According to an analysis by Newzoo, global esports revenues are expected to eclipse the $1 billion mark for the first time ever in 2019, continuing the expansive growth of the competitive video gaming industry.
The research firm released a report on Tuesday that found that the esports industry as a whole brought in $865.1 million in revenue last year.
Brand Investments Fueling Growth
The company projects that the sector will reach revenues of $1.1 billion in 2019, an expected growth rate of 22 percent year over year. Newzoo provided projected revenues through 2022, when they see esports revenue rising to nearly $1.8 billion.
“This is not experimental budgets. This is for the long term, and it’s good amounts of money,” Newzoo CEO Peter Warman told Reuters about the major investments happening in esports. “It’s what the ecosystem needed and what investors wanted to see.”
As the esports sector grows, it could also become a more important part of the sports betting industry. At the moment, while betting is available on many professional events at some online sportsbooks, it is considered a small niche for bookmakers. That could change in the next couple of years, however, with NJGames.org estimating that total wagering on esports competitions could rise to as much as $12.9 billion by 2020.