88 percent of esports stakeholders anticipate investment and commercial activity to rise in the first six months of the year, according to recent research.
Foley & Lardner, a legal firm, teamed together with Sports Business Journal (SBJ) and The Esports Observer to compile the results of the fourth annual Esports Survey Report.
Esports-specific investment funds are expected to account for a large portion of respondents’ excitement, according to the study. An investment increase formerly assumed to come from conventional sports clubs, leagues, players, or celebrities is now thought to be coming from targeted private financing rather than traditional sources.
The majority of respondents (61%) indicated the continuous expansion of online streaming platforms as the primary driver of investment in the first half of 2022. ‘Covid-19 friction’ (for example, social separation) during live events and the waning attraction of conventional sports to younger generations came in second and third place, respectively, among projected drivers of investment.
Executives in the esports sector seem to be seeking stronger regulation as the sport continues its climb into the public eye. Esports requires a single regulating body for governance and rule-setting, according to the research, which found that 72 percent of respondents agreed or somewhat agreed.
As the esports betting sector increases, there are also worries from industry experts regarding the likelihood of manipulation. Findings from a survey show that the biggest risks to the esports betting market are inadequate detection mechanisms, as well as an absence of an overall regulating body to oversee the esports business. Because of the industry challenges in the marketplace, it’s crucial to find the best crypto bookmakers in order to avoid malpractice and losing your funds illegally. For this reason, there are many people who search for reviews in order to find whether or not a certain bookie is appropriate for their needs.
Native digital media consumption accounted for 54% of the prospects for development in the esports betting sector. The rise of legal gambling in the United States, a worldwide fan and customer base, and a legacy integration with cryptocurrencies were all factors that contributed to this. Every single one of them came within 11% of taking first place.
Professional gamers, broadcasters, and content makers were the most popular NFT use-types (64 percent). 54 percent of skins and animations, characters, or tunes were unique, as were 51 percent of esports-related virtual items and 51 percent of unique highlights from esports tournaments (44 percent).
There are several objective criteriaს that show that the esports sector continues to prosper, including an increasing number of gamers, greater consumption and involvement, increased online activity, and the rapid mainstreaming of its culture throughout the epidemic.
Eighty-eight percent of those who took the poll believe that investment and transaction activity will pick up in the first half of the year. One reason respondents are so confident is due to their belief that dedicated investment funds, which showed a 21% rise in our most recent poll and were identified by respondents as the most likely to boost their investment in esports this year, are on the rise.
As a senior consultant to Foley’s Sports and Entertainment Group, Bobby Sharma says, “What we’re seeing could be an awareness that the esports ecosystem is more sophisticated than the conventional sports environment.” Consequently, it’s taken some time, but the main investment vehicles in the field have started to establish a very unique degree of competence and portfolio, which it appears the market is now better understanding.
COVID-19 friction during live events and the decline in the attraction of conventional sports with younger generations ranked second and third, respectively, as projected drivers of investment.
Michael Wall, of counsel and corporate lawyer at Foley, says that although the epidemic has had a good influence on the expansion of esports, it has had a bad impact on conventional sports leagues and clubs. At least in the short-term, conventional sports investors’ esports investments may have been harmed by their efforts to recoup from this terrible blow.”
As esports becomes more popular, it seems that industry leaders are pushing for more regulation. Over the last two years, the number of people who believe that an esports regulatory body is necessary has increased from 44% to 72%.
Furthermore, as the esports betting market expands and the stakes rise, industry insiders are worried about the likelihood of fraud. Esports betting markets are threatened by a lack of sufficient detection methods, monitoring tools, and an overall regulating organization, according to a survey of esports betting market participants.
Despite these reservations, the majority of survey participants saw numerous growth prospects for the esports betting market, including native digital media consumption (54 percent), increased adoption of regulated gambling in the United States (29 percent), an already global fan and consumer base (28 percent), and legacy integration with cryptocurrencies (11 percent).
Security and malware assaults (42%) and intellectual property rights (40%) are seen as the esports industry’s biggest threat by respondents in the 2020 study. There was, however, no clear winner. There was a tight race between cyberbullying in games, contracts that don’t adequately safeguard gamers, and concerns relating to workers’ rights and the workplace.