Posted by AGORACOM-JC
at 2:02 PM on Wednesday, May 8th, 2019
SPONSOR: Esports Entertainment
$GMBL Esports audience is 350M, growing to 590M, Esports wagering is
projected at $23 BILLION by 2020. The company has launched VIE.gg
esports betting platform and has accelerated affiliate marketing
agreements with 190 Esports teams. Click here for more information
GMBL: OTCQB
———————–
Esports, are you ready for your own Netflix?
Image via Higher Level Gaming
Higher Level Gaming launched this week with a focus on four main titles; League of Legends, Fortnite, Apex Legends and, Overwatch. Creators include the likes of FaZeApex, Tarzaned, Maniac, and Chronodota.
Focused on bringing in content creators with a focus on educational content
A new content platform has launched in partnership with some of the most popular streamers in the world to produce exclusive content for what is being called the ‘Netflix of esports.’ The platform is called ‘Higher Level Gaming’ (HLG) and plans to provide content creators with professional support that enables them to produce world-class content for esports fans.
Similar to other rival content platforms, content creators will enter
a partnership with the HLG platform; however, it will be much easier to
achieve this status than previously. Any person or company who is
interested in being an affiliate can promote the site. HLG will
compensate all affiliates by giving them a percentage of every user that
signs up.
HLG is focused on bringing in content creators with a focus on
educational content. The mix of content includes VOD’s, coaching
sessions, and general guides that are designed to help players improve
their skills. As the company grows, it also intends to start producing
original esports content to rival the worlds best streaming platform.
Higher Level Gaming launched this week with a focus on four main
titles; League of Legends, Fortnite, Apex Legends and, Overwatch.
Creators include the likes of FaZeApex, Tarzaned, Maniac, and Chronodota.
HLG
has plans to continue adding creators and expand into new titles as
soon as possible. Users can sign up for a free trial on the official Higher Level Gaming website, once the free trial is over users will be able to activate a subscription that enables access to all content.
Posted by AGORACOM-JC
at 8:14 AM on Wednesday, May 8th, 2019
Sims Resource has grown its subscriber base to 61,000 monthly registered users.
The increase of 11,000 users represents a 20% increase in subscriber base from the initial definitive agreement (see press release announced January 5, 2019). Â
TSR’s subscribers pay on average C$5 per month to access its VIP features growing the recurring revenue stream from paid subscriptions to over C$3.5 million on an annual run rate.
TORONTO, May 08, 2019 — Enthusiast Gaming Holdings Inc. (TSXV: EGLX) (OTCQB: EGHIF), (“Enthusiast†or the “Companyâ€) is excited to announce that its digital property,  The Sims Resource (“TSRâ€) has grown its subscriber base to 61,000 monthly registered users. The increase of 11,000 users represents a 20% increase in subscriber base from the initial definitive agreement (see press release announced January 5, 2019).  TSR’s subscribers pay on average C$5 per month to access its VIP features growing the recurring revenue stream from paid subscriptions to over C$3.5 million on an annual run rate.
When Enthusiast announced the acquisition of TSR, the largest female
gaming website in the world, the site had 50,000 monthly subscribers
representing 40% of the annual revenue. The increase further validates
the engagement of the TSR community and the demographic’s willingness to
pay for exclusive content and features.
Women drive 70% to 80% of all consumer purchasing(1), through a
combination of their buying power and influence. TSR’s significant
network of female gamers, which is ranked #7 on Quantcast’s Top 25
websites with the highest concentration of female audience in the United
States (behind Oprah.com and Bravotv.com), positions the network as a
leading destination for advertisers looking to target the female
demographic.
Menashe Kestenbaum, CEO of Enthusiast commented, “All
of the digital properties we have acquired have grown since inception,
which supports our growth strategy though accretive acquisitions.One
of the leading factors for our decision to acquire TSR was their
successful subscription model. The continued growth of their registered
user base, further validates the engagement of their audience and also,
the significant opportunity to growth recurring monthly revenue. We see
great potential for this model and are currently looking at
opportunities to adopt it across our entire network.â€
The TSR subscription model was one of three key revenue drivers for
Enthusiast. The current subscription model allows registered users to
have access to premium features and a simplified download experience.
The subscription model has the potential to add considerable revenue
across Enthusiast’s entire portfolio as it introduces it across its
network of owned sites. In addition to the subscription model,
Enthusiast sees an opportunity to drive revenue through direct sales. To
date, TSR’s advertising revenue has been largely based on organic,
programmatic advertising, and the addition of a direct sales strategy
would allow the optimization of advertising revenue to contribute to the
existing programmatic revenue.
TSR is the largest female video gaming content site in the world
generating in excess of 2.5 billion page views per year and Comscore’s
Gaming Information category currently ranks TSR in the top 5 independent
video game websites. With the rapidly growing female video game
segment, TSR provides Enthusiast immediate reach into this valuable
audience.
Founded in 2014, Enthusiast Gaming is the largest vertically
integrated video game company and has the fastest-growing online
community of video gamers. Through the Company’s unique acquisition
strategy, it has a platform of over 80 owned and affiliated websites and
currently reaches over 75 million monthly visitors with its unique and
curated content and over 50 million YouTube visitors. Enthusiast also
owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live
Expo, EGLX, (eglx.ca) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com.
CONTACT INFORMATION:
Investor Relations: Julia Becker Head of Investor Relations & Marketing [email protected] (604) 785.0850
This news release contains certain statements that may constitute
forward-looking information under applicable securities laws. All
statements, other than those of historical fact, which address
activities, events, outcomes, results, developments, performance or
achievements that Enthusiast anticipates or expects may or will occur in
the future (in whole or in part) should be considered forward-looking
information. Such information may involve, but is not limited to,
comments with respect to strategies, expectations, planned operations
and future actions of the Company. Often, but not always,
forward-looking information can be identified by the use of words such
as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or
variations (including negative variations) of such words and phrases, or
statements formed in the future tense or indicating that certain
actions, events or results “may”, “could”, “would”, “might” or “will”
(or other variations of the forgoing) be taken, occur, be achieved, or
come to pass. Forward-looking information is based on currently
available competitive, financial and economic data and operating plans,
strategies or beliefs as of the date of this news release, but involve
known and unknown risks, uncertainties, assumptions and other factors
that may cause the actual results, performance or achievements of
Enthusiast to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
information. Such factors may be based on information currently
available to Enthusiast, including information obtained from third-party
industry analysts and other third-party sources, and are based on
management’s current expectations or beliefs regarding future growth,
results of operations, future capital (including the amount, nature and
sources of funding thereof) and expenditures. Any and all
forward-looking information contained in this press release is expressly
qualified by this cautionary statement. Trading in the securities of
the Company should be considered highly speculative.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
The securities of the Corporation have not been and will not be
registered under the United States Securities Act of 1933, as amended
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirement. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
Posted by AGORACOM-JC
at 9:30 PM on Tuesday, May 7th, 2019
SPONSOR: Enthusiast Gaming Holdings Inc.
(TSX-V: EGLX) Uniting gaming communities with 80 owned and affiliated
websites, currently reaching over 75 million monthly visitors. The
company exceeded 2018 target with $11.0 million in revenue. Learn More
Recent figures documented by Newzoo have suggested that revenues from esports will hit an astonishing $1.1 billion this year.
This is thanks to a phenomenal growth rate of 26.7% since 2018, and it’s clear that it is the involvement of big business that is helping esports become a world beater.
Everybody knows that esports is one of the fastest growing entertainment trends in the world. What began as a fairly nerdy activity in Korea at the turn of the century has grown to become a world-beater that is even starting to eclipse traditional sports. If there was any doubt about the success of esports, then you just have to take a look at the fact that competitive gaming is set to become a billion dollar industry in 2019.
Recent figures documented by Newzoo have suggested that revenues from
esports will hit an astonishing $1.1 billion this year. This is thanks
to a phenomenal growth rate of 26.7% since 2018, and it’s clear that it
is the involvement of big business that is helping esports become a
world beater.
Recently we have seen many multinational brands paying huge amounts
of money to advertise their products at esports tournaments and even
sponsor competitive gaming teams outright. From the likes of McDonalds
sponsoring the massive ESL esports tournaments in Germany, to Red Bull
partnering up with some of the most successful competitive gaming teams,
it seems that just about everybody is jumping on the esports bandwagon.
What’s truly remarkable is the fact that even traditional
broadcasters seem to be taking esports seriously. When the likes of ESPN
start covering gaming tournaments, it shows that something significant
is happening with many people’s perceptions of video games.
Just a few years ago, the idea of millions of people tuning in to
watch other people play games would have seemed laughable. But the fact
that over 200 million people watched last year’s League of Legends
Worlds final shows that esports is a big spectator event, plus there are
now even esports betting resources like www.esports.net that allow
people a safe and easy way to bet on the outcome of the action.
Even many of the world’s most famous sporting organisations are
seeking to get involved with esports as a way of extending their brand
appeal. From iconic soccer clubs like Paris Saint Germain and Manchester
City, to legendary American football sides such as New England
Patriots, it seems that there’s something of a goldrush to invest in the
best new esports teams and players. What makes things all the more
interesting is the way that new titles keep being added to the esports
realm. Alongside classic esports like League of Legends, Counter Strike
Global Offensive and Dota 2, recently we have seem games like Overwatch
and Playerunknown’s Battlegrounds becoming real sensations in
competitive gaming. And with new titles like Fortnite and Apex Legends
joining the fray, it seems as though there is no slowing down in the
sheer range and scope of gaming options.
For a long time it looked like the fractious and chaotic world of
esports would be impenetrable for mainstream viewing audiences. But with
Blizzard Entertainment helping to set up the Overwatch League with a
fixed set of teams and even a guaranteed player salary, it has
standardised the gaming action to make it much easier for fans to
follow.
Obviously, there is still plenty of antisocial behaviour from some
young gamers to deal with, but we are also seeing growing moves from
esports governing bodies to effectively reprimand some of the more toxic
attitudes that have made gaming off-putting for outsiders. As a result,
we are starting to see some esports being included as legitimate medal
sports in traditional sporting events such as the SEA Games later this
year. All of which shows that esports is set for a massive year in 2019.
Posted by AGORACOM-JC
at 9:15 PM on Sunday, April 7th, 2019
Ambitious approach to rounding up these audiences between owned and affiliated media, YouTube channels, and a convention that had over 55,000 people attending in 2018
A market leader in digital media for video gaming
Its platform represents more than 80 websites reaching 75 million monthly visitors, as well as 900 YouTube channels reaching 50 million additional monthly visitors.
The video gaming industry’s media audience goes beyond just the
players of video games; there is now a robust audience of non-player
spectators as well. This considerably shifts the dynamics of media in
the eSports space making it similar to the media ecosystems of
traditional sports, and creating correspondingly profitable business
opportunities.
Toronto-Based Enthusiast Gaming Holdings Inc.
(“Enthusiast Gamingâ€) (TSXV: EGLX | OTCQB: EGHIF) has taken an
ambitious approach to rounding up these audiences between owned and
affiliated media, YouTube channels, and a convention that had over
55,000 people attending in 2018, making it one of the market leaders in
digital media for video gaming. Its platform represents more than 80
websites reaching 75 million monthly visitors, as well as 900 YouTube
channels reaching 50 million additional monthly visitors.
Strategically Partnering with and Acquiring Channels
Enthusiast Gaming has built a respectable portfolio of media assets
through partnerships and acquisitions. At the beginning of 2019,
Enthusiast Gaming announced a partnership with US-based Omnia Media Inc.
(“Omniaâ€), to exclusively represent all of Omnia’s online gaming
traffic in the United States, through Omnia’s multi-channel YouTube
network which, across 900 channels, has 50 million monthly visitors and a
base of more than 400 million subscribers.
In November 2018, Enthusiast Gaming acquired Operation Sports LLC
(“Operation Sportsâ€), which operates a leading web portal for eSports
and video game content. Under Enthusiast Gaming’s ownership, the
subscriber base of Operation Sports grew by more than 100,000 users,
bringing the total subscriber base to over one million users as of March
20, 2019.
In-Person Engagement
Part of how Enthusiast Gaming has built its audience organically is
by cultivating engagement through its flagship convention Enthusiast
Gaming Live Expo (“EGLXâ€). Its first iteration in 2015 saw 1,700
attendees, growing to 12,000 attendees in 2017, followed by 24,000
attendees in March 2018, and 30,000 attendees in October 2018. EGLX is
the largest gaming expo in Canada, and the event has sponsors that
include Bell Canada, Nintendo, World Gaming, LG, and eBay. Enthusiast
Gaming is contemplating expanding EGLX to other North American cities in
light of significant growth in the video gaming sector.
Diversified Base of Revenues
Enthusiast Gaming generates earnings through a number of revenue
categories. Video content attracts advertising payments, and EGLX
produces revenue from show admissions, exhibitor booths, and show
sponsors. Paid user subscriptions are another form of revenue for
Enthusiast Gaming. For example, Enthusiast Gaming acquired The Sims
Resource in January 2019, which generated approximately CAD $2.8 million
in subscription payments in 2018, making up about 40% of its revenue.
Enthusiast Gaming Holdings Inc. has a current market cap of CAD
$57.60 million and commenced public trading on the TSX Venture through
an IPO on October 4th, 2018 with a closing price of CAD $1.07. TSXV:
EGLX closed April 4th 2019 at a price of CAD $1.25, up 16.82% since
inception.
Posted by AGORACOM-JC
at 10:00 AM on Friday, April 5th, 2019
SPONSOR: Esports Entertainment
$GMBL Esports audience is 350M, growing to 590M, Esports wagering is
projected at $23 BILLION by 2020. The company has launched VIE.gg
esports betting platform and has accelerated affiliate marketing
agreements with 190 Esports teams. Click here for more information
GMBL: OTCQB
———————–
Professional esports are just getting started, Take-Two CEO says
According to research firm Newzoo, esports is projected to generate $1.1 billion in revenue in 2019, marking the first year the industry would reach the billion-dollar mark.
Earlier this week at the Barclays Center, 74 men and 1 woman got the
chance to live out a dream — they became professional competitive
gamers.
The esports athletes were officially drafted for the second season of
Take-Two‘s NBA 2K League, the gaming giant‘s esports league featuring
their flagship NBA 2K sports video game franchise. Take-Two Interactive
CEO Strauss Zelnick emphasized the excitement surrounding the league‘s
second season, highlighting the popularity and rising importance of the
esports industry as a whole.
“The first season ended with a great result, and everyone‘s looking
forward to the April second tip-off,†he said Friday on CNBC‘s “Fast
Money.†“Over 250 million people worldwide consume esports as a form of
entertainment. About half of them, 125 million, are avid esports
watchers.â€
According to research firm Newzoo, esports is projected to generate
$1.1 billion in revenue in 2019, marking the first year the industry
would reach the billion-dollar mark.
In many ways this year‘s NBA 2K League embodies how quickly the space
is growing. AT&T is joining the likes of Dell and Intel as a
partner for the league, which has also expanded to 21 teams from the
original 17 NBA franchise-owned teams that hit the virtual court during
last year‘s inaugural season.
This year‘s draft pool also included 22 international players from
outside of the U.S., reflecting the overall industry‘s drive to expand
globally. Among the players in the draft pool was Chiquita Evans from
Chicago, who became the league‘s first female player in a time when the
esports industry as a whole is grappling with discussions around
diversity and inclusion.
Ultimately, Zelnick believes that esports leagues like NBA 2K will boost the video game industry as a whole.
“We‘re having a record year with NBA 2K, so one of the things we love
is that when there‘s more hits in the market, there are more people
engaged and the entire market grows,†he said. “So we‘re going to sell
more units of NBA 2K this year than ever before, we‘ll have higher
recurrent consumer spending than ever before.â€
But the biggest gaming companies are facing stiff competition. While
Take-Two and Activision Blizzard have dove into esports, with Blizzard‘s
Overwatch League being the latter‘s most recent investment in the
space, they‘re still facing the likes of other publishers who have
dominated the industry.
For example, Tencent-owned Riot Games‘ “League of Legends†events
still draw huge numbers of viewers, with last year‘s World Championship
finals attracting nearly 100 million unique viewers who watched the
match (for comparison, this year‘s Super Bowl had 98 million viewers).
This while Epic Games‘ “Fortnite†also continues to dominate online
viewership, both recreational and competitively.
Zelnick, however, believes that those same competitors, like “Fortnite,†lift the games industry as a whole.
“We think that ‘Fortnite‘ is a great thing for the industry, it has
probably brought in a somewhat younger consumer,†he explained. “I‘m
often asked if it‘s something that has hurt us. To the contrary, we‘ve
seen the market continue to grow at the same time that ‘Fortnite‘ has
been an extraordinary hit for Epic.â€
This despite the fact that some analysts believe game revenues could
be set to decline. Back in January, London-based research firm owner
Pelham Smithers forecast that video game revenue is headed for its first
decline since 1995 on the back of tightening regulations in China, a
shortage of big console hits in 2019 and waning player enthusiasm for
battle royale titles like “Fortnite.â€
But Smithers also made his predictions before the release of
Electronic Arts‘ “Apex Legends,†which took the gaming world by storm
and garnered 50 million players in just one month. The battle royale
title is yet another name in the free-to-play ecosystem that has
revolutionized the gaming industry in the last few years, allowing users
to download a game at no cost. In this case, the vast majority of
revenue is made through in-game purchases and microtransactions, which
have become dominant sources of earnings for many publishers.
This has led even the biggest publishers to explore in-game
monetization. Zelnick notes that not only have microtransactions become
the “biggest opportunity†to encourage users to continue interacting
with a title, but it ultimately is the biggest measure of engagement.
“Microtransactions is spending, and that‘s a reflection in our view
of engagement,†he said, adding that they often are a result of “making
the highest quality enttertainment†that “[engages] the customer.â€
“If we get that right, monetization follows, revenues follow and
profits follow, and that‘s been our story for the 11 years that we‘ve
been responsible for this enterprise,†he added.
Additionally, the Chinese government has seemingly eased on their
game approval regulations. After freezing game approvals for months last
year in a content crackdown on gaming companies, Chinese regulators
have since approved 80 new games in January and one more for gaming
giant Tencent in late February.
Despite the games industry‘s growth, Activision Blizzard and Take-Two
Interactive have struggled with both stocks down 9 and 15 percent
respective this year. Thanks to its “Apex Legends†sensation, Electronic
Arts has outperformed its competitors and surged 25 percent.
Posted by AGORACOM-JC
at 2:04 PM on Monday, April 1st, 2019
SPONSOR: Enthusiast Gaming Holdings Inc.
(TSX-V: EGLX) Uniting gaming communities with 80 owned and affiliated
websites, currently reaching over 75 million monthly visitors. The
company partial 2018 reported revenue of $7.4 million representing a
625% increase over the same period in 2017.
EGLX: TSX-V ———————————-
Video Game Competitions on a Rise; Companies Spot Lucrative Opportunities in North America, says FMI Study
The global Esports market is expected to exhibit a significant growth owing to various factors such as the continued deployment of eSports in leading universities and the increasing number of eSports initiatives driven by the growing consumer preference shift.
The younger generation is increasingly attracted to virtual gaming thereby strengthening the future scope of the eSports market.
“Media companies are giving greater preference to the coverage of eSports, thereby contributing to its increasing awareness amongst consumers. This is expected to create greater demand for eSports among consumersâ€, Senior Analyst, Future Market Insights.
The global video game competitions market
has reflected a significant growth over the recent years. The visible
growth exhibited by the video game industry has contributed to an
increase in the number of video game competitions and tournaments. This
is further fostered by the expanding technology that acts as a catalyst
to the expansion of video content, virtual reality, products, special
eSports events, and most prominently video game competitions and
tournaments. Future Market Insights (FMI) in its recent market
intelligence report pertaining to the video game competitions market
provides a holistic overview of the key trends shaping the fortune of
businesses conducting video game competitions through eSports programs.
According to the FMI study, the popularity of video game competitions
is expected to witness a significant rise as the millennials are opting
for virtual gaming compared to the conventional sports formats. Various
colleges and institutions are looking forward to initiating video game
competitions for their students. An addition in this line is the Alma
College that stated that it would add team video game competitions to
its offerings of intercollegiate athletics. The college would be able to
attract top students with the help of such team video game competitions
while providing innovative ways for students to excel professionally
and academically.
FMI unveils that the video game competitions landscape is expected to
register considerable growth with the various eSports programs being
launched across the globe. The eSports market has witnessed major
profitability owing to the increasing proliferation of video game
competitions.
ESports Audience Continue to Grow Steadily as Companies Focus on Prominent Coverage of such Events
The global Esports market is expected to exhibit a significant growth
owing to various factors such as the continued deployment of eSports in
leading universities and the increasing number of eSports initiatives
driven by the growing consumer preference shift. The younger generation
is increasingly attracted to virtual gaming thereby strengthening the
future scope of the eSports market. The extensive research study on the
eSports landscape presented by Future Market Insights (FMI), covers the
major developments witnessed in the eSports landscape.
“Media companies are giving greater preference to the coverage of
eSports, thereby contributing to its increasing awareness amongst
consumers. This is expected to create greater demand for eSports among
consumersâ€, Senior Analyst, Future Market Insights.
For instance, a recognized eSports organizer and producer, ESL
entered into a partnership with broadcast companies in China, Huomao and
Huya, wherein the companies would gain an equal share of media rights
of the ESL events that would be conducted in 2019.
Recognized companies are sighting notable opportunities in the
eSports market, such as NASCAR which is preparing for its new eSports
league called the eNASCAR Heat Pro League, and several others including
NFL, NBA, MLS’ and NHL, have also moved into the eSports business. FMI
study, therefore, asserts that eSports would remain a profitable
business for companies.
The research study uncovers various opportunistic avenues offered by the eSports market, where emerging players could undertake key strategies to attain greater market presence.
eSports and competitive gaming are growing in popularity and gaining viewership each month. The current value of the eSports market is approximately $900 million, a figure that should continue to rise throughout the year.
Consider that the prize pools for the most popular eSports games (League of Legends, Dota 2, Call of Duty) get richer with each passing year. The International 2017, the world championships for Dota 2, broke the record for the largest prize pool in eSports history at $24,787,916. But more impressive is that every International since 2014 has accomplished that feat.
And as with any successful industry, a greater valuation means more money will follow. For competitive gaming, that has taken shape in the form of eSports sponsors and gaming sponsorships. These eSports sponsorship deals are helping push international competitions from a niche segment to full-fledged sporting events.
Below, we’ve compiled an eSports sponsors list that highlights some of the major companies that are attaching their names and dollars to competitive gaming.
Intel:Â Has sponsored Intel Extreme Masters along with ESL (Electronic Sports League) since 2006. This is the longest-running eSports tournament in existence.
Melia Robinson
Coca-Cola: The soda giant sponsors the League of Legends World Championship, one the largest eSports competitions on earth. But to take it a step further, Coca-Cola and Riot Games partnered with some cinemas to host more than 200 simultaneous viewing parties for the 2016 League of Legends World Championships throughout the U.S., Canada, and Europe.
Comcast Xfinity: The cable and internet provider sponsors both ESL and the eSports team Evil Geniuses, which competes at the highest levels in Dota 2, League of Legends, and more.
Red Bull: Energy drinks such as Red Bull are major proponents of eSports. The company began by sponsoring tournaments for Blizzard’s StarCraft 2 and then branched out into Dota 2. Red Bull sponsors competitions and teams, such as Tempo Storm.
Mountain Dew: The soft drink company sponsors several eSports teams, including Team Dignitas, Splyce, and Team SK Gaming. It also started the Mountain Dew League, which helps amateur teams try to make it to the pros.
T-Mobile: The wireless carrier sponsored eSports organizations TSM and Cloud9 starting in August 2017. T-Mobile also sponsored Twitch’s E3 fighting game tournament “Twitch Esports Arena” in June 2017 at the Staples Center in Los Angeles.
Mobil 1: The synthetic motor oil brand sponsors the Rocket League Championship Series. It’s a natural fit, as Rocket League is a game in which two teams of three remote-controlled cars play soccer.
Audi: The German automaker began sponsoring Counter-Strike: Global Offensive team Astralis in January 2017.
Airbus:Â The aeronautics company announced a sponsorship with eSports team Out of the Blue in October 2017.
More to Learn
As the eSports market grows, more sponsors and investors will flow into the industry, which will create a booming opportunity for all the players involved. To see how it all fits together, BI Intelligence, Business Insider’s premium research service, has put together a comprehensive guide on the future of professional gaming called The eSports Ecosystem.
Currency is being introduced through a new game, Breakaway, developed by Twitch owners, Amazon, through its subsidiary Amazon Game Studios.
Breakaway includes the option to make bets using the new virtual currency, Stream+.
During a brief video demonstration of Breakaway, Amazon Game Studios showed that players could wager on matches and earn Steam+ coins by watching.
Adam Wong, managing editor for Double Helix, part of Amazon Game Studios, explained:
“We wanted to create more ways for viewers, broadcasters and players to interact with each other on Twitch, so various teams within Amazon Game Studios are building new features that enhance the experience between players, broadcasters and viewers.â€
Patrick Gilmore of Amazon Game Studios gave only slightly more information on Stream+:
“Stream+ is a loyalty points system where players can earn points by watching streams.â€
He added that Stream+ points could be spent on wagering, but exactly how the system will work, and whether the Stream+ points or coins would be tradable across or outside of the Twitch platform was left unaddressed.
Game currencies raise regulatory issues
The issue is important from a regulatory point of view. The UK Gambling Commission (UKGC) has made its position clear.
If a virtual currency or in-game article (a skin) can be monetised, then it is the equivalent of money. If used for an activity that qualifies as gambling, then the provider needs a gambling licence.
“Where ‘skins’ are traded or are tradeable and can therefore act as a de facto virtual currency and facilities for gambling with those items are being offered, we consider that a licence is required.â€
Twitch will almost certainly avoid skin betting controversy
The last few months have seen Valveattempt to stop its Steam platform being used for skin betting. Almost all the betting has revolved around CS:GO skins, which could be traded and monetized on third party sites.
Valve’s approach to the regulatory and reputational risks that arose will have been taken on-board by Twitch.
The likelihood is that Twitch will make certain that any gambling using Stream+ will fit strictly within the confines of the legal definitions of social gaming.
This will not prevent Twitch or game producers from receiving revenues from the sale of Stream+ coins, but will mean that Twitch is likely to set ground rules preventing the coins from subsequently being monetized.
Esports Betting Industry Coverage Brought To You By Betway
Esports betting may see second order benefits
While the new currency may not see esports betting operators benefit directly, it may introduce more players and fans to the fun of betting on their favorite players and games.
This greater awareness that betting is possible reduces the gap which esports betting operators have to bridge in attracting customers.
If customers are accustomed to betting on in-game action in Breakaway, betting real money on a Dota 2 or League of Legends tournament will be less of a novelty.
Melia Robinson