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E-SPORTS REVENUES TO PASS $1 BILLION BY 2019?

Tuesday, January 26, 2016 : E-SPORTS REVENUES TO PASS $1 BILLION BY 2019?
 
Latest Newzoo study predicts vertical's revenues will boom 43 percent to $463 million this year…and that does not include betting.
 
The research company Newzoo reports in its latest eSports survey that 2016 will be pivotal for the vertical, and that non-betting revenues will rise 43 percent to $463 million, continuing to surge until at least 2019, when they will top $1 billion.
 
Newzoo says this correlates with an audience of 131 million eSports enthusiasts and another 125 million "occasional viewers who tune in mainly for the big international events."
 
The study found that investment and advertising associated with eSports continues to grow, commenting:
 
"This year has been dominated by the amount of investors getting involved in eSports. An increasing amount of traditional media companies have become aware of the value of the eSports sphere and have launched their first eSports initiatives. With these parties getting involved, there will be an increased focus on content and media rights. All major publishers have increased their investment into the space, realizing that convergence of video, live events and the game itself are providing consumers the cross-screen entertainment they desire from their favorite franchises."
 
On the advertising front, Newzoo found that online activity in eSports has been particularly vibrant, rising a remarkable 99.6 percent yar-on-year on a global range, with North America especially active.
 
Researchers at Newzoo predicted:
 
"In 2016, North America will strengthen its lead in terms of revenues with an anticipated $175 million generated through merchandise, event tickets, sponsorships, online advertising and media rights. A significant part of these revenues flows back to the game publisher, but across all publishers, more money is invested into the eSports economy than is directly recouped by their eSports activities."
 
Newzoo's eSports Analyst, Pieter van den Heuvel, said that China and Korea together will represent 23 percent of global eSports revenues, totalling $106 million in 2016.
 
"Audience-wise, the situation is different, with Asia contributing 44 percent of global eSports enthusiasts. Growth in this region is, for a large part, fuelled by an explosive uptake in Southeast Asia," he revealed.
 
At present eSports is primarily a volume business, with average annual spend per eSports player just $2.83 in 2015, which is expected to rise to $3.53 this year...that's lower by a factor of four than mainstream sports activity on traditional sports like basketball, which generates revenues of $15 per fan per year.
 
Peter Warman, CEO at Newzoo observed in his report: "The initial buzz will settle down and the way forward on several key factors, such as regulations, content rights and involvement of traditional media, will become more clear. The collapse of MLG was a reminder that this market still has a long road to maturity and we need to be realistic about the opportunities it provides. In that respect, it is in nobody's interest that current market estimates differ so strongly.
 
"Luckily, when zooming in on the highest market estimates of more than $700 million, the difference is explainable by an in-depth look. This estimate only differs in the revenues generated in Asia (Korea in particular), and by taking betting revenues into account. At Newzoo, we believe betting on eSports should not be mixed into direct eSports revenues as the money does not flow into the eSports economy. Similarly, sports betting is not reported in sports market reports."

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Gambling News :

2016 WPT Borgata Main Event Results - @MrJesseJames888 Four years ago the poker world watched as Jesse Sylvia and Greg Merson fought it out in the heads up of the World Series of Poker main event, with Sylvia narrowly defeated but taking home a second placing pay check for $5,292,889.

G-Sports debuts with the game Road Redemption - #esports Land, online and mobile gambling publisher Gamblit Gaming has debuted in the burgeoning eSports sector, unveiling its new eSports platform branded G-Sports with the hit PC and console game Road Redemption.

French licensed gambling operators lost $5M in 2015 - #france Numbers released by the French online gambling regulator ARJEL have illustrated the continued folly of a ring-fenced and restricted online gambling market saddled with a harsh and operator-unfriendly tax regime.

NO PRIVATISATION FOR ONTARIO LOTTERY - The privatisation of the Ontario provincial lottery will not go ahead despite proposals by major companies like IGT-GTech, Scientific Games and Rogers Communications submitted in response to the provincial government’s 2014 Request for Proposals.

Space Invaders wins Best Slot Product Award - The growing emphasis on skill-based slot machines that are more appealing to the millennial demographic has seen Scientific Games awarded a Best Slot accolade for its Space Invaders game at the 2016 Gaming and Technology Awards.

Loss Recovery Act has again been defeated in a class action lawsuit - #gameofwar Illinois notorious Loss Recovery Act has again been defeated in a class action lawsuit...this one emanating from in-game activity on a mobile social gaming video game.

NEW MARKETING CAMPAIGN FROM LADBROKES - The Ladbrokes land and online gambling group has launched its latest marketing campaign, with the first television advertisements ready to screen this Saturday.

Gamesys acquires Snowcat Games - London online gambling provider Gamesys has announced the acquisition of Estonian online gambling games developer Snowcat Games for an undisclosed consideration, noting that the deal will strengthen its development capabilities.

BetConstruct adds virtual sports products - The Golden Race package includes premium virtual content including; football, tennis, Real MMA Fighting, horse and greyhound racing, along with lotto and keno games content.

Netent Mega Fortune Pays Euro 4.9 million - #NetEnt progressive slot Mega Fortune has delivered another instant millionaire, this one an anonymous Norwegian online punter wagering on the Betsson.com website.

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