also by the younger demographics who are more comfortable with technology and prefer digital experiences. This shift towards online betting is expected to continue even after the pandemic, as it aligns with the evolving lifestyle of consumers who prioritize convenience and digital solutions in all aspects of their lives.

Trends in the market: In the United States, the Esports Betting Market within the eSports Market is experiencing a surge in popularity, with more traditional sports betting companies entering the market. This trend is expected to continue as the legalization of sports betting expands across the country. Additionally, there is a growing trend of using data-driven analytics and artificial intelligence to enhance betting experiences and increase accuracy of predictions. This trend has significant implications for industry stakeholders as it opens up new revenue streams and opportunities for innovation in the Esports Betting Market.

Local special circumstances: In the United States, the Esports Betting Market within the eSports Market is heavily influenced by the country's strong sports culture and regulatory framework. The popularity of traditional sports such as basketball and football has led to a high demand for betting on esports tournaments and events. Additionally, varying state laws on gambling and the recent legalization of sports betting in some states have also impacted the growth of the Esports Betting Market. The strong presence of tech companies and the availability of high-speed internet have also contributed to the development of the market.

Underlying macroeconomic factors: The Esports Betting Market within the eSports Market in the United States is heavily influenced by macroeconomic factors such as economic stability, consumer spending, and government policies. The growth of the market is directly impacted by the overall health of the national economy, as a strong economy leads to increased consumer spending on leisure activities such as esports betting. Additionally, favorable fiscal policies that support the growth of the esports industry, such as tax incentives and subsidies, can also drive market growth. In contrast, economic downturns and regulatory challenges can hinder the growth of the market. Furthermore, the growing popularity of esports and the increasing number of esports events in the country are also contributing to the growth of the Esports Betting Market within the eSports Market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports betting market, which comprises revenues from online betting on Esports events. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.