eSports
How Esports Companies Can Address The Confusion Around Gambling
An exclusive Q&A w/ Gary Denham, Founder and CEO of Wamba Technologies and Gamer’s Oasis
What inspired you to found Wamba Technologies and develop the patented esports platform, Gamers Oasis?
My motivation was the void of wholly accessible online gaming competitions. Wamba Technologies, in conjunction with Gamers Oasis, aims to create a platform where gamers can engage in fair and constant competition, free from any suspicions of impropriety, while winning money as a result of their performance. Basically, players will be able to pay an entry fee into an online competition, compete, and win money back if they place well enough in the competition.
Could you elaborate on why the misconception of esports as a form of gambling exists despite the legal framework distinguishing skill-based competitions from games of chance?
This misperception arises from the similarities between online esports competitions and traditional gambling activities, particularly where participants are paying an entry fee and vying for monetary rewards. However, at the most basic level, it comes from industry ignorance.
Anyone who has actually looked at this or participated in esports knows this is no different than tennis, golf, NASCAR, motocross, etc. This just happens to take place online. Aside from that, there is really no difference.
In your recent Forbes article, you draw parallels between online video game competitions and the financial structure of online poker. How do you see this comparison influencing the perception of esports within the regulatory landscape?
This comparison sought to underscore the potential revenue from esports while addressing any misunderstandings regarding its classification as gambling. By framing esports within a recognizable regulatory context and emphasizing its skill-based nature, the intent was to facilitate clearer guidelines and regulations conducive to industry growth. Beyond that, I also wanted to illustrate just how much untapped financial potential exists in the industry, which I aim to capitalize on with Gamers Oasis.
How do you think the historical context of online poker and its impact on the perception of online gambling influences the current discourse surrounding esports and its legal classification?
The confusion and misconceptions stemming from the past have contributed to the ongoing debate over whether esports should be deemed a form of gambling, despite its inherent emphasis on skill. Here is where it becomes very clear: remove the internet from the equation and consider the question again.
Has anybody looked at “real life” video game competitions as “gambling” in the last 40 years (aside from Las Vegas trying to get their hands on it, and failing)? Of course not. So why would featuring the same exact competitions on the internet suddenly somehow magically make this gambling?
It doesn’t. Ergo, this is CLEARLY not gambling.
What measures do you believe are necessary to establish clear guidelines and regulations for esports, ensuring both consumer protection and industry growth?
Nothing governmental. I think where esports are concerned, regulators need to stay out of it.
Will they? Only time will tell — but we don’t regulate golf, NASCAR, tennis, or any other sports. Sure, they each have their own rulemaking bodies, but those are not governmental entities, nor should they be.
I think that to make an exception for esports would set an extremely dangerous precedent and open up all sports to such regulatory oversight. Quite frankly, the day I see the government actually make something in corporate America better, I may be willing to revisit this sentiment. Until then….
How much of the gaming population do you expect to be interested in a platform like Gamers Oasis?
With approximately 660 million actual and potential esports players globally, I expect a significant portion of the gaming population to be interested in a platform like Gamers Oasis. Hundreds of millions of players are traveling to various locations to participate in competitions already.
To give them the ability to simply access this from the convenience and comfort of their own home is something that has gone over exceedingly well in all other comparable situations which we’ve seen. Banking. Shopping. Poker. Collectibles. Multiplayer, casual gaming. Now we’ll see it with video game competition.
What can you share about monetization issues in esports and how Gamers Oasis plans to tackle the problem?
Monetization challenges in esports often stem from an attempt to mirror the traditional sports’ viewer-based model, where money is made by bringing fans out to stadiums or by encouraging them to buy merchandise. In this model, revenue comes from ad sales and sponsorships in addition to gate sales and merchandising.
While that works with traditional sports, it doesn’t translate well to esports. However, with the ease of access to gaming reaching an exponentially larger number of players than traditional sports reaches viewers (basically, not everyone can throw a baseball, but 40% of earth’s population plays video games), focusing on a player-based model that encourages everyone to participate, rather than merely making them a viewer, can produce far greater emotional attachment to the sport resulting in more participation time, more monetization opportunities in general, and ultimately, as a result, more revenue. Simply put, viewers generate some revenue for the sport, but players can be worth much much more than viewers. In video games, every viewer is a potential player, so, let’s make them players!
This is where Gamers Oasis will shine. We are developing technology that will allow players of all skill levels to compete and to know that they are engaging in fair competition. Basically, you could be a bad player, but know that you will only be competing against other bad players, giving you a real chance to win money. This is something that nobody else has seemed to be able to produce in a meaningful manner. We have a way to do this and to ensure this fair play. When anyone can win, all will play. When everyone is playing, the industry experiences exponential growth.
Looking toward the future, what do you see as the future of esports, more specifically in terms of regulatory frameworks and industry development?
One of the fundamental problems esports has had up until now is there is no universal set of guidelines. As I said before, I firmly believe that the government is not the answer.
With our patent, one of the things we intend to do is to have all parties who are licensing the patent join us in setting up core guidelines for all games which feature our technology. We see this as a sort of a start in creating that centralized entity which can help establish and enforce certain guidelines, keeping it as a consensus based entity composed of the major parties who are involved with us in these endeavors, a democratic approach of sorts, with us primarily facilitating the laying of the foundation.
What kind of a relationship do you envision between the casino industry and the esports industry?
Casinos are all about entertainment, and esports bring a whole new level of that to their customers. The possibilities are exciting in that whole new esport-themed experiences can be hosted within casinos. And as casinos seek to diversify their offerings to attract younger demographics, esports present a lucrative opportunity for engagement and revenue generation through esports betting and tournaments themselves.
I think that third-party betting should be separated from any true esports platform. A true esports platform should only have the player paying their entry fees and should not involve third parties wagering on the outcome when they are not actually involved in the competition.
This is where the casino industry comes in. The casinos can be a distinct and separate entity to facilitate those kinds of transactions, keeping them wholly separated from the platforms featuring esports.
One of the major reasons for this separation is age requirements. A true esports platform should allow kids (with parental permission) to be allowed to compete just as they do in real life. However, I feel very strongly that wagering on anything as a non-participant should have some restrictions, as it has the means to cause harm to younger, developing minds. By separating the two, we can keep the competition platforms “kid friendly” while still serving the needs of the audience that seeks the other service.
eSports
FeedConstruct Announces New Partnership with Betinvest
FeedConstruct has announced an innovative new partnership with Betinvest, integrating Betinvest’s exclusive esports and fast sports solutions to enhance FeedConstruct’s innovative Odds Aggregator Platform. Due to this partnership, bettors will now enjoy access to over 30,000 monthly events, expanding their choices with a wide range of unique sports and esports content.
Extending the Fast Sports Options
As part of this collaboration, Betinvest delivers exclusive fast sports solutions to FeedConstruct across several popular sports:
Table Tennis: With the TT EURO.CUP and WINCUP leagues, table tennis fans can now enjoy a constant stream of top-tier events, featuring reliable odds and real-time data.
Short Football: The thrilling Winners Goal Pro Cup offers a fast-paced football format, perfect for bettors seeking quick outcomes.
Beach Volleyball: The Winners beach volleyball series adds vibrant matches to the betting world, attracting the growing fan base of this sport.
Enhancing Esports Betting
Alongside fast sports, Betinvest will bring its extensive esports portfolio to the table. Events like CyberLive!Arena and Esport Pro Club will offer top-tier esports action, complete with rich data, reliable odds and premium live streams. With the esports sector’s growing popularity, the partnership ensures that bettors gain access to high-class tournaments and comprehensive statistics to enhance their betting experience.
The Value of This Partnership
Through its partnership with Betinvest, FeedConstruct’s Odds Aggregation Platform will cover a broader range of events, ensuring an engaging betting experience. In addition, FeedConstruct’s platform offers Betinvest the chance to reach a larger audience, boosting its market presence and visibility.
Odds Aggregation Platform provides extensive coverage with a wide selection of odds from leading providers. What distinguishes FeedConstruct’s platform is its simplicity and efficiency, offering a single point of access to multiple odds providers without the need for complex, individual integrations.
Dmytro Hnoievyi, CEO of Betinvest, said: “As we continue to push the boundaries of innovation at Betinvest, our partnership with FeedConstruct marks a significant milestone. By integrating our exclusive fast sports and esports solutions, we are becoming part of a groundbreaking platform that represents the future of sports betting.
FeedConstruct’s commitment to delivering cutting-edge sports data and streaming solutions aligns perfectly with our vision. Their reliable technology, vast experience, and dedication to accuracy make FeedConstruct an ideal partner for expanding our offering. We will definitely set new standards in sports and esports betting, and we are utterly confident that together we will make it happen. We are excited about the future and the value this partnership brings to the sports betting industry.”
Narek Harutyunyan, CEO at FeedConstruct, said: “It’s a great opportunity to enter into this partnership with Betinvest, an international sports entertainment tech provider. We are confident that this partnership will enhance the sports entertainment experience for audiences worldwide, and we look forward to a successful and dynamic collaboration.”
The post FeedConstruct Announces New Partnership with Betinvest appeared first on European Gaming Industry News.
eSports
IESF Concludes 16th Ordinary General Meeting in Riyadh
The International Esports Federation (IESF) held its 16th Ordinary General Meeting (OGM) on November 18, bringing together over 150 delegates from the member federations in Riyadh, Saudi Arabia.
Before the official start of the assembly, IESF welcomed representatives from the Saudi Olympic & Paralympic Committee (SOPC) and the Esports World Cup Foundation (EWCF). Abdulaziz Baeshin, CEO of SOPC presented Saudi Arabia’s progress in Esports and sports development and their vision moving forward. Frank Weber, Director of Corporate Marketing at EWCF discussed the success of the EWCF and highlight upcoming plans for the future.
In his opening speech, IESF President HRH Prince Faisal bin Bandar bin Sultan Al Saud expressed gratitude for the number of delegates who attended the assembly. He reflected on the federation’s success and achievements over the past year, the key areas for improvement, and the necessity of continued close collaboration among members.
The first session of the assembly continued with reviewing motions submitted by the members and voting on their acceptance or rejection. The members also voted to grant Full Membership status to Canada, Germany, Latvia, and Malta.
The second session of the OGM was dedicated to electing key positions within the IESF Board and committees. The results are:
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Board Member: Mr. Samart Benjamin Assarasakorn
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Treasurer: Mr. Daniel Wen Jun Loy
Membership Committee Members:
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Mr. Soufiane El Filali
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Mr. Jaroslav Melishek
Audit, Risk, and Governance Committee:
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Chair: Mr. Tomas Gabris
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Members: Mr. Jacopo Ierussi and Mr. Stevan Nenad Rosic
Regulatory Committee Chair:
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Mr. Ido Orel Brosh
In his concluding statement, IESF General Secretary Boban Totovski congratulated the assembly on a productive and democratic meeting. He expressed his appreciation for the valuable insights shared by members and their dedication to the growth of the IESF.
“This year’s assembly demonstrated the strength of our community and the shared vision that drives IESF forward. I thank everyone for their contributions to a democratic and smooth process, and I look forward to welcoming more member federations to our family next year and even greater success” said Totovski.
The OGM 2024 in Riyadh was another step forward in IESF’s mission to unite the Esports world under a shared vision. With the growing number of national federations, the IESF continues to cement its role as the largest Esports family.
The post IESF Concludes 16th Ordinary General Meeting in Riyadh appeared first on European Gaming Industry News.
Chad Kinlay Chief Marketing Officer TrafficGuard
Influencers, Content and eSports: Unleashing the Power of Dynamic Strategies in the eSports Ecosystem
The sports betting industry is undergoing significant growth worldwide with restrictions loosening and new markets emerging. New opportunities create fierce competition among sportsbooks, and this has led to them devising increasingly expensive and aggressive advertising campaigns.
Public figures and influencers have become a popular go-to for sportsbooks promotions, such as Michael Jordan partnering with DraftKings or Jamie Foxx with BetMGM. Big names are costly, and sportsbooks haven’t realised the ad spend used on these campaigns is going to waste. Without the right precautions in place, up to 22% of ad spend is lost to fraud according to Juniper Research.
The big budgets behind high-profile brand campaigns need to translate into real user engagement. To achieve this, sportsbooks must ensure their digital channels are optimised to capture the surge in interest these campaigns generate. Without proper management, this potential can be lost to inefficiencies like invalid traffic, diluting the impact of their investments.
Ad Budgets Going to Waste
In today’s competitive landscape, sportsbooks need to make every click count. In 2023 alone, The American Gaming Association estimated that over $1.9 billion was spent on advertising campaigns in the US. With such a large amount of spend in play, it’s crucial that sportsbooks see as big a Return on Advertising Spend (ROAS) as possible.
Pay-Per-Click (PPC) campaigns are vital for sportsbook growth but can be disrupted by invalid traffic (IVT). IVT includes both malicious activity, like fraudulent bots, and unintentional actions, such as users repeatedly clicking on ads without intent to convert. These interactions inflate impressions and skew campaign performance data, leading to higher customer acquisition costs (CACs) and inefficient allocation of ad spend. Effectively managing IVT ensures that ad budgets drive genuine engagement and measurable growth.
Investing into influencers and celebrities also forces sportsbooks to bid on brand keywords to prevent their competitors stealing potential users searching for them. Up to 29% of PPC budgets are spent on this bidding according to Wordstream. As competition for brand keywords increases, PPC budgets are depleted without generating any new net revenue.
As campaigns become more expensive than ever, sportsbooks can’t afford to let profits fall to ad fraud. Instead of cutting budgets, sportsbooks should focus on analysing their campaign strategy.
Problematic Navigational Traffic
Navigational traffic is also presenting a significant challenge to sportsbooks alongside ad fraud. Navigational traffic refers to existing customers clicking on branded keywords to log into their accounts. While this seems convenient and harmless enough, this behaviour drastically inflates CACs. Like ad fraud, this can skew the effectiveness of PPC campaigns. By utilising paid search results instead of organic links to navigate to the site, costs are driven up without contributing to new user acquisition.
In addition to the challenges posed by navigational traffic and ad fraud, the competitive landscape for first-time depositors intensifies the need for strategic bidding on Google search. Brands investing heavily in influencers or sponsorships of major sporting events to generate awareness and drive potential users to search for them. However, without securing top placements in paid search results, these prospective customers may be intercepted by competitors before reaching the organic search listings. This creates a critical juncture where the effectiveness of a brand campaign hinges on converting that intent-driven traffic into first-time depositors, ensuring marketing spend achieves its goal of meaningful user acquisition.
First-time depositors are a critical metric for sportsbooks, and this issue directly impacts the cost efficiency of acquiring them. High CACs make marketing budgets less effective, reducing overall ROI.
Shoring Up Your Defences
Before launching costly ad campaigns, sportsbooks should adopt a multi-faceted approach to address ad fraud. IVT typically goes unnoticed, so to prevent this sportsbooks should monitor and analyse their campaign traffic for any suspicious activity. It is possible to identify IVT by looking out for signs such as irregular spikes in traffic from unknown locations or high pageviews. Fraudulent traffic can then by highlighted and removed.
The advancement of technology has made ad fraud more difficult to identify, and legacy fraud tools fail to detect IVT. They don’t analyse traffic at the impression level or consider the context of the business advertising. Sportsbooks can leverage ad-verification platforms to compensate for this. This allows sportsbooks to analyse and report suspicious traffic in real-time. Fraud can then be blocked before it has a chance to harm budgets.
Sportsbooks can also deploy tactics to reduce the impact of navigational traffic on CACs. Methods include encouraging existing customers to use mobile apps or direct bookmarks to log into their accounts instead of paid search campaigns. This decreases their reliance on PPC campaigns for navigation and protects budgets.
Keeping Profits in Sportsbooks’ Hands
Influencer and celebrity campaigns have proven to be a popular and useful tool in reeling new users and profits. However, if sportsbooks don’t have the essential precautions in place, they risk losing these profits to advertising fraud.
To make the most of their advertising efforts, sportsbooks need to prioritise their traffic. Implementing sophisticated tools to analyse traffic and filter out fraud will allow sportsbooks to protect their interests and focus on driving future growth. This way, they can secure their position in an increasingly competitive landscape.
Written by: Chad Kinlay, Chief Marketing Officer, TrafficGuard
A driven, open-minded, creative senior marketer with a strong sense of dedication and commitment. With over 15 years of progressive international experience in marketing and communications management, Kinlay has a credible history of commercial success.
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