Convergence Of Cryptocurrency And Esports Betting

It’s funny to think how Bitcoins were nearly worthless less than two decades ago. Back in 2010, two pizzas could cost BTC 10,000. Now, buying a pretty good car with only BTC 1 is possible. No one questions the real-life value of cryptocurrencies today, which one can use to buy coffee at Starbucks, a Tesla car, or even a house. 

So, it shouldn’t be surprising that cryptos are gaining traction in esports and online sports betting. Here’s where and how both worlds meet.

The Rise of Crypto Gambling

Crypto casinos aren’t new. The first one appeared only a few years after Bitcoin started gaining popularity in the world. Cryptos weren’t so popular when the crypto platform SatoshiDice was launched in 2012. Nevertheless, its innovations were ground-breaking. There weren’t many crypto-friendly businesses around yet, and the online gambling industry was still ignorant about its potential. 

SatoshiDice has given them a very entertaining purpose, but not only that. Blockchain-based operations provided unprecedented levels of privacy and safety. Traditional e-wallets already allowed players to fund their bankrolls without disclosing banking information, but these transactions could be completely anonymous for the first time. 

Blockchains are nearly impossible to tamper with, which makes them safer against cyberattacks and scams. Blockchain-based systems are also very transparent, allowing users to check on the results recorded on them and opening space for provably fair games. Besides, crypto payments are much faster and cheaper than traditional methods. Since cryptos are global currencies, users don’t need to buy a different currency to play on foreign platforms. 

Obviously, SatoshiDice is no longer the only fish in the sea, and countless online casinos and crypto esports betting sites are available now. The crypto gambling market size grew from USD 50 million in 2019 to USD 250 million last year, and the steep upward trend will likely continue. Innovative platforms have been embracing tokenomics, creating engaging exclusive betting opportunities and juicy reward schemes.

Defining Esports

Those old enough to remember what happened in the 1980s and 1990s will know that playing against human opponents wasn’t easy. Players should be in the same room for once, playing on the same console. It doesn’t mean there weren’t video game competitions, but they weren’t as serious as today’s competitions are. 

The first competition involving digital games occurred in 1972 in the United States. The top prize was merely a one-year Rolling Stones magazine signature. Nowadays, a (really, really) good Dota 2 player can bring home over USD 18 million in global tournaments with media coverage comparable to real-life sports. Hence the name “esports”.   

The jaw-dropping evolution of esports competitions didn’t go unnoticed by online sportsbooks like Sportsbet.io. Nowadays, punters can bet on individual players or teams just like they do with regular sports, guessing outright winners, scores, and so on. Nowadays, there are even Olympic esports competitions, and this niche is more professionalized than ever. 

Indeed, professional players have an incredibly intense training routine. The most competitive players practice over eight hours a day, six days a week. Just like regular sports, they have sponsors, fully equipped training centers, full-time coaches, federations, teams, and leagues. The biggest tournaments have also received extensive media coverage, increasing their popularity. 

According to projections, over 318 million people will follow esports events this year. Such visibility has been attracting even more sponsors. Moreover, many companies take this opportunity to advertise their products. People mostly follow those events through platforms like YouTube and Twitch, but traditional TV networks like Disney are also investing in live streaming them as the global audience grows. 

Cryptocurrencies and Esports

Crypto and esports enthusiasts have much in common, such as the drive for technological novelties. Most crypto users are between 18 and 40 years old, with millennials leading the way, which accounts for over 70% of this market. Meanwhile, most esports fans aren’t older than 35. So, there’s a considerable demographic overlap between both audiences. 

It partially explains why this market has been growing so much, and it should wrap up 2025 with a global revenue of USD 1.886 million. However, cryptocurrency is much more than a tech-savvy payment method for those who want to bet on the next esports tournament. For those who play esports, it allows for seamless in-game transactions, acquisition of exclusive items, and innovative reward systems. 

In this context, non-fungible tokens (NFTs) also play a big part. Players can use them to acquire exclusive game skins and other in-game assets. More importantly, players can trade these assets for cryptos and real money in digital marketplaces. NFTs are native to blockchains, and it would be impossible to include them in this market without such technology.    

Potential Risks

Despite cryptocurrencies’ convenience and improved security, crypto gambling isn’t risk-free. Indeed, crypto gambling is a largely unregulated activity, which means there are many scammers around and even fraudulent platforms.  These platforms rarely use misleading or downright false advertising to attract new players. So, they better watch out for their safety.

Additionally, crypto assets like Bitcoins are innately volatile. It means that a market slump (and it happens quite often) could bring nasty surprises for players and operators. It may be very difficult to break into a blockchain system, but it’s not impossible, let alone unprecedented. As it turns out, adopting blockchain-based systems isn’t enough to deter hackers. 

Earlier this year, the high-profile crypto broker ByBit suffered a massive cyberattack. Criminals managed to steal about USD 160 million worth of Ethereum tokens, and it is not possible to recover them. So, crypto gambling sites must also invest in further security measures, but it’s still up to players to find out whether their chosen platforms have all the ducks in a row. It includes verifying operating licenses, security systems, user reviews, and other information regarding gambling sites.  

The Next Rounds

The metaverse is still an abstract concept to many, but not for tech-savvy crypto gamblers. For once, engaging with it requires VR/AR headsets, which not everybody has. Last year, there were about 600 million users in the metaverse, which pales in comparison to regular internet users. The metaverse may be small yet, but its potential is not. 

For starters, crypto operations are the norm in the metaverse, but that’s not even the best part. It’s possible to create immersive digital venues where even live concerts can happen. There’s no need to imagine how this could be applied to esports; it has already been done. 

Those who had a VR/AR headset back in 2020, physical attendees, and fans watching live broadcasts could have watched the LoL World Championship Final with XR (extended reality) features powered by Riot Games. Such events will likely become more common as VR/AR devices become more affordable.

New Tokenomic Dynamics Can Benefit Players 

The development of new tokenomics dynamics is also bound to happen. Esports players and enthusiasts can benefit a lot from it. Outside of glamorous esports competitions, players can enjoy play-to-earn games and be rewarded according to their achievements and level of engagement. Platforms dedicated to play-to-earn games already exist, but this model will likely be incorporated into esports competitions.  

When it comes to esports, many people immediately think about top-flight games like League of Legends, Counter-Strike, and Dota 2. While those games are widely popular, there’s space for less traveled options, such as indie games like Brawhalla. The number of indie games that can be considered esports is still small but growing. Games like League of Legends or Counter-Strike can take years to develop; indie games can be created on the double and face much less bureaucracy.

The main difference between indie games and esports is that indie games tend to be simpler, requiring less skill. In other words, they are less challenging, which makes them less competitive. However, they don’t have to be simple. As the esports market rises, indie developers get more motivated to develop complex games, both in gameplay and structure, including features like blockchain and cryptocurrencies.    

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