Taking a chance on esports – Esports

Cole Rush speaks with Justin Dellario, CEO of esports operator Unikrn, about engaging a primary audience, the convergence of esports and betting, and the challenges of entering the U.S. market.

As the CEO of Unikrn and managing director of esports for Entain, Justin Dellario has navigated a busy landscape in recent months, particularly following the strategic relaunch of Unikrn in December 2022, after Entain’s acquisition of the esports operator in October 2021.

The relaunch aimed to establish Unikrn’s presence in lucrative markets such as Brazil and Canada (excluding Ontario) with ambitions to penetrate the U.S. market imminently. Dellario emphasizes that Unikrn possesses all the necessary components for success within regulated environments, combined with unique offerings tailored for the esports betting sector. “We have one of the most expansive offerings of markets and features for esports betting globally,” he asserts. “In addition, we provide a full traditional sportsbook alongside our esports platform.”

Moreover, Unikrn diversifies its offerings with innovative products such as skill-based wagering, esports virtuals, live casino experiences, and various engaging features tailored for esports fans and gamers.

Targeting the New Generation of Gamblers

Unikrn’s core demographic targets a “post-university, Gen-Z” audience. “This group is incredibly digitally native,” observes Dellario. “They expect streamlined, inclusive experiences and have grown up in a social media-driven environment. There’s a substantial customer base eager to engage with our platform.”

Understanding the cultural relevance of esports, Dellario emphasizes that these younger players view esports as a compelling form of entertainment and are predisposed to betting due to Unikrn’s unique focus. “We’re one of the few operators dedicated exclusively to esports and video game betting, which can help us capture their interest.”

Importantly, Dellario maintains that Unikrn operates solely in markets where it can acquire the necessary licenses. “As part of the Entain group, we have no intentions of operating in gray or black markets,” he asserts. This commitment aligns with Unikrn’s overarching objective: to engage constructively in the esports ecosystem.

“Our strategy involves considering how to run a successful business while providing an appealing offering,” he explains. “We also focus on how we can contribute positively to the health and sustainability of the broader esports community.” This vision translates into strategic partnerships with game developers, athletes, teams, advertisers, and other stakeholders.

Exploring the Intersection of Esports and Betting

The appeal of esports resonates with audiences for similar reasons to traditional sports—fandom. Dellario captures this sentiment, highlighting the electricity of competition: “There’s a strong community around players, teams, and the thrill of competition itself. That enthusiasm often inspires fans to enhance their viewing experience with a wager.”

While esports differ from traditional sports primarily in their nascent status, they are rapidly capturing a dedicated audience, especially among younger viewers. Dellario points to the importance of recognizing the robust but varied age demographics of esports audiences, noting, “A significant portion is underage, and we only aim to communicate with adult audiences. However, the passion seen across both esports and traditional sports appears strikingly similar.”

In terms of market readiness, while the U.S. has made strides in legalizing sports betting, it lags regarding the acceptance of esports betting. “International markets, such as Australia and Brazil, present vibrant betting cultures that are already deeply engaged with esports,” Dellario remarks.

Regarding entry strategies into new markets, Dellario emphasizes, “We must adhere to consumer protection standards and regulatory guidelines. We also have the task of educating our audience, which presents its own unique set of challenges.”

Trends Shaping Popularity in Esports Betting

According to Dellario, titles such as “Counter-Strike: Global Offensive,” “League of Legends,” and “Dota 2” dominate the esports betting landscape while also being prominently featured in global viewership metrics. These established games possess a longevity that is crucial for sustained interest and betting activity. “They’ve been integral for years and likely will remain relevant,” he asserts.

Conversely, new titles often see surges in popularity aligned with major releases or content updates, which Dellario notes can directly influence betting trends. Games like “Rainbow Six Siege” and “Valorant” have gained traction, owing to their consistent introduction of innovative content. “Interest in these games naturally correlates with betting activity,” he adds.

The U.S. Opportunity in Esports Betting

Dellario recognizes the untapped potential of the U.S. market for esports betting, stating, “Video games are excellent at fostering strong communities in this region.” Nevertheless, the intricacies of state-by-state regulations complicate market entry. “We need greater acceptance and clearer definitions about how esports will be regulated nationally,” he expresses, noting the inconsistencies in legislative approaches across states.

These regulatory ambiguities can often lead to confusion. “Some jurisdictions encompass esports under a broader sports umbrella, while others neglect to address them altogether. Such discrepancies present unique challenges,” he explains. Additionally, the presence of gray market options complicates consumer understanding, where users may unknowingly engage with operations that exist in a legal gray area.

For esports betting to thrive in the U.S., Dellario emphasizes, “We need a well-rounded approach. Getting it right entails not just understanding esports betting but also contributing positively to the overall esports ecosystem.”

Envisioning Unikrn’s Future

Looking ahead, Unikrn has ambitious plans for expansion into new markets. “However, our entry is hinged on our confidence in the capability to operate sustainably and responsibly within local regulations,” Dellario expresses. “We’re also committed to being active contributors to the esports ecosystem through meaningful partnerships and by providing unparalleled offerings for our customers.”

Moreover, Unikrn is dedicated to continuous product improvement and user engagement. “We aim to connect with our users actively and understand what provides them long-term value,” he states. As the esports sector continues to ascend, Unikrn appears poised to capitalize on emerging opportunities while ensuring a responsible and sustainable approach to growth.