Industry

Bloomberg has cited a few cases of esports corruption, suggestion that esports is experiencing a much bigger issue

The esports betting market is expected to hit $13 billion in 2020, one study suggests

Despite accusations of corruption, mainstream esports seems to be safe from nefarious third parties looking for a quick buck

Bloomberg published an article on Friday, April 24, hinting that esports corruption – both illegal gambling and match-fixing – is rampant. Is that true?

Esports and Match-Fixing: Truth or Myth?

In a recent article published on Bloomberg, Stefan Nicola argues that there is more to esports than the large sponsorships between famous brands and established esports powerhouses.

In Victoria, Australia, the police arrested six alleged Counter-Strike: Global Offensive cheaters for match fixing back in August, 2019, threatening the players with up to 10 years in prison.

This has been the first case that reported esports cheaters have faced with real-world consequences, quickly thinning the line between what is real and what isn’t.

With industry participants signing multi-million partnerships and a single slot in the Overwatch League (OWL) reportedly costing $35 million, it’s understandable why attempts to fix games could have legal repercussions.

Esports – Where Rampant Corruption Thrives

The author claims that corruption is already rampant and that illegal gambling markets are thriving, despite a number of established betting sites already offering odds and fixtures legally. In Nevada, the Gaming Control Board has permitted esports bets on multiple competitions, responding to the almost complete shutdown of sports events around the world.

Traditional sporting organizations (and sports), such as the NBA, NHL, NFL, soccer, NASCAR and F1 have all switched to electronic sports, exciting a fair bit of interest.

Betting markets for MLB and NBA games are actually running every day, with traditional sports fans reluctantly making a shift towards esports – or, in the very least, entertaining the idea a little more readily these days.

26% of traditional sports bettors already bet on esports

In light of these growing concerns about the integrity of esports, a regulatory body has already been established – the Esports Integrity Commission (ESIC). Stephen Hanna, the Australian director for the Commission, has testily shared his sentiments that he wouldn’t rest until illegal betting and match fixing have been eliminated.

“It’s about limiting its position in the market to the greatest extent possible,” Hanna said.

The Esports Betting Market to Hit $13 Billion in 2019

The real value of the esports betting market, though, is taking on new highs. Based on a report by Eilers & Krejcik Gaming and advisers Narus, the esports betting market should reach $13 billion this year, from merely $5.5 billion in 2016.

Based on another report, by Zion Market Research, the size of the sports betting market is worth around $135 billion yearly.

While some brands have been around esports for a while now, to wit Betway and Pinnacle, other behemoths are only now stretching their legs. William Hill is happily chugging CS:GO and Dota 2 fixtures away in Nevada and sportsbooks elsewhere are patiently bidding their time.

FIFA which now generates 70% of all esports betting handle.

Not everyone is entirely certain about the potential of esports. In a recent interview for Esports Insider, a company that owns gambling affiliates and specifically SBC, EveryMatrix Head of Product Development Sportsbook Malte Hegeler commented on the rise of FIFA and NBA esports betting.

Hegeler shared some interesting figures, arguing that before the novel coronavirus had forced every sports to come to a halt, CS:GO accounted for around 50% of all esports betting handle.

After the suspension of mainstream sports, this percentage has shifted heavily in favor of FIFA which now generates 70% of all esports betting handle. Put another way, traditional sports fans may have taken esports quite seriously.

In fact, 26% of traditional sports bettors already bet on esports – many have placed their first bet in the past month, and around 30-40% expect to continue betting on esports in three months’ time.

Little Evidence of Rampant Corruption

Outside the gambling market with skins, which was hit in 2016, esports don’t quite yet have a problem with match-fixing on the same level as sports competitions.

While some games, such as Counter-Strike, may spawn their own breed of players who are happy to use dishonest means to secure a victory, this has not yet been the case in Overwatch, Dota 2 or League of Legends – at least not on the very top of the game.

ESIC’s Hanna has argued that more needs to be done, cited by Bloomberg, but while illegal betting and perhaps some form of cheating might persist, and esports is yet to address the issue – or experience it in the same degree as traditional sports – there is little suggest that corruption is rampant in electronic sports.

True, games such as Valorant and Call of Duty, and even Fortnite, have had their experience with cheaters, but never on a competitive level. Meanwhile, ESIC has over 24 members today.