So many different industries have been affected since the end of 2019 by the emergence of Covid. Some have changed dramatically and suffered from millions of job losses. The tourism industry has been affected across the entire globe. Hospitality has been hit equally hard. But other industries have changed and adapted.
Two industries that changed in different ways are the casino and gambling industry, and the video games world.
Video games only got stronger during the pandemic due to being one of the most accessible forms of entertainment. The casino industry was affected differently. Traditional gaming rooms had to close, and the result was that many players then moved online.
This had the effect of knocking land-based venue’s profits but simultaneously improving their online cousins. For businesses that had a live casino online for players to visit it was good news. For those more independent casinos, not so much.
Now though, traditional casinos are looking to bounce back, and it is video games that could help them.
Why are casinos looking towards eSports for their future?
It would be simplistic to say that casinos, or bookmakers, are looking at eSports to save them. The industry has always been great at adopting new technology and innovating.
The casino industry has invested in RFID to help remove the risk of chips being stolen. They use NFC or near-field communication to allow easy check-in for guests. They are also using VR and AI to develop virtual casinos.
There are nearly 3 billion individuals around the world who regularly play video games. To ignore them would be to dismiss a huge potential market. The casino industry has watched as eSports has grown, and it is now realizing ways to monetize this area.
How can casinos make money from eSports?
It isn’t only traditional casinos that are looking to make money from eSports. An online live casino is just as likely to have an interest in this area. Casinos primarily are looking at eSports as another market for gamblers to bet on.
This makes sense when you look at the lack of sports betting in the US and some other countries. People like to gamble, and when presented with a new option, they will often take it. Another reason why eSports are useful to casinos is the video game players themselves.
Back in 2012, skins were introduced to video games. These NFTs allow weapons and other items to have their appearance changed in the game itself. Pretty soon after they were developed, they started to obtain financial value. As there was no way of selling them at the time, people started to bet with them.
This shows that there is already a number of video games fans that like to bet. Now offer them a way to gamble on their favorite eSports teams and players, and hey presto, the casino makes money.
Are casinos entering into eSports in any other way?
Several of the biggest eSports events were canceled last year due to Covid. This led to the prize money for The International, becoming the biggest ever. Dota2 prize money broke the Guinness Book of Records for eSports.
Of course, it is news like this that has caught the casino industry’s ears and eyes. Land-based casinos in Las Vegas have definitely caught wind of eSports’ success and are looking to fully embrace it.
Traditionally Las Vegas has been linked with casinos, but they have also been aware of providing other attractions. Some Michelin-starred chefs work or own restaurants in Sin City, and there are world-famous names who perform live there too.
World title fights have taken place in the areas of Las Vegas, with some of boxing’s biggest names winning and losing. It is this type of event that the casinos are looking at.
After seeing how big some of the esports tournaments are, some casinos have decided they want to be hosts. The Luxor Casino has built a state-of-the-art arena purely for eSports. This area is available for gamers to visit daily and has been used successfully for tournaments for the last three years.
What is the future for eSports and casinos?
One area that you may see more of is the streaming of eSports on sportsbooks and casinos on the internet.
Streaming of games is already highly popular, but when combined with gambling it could become even bigger. When a gambler visits a casino online for sports betting, they will often be able to watch the game or event on that site. For example, someone may bet on horses and they can open a window to view the race live.
eSports could also be watched this way with live betting as games play out. Traditional casinos may decide to go down the same path as Luxor and build their own arenas.
The biggest source of revenue though is likely to be through gambling itself. It isn’t just Las Vegas that has spotted the potential, even countries such as the Philippines are now allowing betting on eSports.
The online casino industry is still thriving, but the traditional ones have stumbled during the last year, and eSports is possibly one of the ways that they can not only survive, but start to grow again. Boxing has lost some of its glamors, people are worried about close contact with other people. However, streaming events and taking bets means they can combine both land-based experiences, the internet, and gambling.
Summary
eSports is still a relatively new phenomenon. Not so long ago it would have seemed highly unlikely that anyone would be making money from playing video games. Now, however, some of the most popular games are highly profitable for gamers to play. There have been huge winners such as the 16-year-old who won $3 million from the first Fortnite World Cup.
Then there are the businesses involved. Casinos and sportsbooks can both profit from eSports too by sponsoring events, streaming them, hosting them, and taking bets from all across the world. Video games are not going anywhere, and nor are casinos. It seems likely they may become more intertwined in the future.
