eSports
R&D rethink needed for sportsbooks to harness esports’ power
Esports betting is still grappling with a perception problem amongst operators. Despite the leaps and bounds in product development made by suppliers – particularly in the last two years – esports hasn’t shaken off the image built in the late 2010s.
Our good friend, Oliver Niner, Head of Sales at PandaScore, has been kind to share the below article with us.
There’s scepticism around esports betting’s value, how well it can actually perform and what’s needed to make it appeal to bettors. A big part of that comes down to perception, which shapes the research and development (R&D) choices made by each operator.
Self-fulfilling prophecy?
Operators who have put the research and development (R&D) resources into esports are seeing excellent growth, while others are still treating it like part of a long tail. The lack of a uniform approach to esports often translates into hesitancy to be bullish and invest in esports.
Whereas in the United States, post-PASPA sports betting has exploded and operators are seeking to capture as much territory and market share as possible because in most cases, you switch the lights on and the money comes in. It’s, of course, good business sense to take opportunities like this – you can apply the same templates used elsewhere on an incredibly lucrative market.
This kind of approach has been attempted for esports and hasn’t found the same success. Granted, the legislation for betting on esports has been somewhat slower than that of sports betting and iGaming.
However, bullish operators have acknowledged the fact that esports hasn’t found the same success in regulated states and asked what can be done differently, while for others, esports has been thrown into the too-hard basket or relegated to the bargain bucket.
For the latter, the fate of the esports vertical becomes a self-fulfilling prophecy – especially if an operator already using a budget esports product that throttles its very growth.
It takes two to tango
When esports is discussed in broader betting circles, you’ll often hear different versions of the same talking point: the problem with esports is no one is doing it well, it doesn’t innovate.
This argument is a case of the pot calling the kettle black. Esports is a driver of innovation, and it is sportsbook R&D that is holding it back.
Multiple suppliers on the market are investing significant resources into R&D, and bullish operators are leveraging these product innovations to acquire new customers and create engagements made for the internet age.
There are understandable reasons why sports betting doesn’t innovate. It’s largely because operators focus on acquisition, entering new territories and spending money on data rights. But the actual R&D on sportsbook products is left lacking, with ever-increasing cost-per-acquisition (CPA) numbers a clear symptom of this.
It means that if an operator does decide to use or acquire an esports specialist supplier but does little to cater its product and attempts to just lay the sports betting template over the top, of course performance will be throttled.
It’s like putting a Ferrari engine in a Prius – no offence to Toyota or Prius owners.
The same problem exists on the platform supplier front. Platforms are understandably focused on compliance and getting customers live, not necessarily improving models or their products.
Even the idea that if you just acquire an innovative company the problem is solved or you have found the solution, doesn’t hold water. In many cases, the company is acquired and plenty of noise is made about it, but there’s little organisational investment in R&D afterwards.
It’s not just in esports
These problems extend to customer acquisition and marketing for most emerging markets, not just esports. There’s a rush to use the same old playbook in newer sectors because it’s easy.
The fantasy vs. house sector in the US is already experiencing an acquisition arms race. As analyst Dustin Gouker points out, deposit match bonuses for new users on fantasy vs house products have jumped from $100 to as high as $500 in some places.
This is the same race that played out in sports betting and despite the costs, there’s little effort from most operators to try something different. There’s less work when you just put the same acquisition template on an emerging sector and call it a day. This seems to be an accepted practice in the industry, for better or for worse.
Esports betting success requires ongoing dialogue
Rather than attempting to wedge esports into hegemonic sportsbook approaches, sportsbooks need to take a completely unique approach.
The fact is the betting sector has barely scratched the surface – communities of esports fans are still dormant. Canadian operator Rivalry has built a successful, esports-first business by embracing the ever-changing internet culture that esports inhabits. French esports organisation Karmine Corp recently sold out a 30,000-person stadium for an event with no prize money up for grabs.
Innovative products developed on the supplier side like microbetting and betbuilders are only half of the equation.
Maximising esports revenues requires institutional investment, ongoing R&D and collaboration between suppliers and operators to create products and experiences. This includes having staff on the operator side that can drive and push the product further, and crucially, rethinking current sportsbook strategies and practices.
Building experiences for betting’s greatest emerging market – one that caters to your future core audience – takes investment, innovation and a willingness to experiment. If the industry wants to make the most of the Millennial and Gen Z audience that will become its primary customers, investment into R&D and close collaboration between suppliers and operators is needed. Many hands makes light work.
After a meticulous and measured research process in consultation with the needs of its clients, PandaScore has acquired a license to operate in the US state of Colorado.
Through the license, PandaScore has signalled its intentions in the US market: forging a supplier-led path to esports betting success in the US. Existing PandaScore clients can now enter the Colorado market, scale up their esports offering and build their future audience in the state’s esports-friendly regulatory framework.
Future clients can also be confident that working with PandaScore supports their growth strategy in the lucrative US market. The state’s esports-friendly regulatory framework serves as a solid foundation to cultivate an esports audience and take advantage of PandaScore’s innovative, revenue-driving products such as BetBuilder, player props and microbetting.
PandaScore selected Colorado as its first point of entry into US licensing thanks to the state’s large catalogue of esports titles and competitions that are eligible for regular betting, and the wide range of markets that can be offered. Additionally, the state’s flexible and innovation-friendly licensing regime makes it a strong market for PandaScore and its clients.
Securing the license also serves as proof of concept for the French esports supplier, PandaScore Legal Counsel Alexis Brunet noted that “securing the Colorado license is a strong signal of our intentions in the US and are serious about its potential. Esports in the United States is a fast-evolving regulatory environment, but it’s only going in one direction: expansion. We intend to provide our best-in-class products and services to our customers no matter where they are, and service one of the largest markets in the world.”
For PandaScore CEO Flavien Guillocheau, entry into Colorado in the US market was the natural next step in the company’s client-first, service-oriented approach: “For esports to succeed in the US, suppliers must lead from the front. Suppliers need to address the uncertainty around regulation which has held back operator investment and thus growth of the vertical.
“We’ve proven we know the market, get a license efficiently and do it in a way that puts operators first. We’re confident that if our clients are seeking entry into a given market, we can be completely straight with them, show them the viable pathway to success, and create the foundation and access they need to fully harness the potential of esports in one of its biggest consumer markets.”
Leading esports brand kick off a year of empowering women gamers, exclusive content, and tournaments
the*gamehers, the women-focused community gaming platform, and Thunderpick, the leading online esports betting platform and host of Thunderpick World Championship today announced the continuation of their partnership into 2025. The collaboration aims to empower the gaming community, specifically focusing on women and femme-identifying gamers and content creators, through an immersive 12-month campaign.
The campaign will feature a content series highlighting women in gaming through brand features, ambassador Twitch streams, exclusive ambassador content, and a biannual tournament that includes behind-the-scenes footage from the ambassador team. Thunderpick and the*gamehers recently hosted the successful femme-focused CS2 Wildcard Tournament in May of this year in Atlanta. More exciting details will be unveiled as the partnership develops.
“This partnership is the perfect way to promote women’s empowerment in esports and the overall gaming community, and we are excited to have the opportunity to partner with a company that has similar goals for women’s inclusion in gaming,” said Allie Young, President of the*gamehers.
“Thunderpick is committed to fostering diversity and inclusion within the esports community,” said Kelly Sanders, Head of Strategy at Thunderpick. “Our extended partnership with the*gamehers underscores our dedication to empowering women gamers and supporting femme-led esports organizations. We believe that in collaboration with the*gamehers we can not only better highlight the incredible talent of women in gaming but also inspire the next generation of gamers to pursue their passions without boundaries.”
eSports
HAWKS TALON GC HOSTS PANEL, NBA 2K TOURNAMENT AT WADE WALKER PARK FAMILY YMCA ESPORTS SUMMER CAMP
Hawks Talon GC, the official NBA 2K League affiliate of the Atlanta Hawks, hosted a panel and bracket style tournament on Wednesday at the Wade Walker Park Family YMCA as part of the YMCA of Metro Atlanta’s Esports summer camp.
Director of Marketing and Operations, Affiliate Leagues, Wesley Acuff, Hawks Talon GC Head Coach, Ismael ‘MAELO’ Diaz Tolentino, and Hawks Talon GC players Mark David “MDS” Smith, Ludlow “LOW” Samuels and Elijah “Underratedgoat” Spears spoke to 26 camp participants about their journey to the NBA 2K League, and the uniqueness and innerworkings of the League.
“Being able to work with the YMCA of Metro Atlanta and help with their Esports camp was extremely rewarding for our group to be a part of,” said Janice Koon, Vice President of G League, and NBA 2K League Operations for the Atlanta Hawks. “Our Hawks Talon Gaming Club always relish the opportunity to be able to interact with the young kids in our area, and it was a joy for them to talk to and play 2K with the campers this morning.”
After the panel, the group of campers split up into 13 teams to face off head-to-head in a NBA 2K 2v2, single elimination bracket tournament.
In addition to the tournament, the campers were able to utilize another PlayStation within the Wade Walker Family YMCA Esports lab and jump into a 2K game with the official NBA 2K League settings, while utilizing Hawks Talon GC player avatars. The campers were able to play by the official NBA 2K League rules and game settings to experience the authentic feel of being a professional NBA 2K player.
At the end of the tournament, the first, second, and third place teams received Hawks Talon Gaming Club t-shirts and sweatshirts, while all campers will be gifted an official Hawks Talon Gaming Club jersey with the YMCA patch.
“Our Y Esports summer camps help children build self-confidence, practice sportsmanship and gain news skills, while connecting with other gamers,” said Lorna Loh, executive director of the Wade Walker Park Family YMCA. “We greatly appreciate Hawks Talon GC’s partnership and commitment to providing our Y kids with an informative, fun panel about the league and interactive opportunities to improve their skills.”
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