Esports are video games played in a highly organized competitive environment. Sportsbooks are increasingly using esports betting to win over millennial and Gen Z audiences. Those that actively embrace it are laying a foundation for long-term engagement with younger audiences.
The legality of esports betting
Esports betting is now included in online sports betting in many US states where sports betting is legal. Some states have specifically legalized esports betting, while others have outlawed it. For example, it is legal in Colorado and Kansas and prohibited in Delaware and Indiana. A state may permit esports betting, but an individual sportsbook still decides which events to offer markets on. Some jurisdictions require approval for specific events.
Esports bets
Esports betting follows similar principles to traditional sports betting, offering a range of markets and live betting opportunities on popular game titles. These popular titles have professional leagues and a global audience. Like traditional sports betting, common bet types include wagering on a match winner or an overall tournament winner. Handicap betting evenly adjusts teams through modifying virtual points to ensure fair competition. Players can also predict which team will be victorious in a specific match or round combination during a match.
As in traditional sports betting, players who want to improve their betting strategies will research teams and players. They often follow star players, which is driving the demand for player prop bets, where bettors can wager on individual statistics such as how many points a player will score in a match.
A new generation of sports bettors
Esports offers a more dynamic and interactive experience than traditional sports for younger audiences. They want to interact on their own terms and expect fast and personalized content. Youngsters are used to multitasking on platforms like YouTube and Twitch.
The type of betting experience they expect is more like gaming than traditional sports betting. Those with gaming skills don’t want just to watch and listen – they want an interactive experience. They want personalized, quick-fire bets on esports rather than traditional team outcomes.
Categories of esports betting
The rise of esports betting began with skins betting, where wagers were placed using in-game skins, often on unregulated websites. The ‘skins’ or game-specific items were currency. No U.S. state has authorized skin betting sites to operate.
In standard esports betting, bettors place wagers on match outcomes with real money, just as spectators bet on the result of a football game. Standard esports betting has the greatest potential for growth, as this is where the demand is highest. Licensed online betting operators are increasingly interested in this type of esports betting.
Many US states allow fantasy esports contests. This is because they aren’t classified under sports betting but as fantasy sports content.
Today, sportsbooks must offer young esports bettors more control and personalization. They want to be able to shape their bets based on their knowledge and style of play.
Why esports suit this new generation
Esports move fast and reward in-depth knowledge. Titles such as League of Legends and Dota 2 offer almost constant action with many events running across time zones and regions. The structure of esports aligns with what the new generation expects, with its short rounds and real-time play.
Esports isn’t just a sport for these players but is part of their identity. Titles are easily accessible on mobile devices and offer an interactive and social experience. Viewers can chat in real time with other fans, which creates a strong sense of community and shared identity.
Esports is all about communication and teamwork. Younger players who participate in esports can learn essential collaborative skills. They must strategize and adapt under pressure. This is similar to traditional sports, where teamwork is often the key to victory, and 2026 in sports is likely to be an exciting year.
The number of viewers for esports championship finals can range from six to nine million, surpassing many traditional sports broadcasts. These are the kinds of signals that cause sportsbooks to pay attention. Betting volume across top-tier titles is growing steadily.