Online gaming and gambling are projected to be growth areas again in 2020 according to Echelon Wealth Partners, for one, will be a likely beneficiary of the overall trend.
For its part, online gambling and e-sports were more front and centre in 2019, with acquisitions, league franchises sponsorship, advertising transactions and media rights all catching investor attention and pushing up publicly disclosed investment in e-sports to $1.95 billion last year.
The same goes for online betting which is being fueled by the opening up of the US to online sports betting, said to be heading towards the biggest regulated betting market in the world, reaching $5.0 billion by 2023, where it stood at merely $200.0 million in 2017.
The synergies between the two sectors are clear, according to Echelon Wealth analysts Rob Goff and Gianluca Tucci, who said the US market will create opportunity for online sport-content providers including e-sports betting platforms, along with being a boon for traditional casino operators, tech companies, betting aggregators and online sports content providers.
For eSports in particular, the future looks bright, as the monetization of the growing audience worldwide is still in its infancy, according to Goff and Tucci.
Within the world of e-sports, competition between streaming platforms will heat up in 2020, according to Goff and Tucci, with major deals being signed in 2019 by top names Twitch and YouTube, while Facebook Gaming has also entered the streaming field.
The analysts say that the heightened competition will work in favour of content creators and streamers who have significant audience leverage
“Apart from a user-friendly streaming infrastructure, it is mission-critical to offer multiple ways for content creators to monetize their channel,” wrote Goff and Tucci.