Mobile gaming driving revenue in the US – Esports

For an extended period, the dialogue within the gaming industry centered on mobile as the next frontier. Now, in 2021, we are witnessing the profound arrival of that future.

By Josh Walfish

The surge in mobile gaming has been extraordinary, significantly accelerated by the COVID-19 pandemic. From March 2018 to July 2020, epic titles like Fortnite generated over $745 million (£536 million) in revenue from its iOS platform alone.

Despite the fact that nearly half of mobile gamers spend $25 or less monthly—primarily because many games utilize a free-to-play model—there has been a noticeable rise in spending. Research from Interpret shows that approximately 25% of iPhone users are now shelling out over $100 each month, with a similar 22% of Android users also surpassing that threshold. Overall, 45% of Android users report expenditures of at least $50 a month, slightly edging out the 41% of iPhone owners who do the same.

Analyzing the Data

Our society’s dependency on smartphones continues to intensify, with over 90% of Americans owning smartphones, and many other developed regions trailing closely behind. The increase in mobile gaming revenue is unsurprising, but the rate of growth presents crucial insights that sportsbooks must track moving forward. As everyday gamers invest more in mobile experiences, sportsbooks must adapt their strategies to tap into this burgeoning market.

The fact that over 40% of smartphone owners are now spending at least $50 monthly on mobile games translates to an annual expenditure of around $600. For a significant portion of the population, these figures are not trivial; about 25% of users are investing upwards of $1,000 annually into mobile gaming. What was once seen simply as the future of gaming is now a present reality, emphasizing an urgent shift from traditional PC gaming to mobile platforms.

Lessons from the Data

For sportsbooks looking to capitalize on esports betting, the timing for mobile gaming options may not be optimal just yet. Although many gamers are increasingly gravitating toward mobile platforms, traditional esports primarily remain entrenched in PC gaming. As a result, the current landscape lacks widespread mobile tournaments, which limits immediate betting opportunities in this space.

Moreover, the demographic landscape presents challenges, as a significant portion of mobile gamers belongs to age groups that are typically ineligible to wager legally. This raises concerns about whether mobile gaming betting offerings could effectively reach their target audience. Meanwhile, esports betting on PC-based titles is experiencing an upward trajectory, making it imperative for sportsbooks to leverage this growth while keeping a watchful eye on mobile developments.

To position themselves advantageously for the future, sportsbooks should begin gathering essential data in anticipation of the mainstream adoption of mobile gaming tournaments. While tracking statistics from the few existing mobile tournaments is challenging, accumulating this data is pivotal in unlocking the potential of mobile gaming bets. The stakes are high, and sportsbooks can ill afford to lag behind as the market evolves, necessitating readiness to seize opportunities when mobile betting gains traction.

The encouraging aspect for sportsbooks is that the groundwork laid in understanding esports will facilitate a smoother transition into mobile gaming. As revenues from mobile platforms continue to escalate, game studios will increasingly focus their efforts on building mobile-centric tournaments. Fortunately, sportsbooks possess the necessary infrastructure to adapt to this shift, provided they recognize the trends and start preparing now for the forthcoming evolution from PC to mobile.