PandaScore’s 2023 esports betting report card

In 2023, the esports betting landscape has proven remarkably resilient, signifying its entrenchment as a mainstay in the gambling industry. This analysis from PandaScore delves into the market dynamics and highlights key performance metrics relevant to stakeholders.

PandaScore observed a substantial uptrend in the total volume of esports bets placed through our operator partners. Notably, the average wager per bet surged to €45, reflecting a 37% increase compared to 2021. This upward trajectory underscores a growing appetite among consumers for esports betting.

The overall betting turnover also exhibited significant growth, despite the broader esports ecosystem grappling with a market adjustment characterized by budget reductions and the consolidation of professional teams. Remarkably, margin performance remained stable or improved for numerous suppliers and operators, indicating that the sector continues to hold strong despite external pressures.

As we analyze the data, it becomes evident that the pool of esports bettors is expanding, with individuals placing larger wagers, further driving year-on-year turnover increases. The conclusion drawn from 2023 is clear: esports betting has emerged as a resilient vertical that resonates profoundly with consumers.

Let’s explore the factors contributing to this robust performance.

Leading Esports Titles for Betting

Counter-Strike: Global Offensive (CS:GO) consistently dominates the betting landscape, accounting for a remarkable 60.2% of total turnover among PandaScore clients. Its entrenched position is a testament to its enduring popularity and the robust betting culture surrounding it. Nonetheless, emerging esports titles are gradually gaining traction, signaling a shift in bettor preferences.

Dota 2 has solidified its second-place standing among bettors, while League of Legends (LoL) has experienced a notable decline in performance. Traditionally, domestic competitions in China and Korea have drawn substantial interest, with the North American League Championship Series (LCS) following close behind. However, this year, reduced viewership for the LCS has corresponded with a decline in betting volume.

The inclusion of football esports, particularly EA Sports FC matches, in PandaScore’s portfolio has yielded promising results, generating 5.7% of total turnover in its inaugural year. It’s critical to note that this segment appeals to a different profile of bettor, characterized largely by casual sports fans rather than traditional esports enthusiasts.

Furthermore, Valorant’s transition to a shorter structured season has produced noteworthy impact on its betting market. Despite this shift, Valorant continues to experience healthy growth in terms of turnover and is positioned favorably compared to other long-tail titles.

Valorant vs. Long-Tail Titles

Beyond the dominant trio of CS:GO, Dota 2, and LoL, examining the lesser-known titles provides valuable insights into the competitive landscape of esports betting. Valorant, exhibiting explosive growth, stands out among other titles, with Call of Duty ranking alongside it. With state-by-state regulatory progress in the United States, Call of Duty remains a title to watch, particularly given its professional landscape’s U.S. concentration. Valorant’s popularity among North American esports fans reinforces its status as a frontrunner, making it imperative to monitor its continuous ascent against the long-tail competition.

The Rise of Live Betting

In recent years, live betting has seen a marked increase in popularity, escalating from a 55-45 split to a dominant 65% preference among bettors. This trend mirrors developments within traditional sports betting, indicating not only a shift in consumer behavior but also a notable enhancement in the live betting experience. Innovations such as bet builders have contributed to heightened engagement, capturing the attention of more bettors.

Top Esports Competitions for Bettors in 2023

Reflecting the overall turnover trends, the premier competitions of the past year have largely been dominated by Counter-Strike events. ESL Pro League competitions are frequently among the highest-grossing, driven by their extensive format featuring 32 teams across numerous matches. The Paris Major, in particular, marked a historic milestone, crowned by the hometown team Vitality’s victory.

The absence of any Dota 2 tournaments in the top 10 competition rankings raises eyebrows, even with Dota 2 showcasing greater overall turnover than League of Legends. The Dota Pro Circuit (DPC) structure resulted in an extensive volume of matches, leading to turnover diffusion across less prominent tournaments rather than centralizing on major events.

In response to this challenge, game publisher Valve is overhauling the DPC model, opting for a more decentralized approach. The implications for the betting landscape remain to be seen, but it potentially paves the way for innovative competition structures.

PandaScore’s Positive Outlook for 2024

Valve’s restructuring efforts appointing prominent tournaments at the forefront, alongside ESL’s initiatives to implement extensive qualifiers, suggest encouraging prospects for 2024.

Furthermore, the LCS’s return to a weekend schedule, after mixed results from midweek matches, is expected to bolster both local fan engagement and betting volume. As the legal landscape for esports betting gradually evolves across various U.S. states, increased turnover on the LCS may soon follow.

Operators and suppliers express optimism regarding Valorant, looking forward to observing the potential benefits of the newly established Partner Program, which aims to enhance league stability and player-team connections — fundamental factors influencing betting behavior.

With the inaugural Major of the recently launched Counter-Strike 2 commencing in March, ensuing shifts in competitive structures may reshape betting patterns. Nonetheless, it is evident that the betting interest in Counter-Strike continues to be robust, promising sustained engagement across the platform.