Why is Esports Wagering Below 1% in Most Places?

Over the past decade, esports has seen an explosion in popularity and growth, with millions of people tuning in to watch professional players compete in video games such as League of Legends, Fortnite, and Overwatch. While this growth has been impressive, there is one area where esports has struggled to gain traction: betting.

Unlike traditional sports such as football or basketball, where betting has been a part of the culture for decades, esports betting is still in its infancy. According to a report by research firm Newzoo, only 6% of esports fans engage in any form of betting, and less than 1% of all sports betting is on esports.

One possible explanation for this low level of engagement is the behavior of people who play video games. While many gamers are enthusiastic about watching and following esports, they may not be as keen to bet on others' performances. Instead, they prefer to bet on themselves.

For many gamers, the act of playing video games is a form of self-expression and self-improvement. They enjoy the challenge of improving their skills, mastering new techniques, and pushing themselves to be their best. Betting on someone else's performance takes away from this sense of self-improvement and turns the act of playing into a game of chance, much like a slot machine.

This is especially true for younger generations, such as Gen-Z and Millennials, who have grown up with video games as a part of their daily lives. These generations are less likely to engage in traditional forms of gambling, such as slot machines or sports betting, and are more interested in activities that offer a sense of personal agency and control.

This preference for personal agency is also reflected in esports' rise. Unlike traditional sports, where success is often determined by factors such as genetics, size, and athleticism, esports success is largely determined by skill and strategy. This means that players can improve their chances of winning through practice and dedication, which appeals to the sense of agency and control that many gamers value.

Overall, the low percentage of wagers placed on esports is likely due to a combination of factors, including the behavior of people who play video games and the changing attitudes of younger generations toward gambling. While esports betting may continue to grow in popularity, it will need to find ways to appeal to these audiences if it hopes to take off truly. That is why P2P or peer-to-peer wagering is currently the best direction for a younger demographic. Some companies already practice this form of engagement and are generating revenues. Some have been around for over ten years. They are not regulated because they play in the area of skill. From what I can tell, the gambling industry wants no part of it at the moment and the truth is the gambling industry will lose this business because it has already been running and will become mainstream outside their purview.