What Is Esports Betting?

The year was 2010. One sportsbook decided to try something different: offer odds on the legacy esports title StarCraft II and see if anyone showed interest. Clearly, the fans showed up.
And then more came. And then more. From there, the interest grew exponentially.

And, as they say, the rest is esports betting history.

From that one little experiment, esports has now become a multi-billion dollar industry with $2.5 billion in revenue and over 74 million people participating in online esports betting during 2024 (Statista, 2024).

This is where it’s important to note: esports has some differences compared to traditional sports. The pace is faster, the data infrastructure is more complex, and the audience is highly informed about the titles they follow—they have no patience for stale odds, limited markets, or basic interfaces. For sportsbook operators evaluating whether to enter this vertical or expand their existing coverage, understanding the full scope of esports betting is the difference between a profitable product and a cost center.

What esports betting means for operators

By definition: esports betting is wagering on competitive video game matches and tournaments. But that formal definition misses the operational reality. For a sportsbook operator or platform provider, esports betting means having a product that can deliver real-time odds on matches where game states are highly volatile—changing every few seconds, player rosters shift regularly, and in-house traders must have deep understanding of multiple game titles if they’re going to be successful.

At face value, the core betting structure is not that different from traditional sports. Bettors place wagers on match outcomes, and other markets like handicaps, totals, and, lately, increasingly granular prop markets. But look a little closer and you’ll see a greater difference. A League of Legends match might offer 40+ markets—options like first blood, first turret, total kills, map winner, and penta kills. A Counter-Strike 2 match has its own set of markets: round winners, player kills, pistol round results.

So, while the similarity is there, it’s the depth where the vertical diverge.

Then there’s the value of esports betting.

The esports betting market generated approximately $14 billion in global handle in 2023, with most of that coming from Tier-1 titles like LoL, CS2, and Dota 2. Growth is steady but uneven. The Oddin.gg 2025 Esports Betting Report shows that while overall performance used to be the most important metric, as the industry matures, the drivers of success for each title is different.

Differences can also be seen on regional levels. Asian markets show significantly higher engagement rates than European, and Europe is still far ahead of North America. At the same time, esports betting in Brazil and LatAm are on a fast upward trajectory.

What separates successful esports betting operations from failed experiments isn't the decision to offer the product. It's the infrastructure and data strategy behind it.

Why esports betting breaks traditional trading models

Most sportsbooks getting started in esports adapt their existing sports trading infrastructure to the new vertical. Unfortunately, this is where many get into trouble quickly.

Traditional sports run on fixed schedules with clear start times for each game or match. Esports tournaments, on the other hand, run continuously, often for 10-12 hours a day over the course of days or weeks, with matches starting soon after the previous one ends—without having a set time.

The standard trader process doesn’t work here. Traders can't just set odds at 9 AM and monitor until match time. They need systems that adjust for scheduling volatility.

Then there’s the pace at which odds need to be adjusted. A football match might see 3 or 4 significant odds adjustments per half. A League of Legends match can require 15-20 adjustments in just 10 minutes. Manual trading can't keep pace. And latency, even just a few seconds, can cost an operator money as sharp bettors exploit the delay.

As mentioned earlier, roster changes are common. In traditional sports, changes in the lineup are announced in plenty of time for adjustments. In esports, a player can announce an hour before a match that they can’t play. In some cases, esports rosters can even change between maps in a series. In both cases, the odds shift dramatically and with minimal notice.

Operators who succeed in esports betting either build specialized trading teams for the vertical or partner with providers who handle odds and risk management. For tier-2 and tier-3 sportsbooks, the latter is generally the better option, considering the infrastructure investment for in-house esports trading doesn't generally pay off until you're processing a significant daily handle.

What operators need to launch esports betting

At a minimum, operators need three things to launch esports: 

1. Real-time data feeds
2. Algorithmic odds generation
3. Risk management tools that are built for esports-specific variables

Data feeds must deliver match results, in-game events, and player statistics with sub-second latency. Anything slower exposes the sportsbook to risk. The feed also needs to cover tournament schedules, team rosters, and format details—whether it’s best-of-one or best-of-three, the format impacts handicapping.

Odds generation needs to be automated for fast-paced in-play markets. Pre-match odds can be set manually by experienced traders, but once the match starts, real-time pricing adjustments are non-negotiable. The models must be able to factor in real-time game state, historical performance data, and current betting patterns to maintain balanced books.

Risk management tools should include exposure limits by match and by tournament—with coverage based on the risk assessment, automated bet acceptance rules based on liquidity, and alert systems to immediately warn of unusual betting patterns. Esports attracts more match-fixing attempts than most traditional sports, particularly in tier-2 and tier-3 competitions. Operators need monitoring systems that flag suspicious line movements or concentrated sharp action.

The business case for adding esports betting

For starters, given that esports tends to appeal to a younger, digitally native demographic—think Millennial and GenZ—it opens a sportsbook up to a higher lifetime customer value and long-term business success. The average esports bettor is 24-35, mobile-first, and often get their start in betting with esports. For operators who are looking to expand their user base beyond core sports bettors, esports provides an easier acquisition channel.

Margin profiles in esports also differ from traditional sports. Esports betting typically carries tighter margins due to a customer base who is highly informed about the play, but, at the same time, handle growth can offset the tighter margin—if the product is managed properly.

Retention rates for esports bettors vary significantly by operator. Sportsbooks that treat esports as an afterthought—limited markets, slow odds updates, poor mobile experience—risk high churn. On the other hand, operators who invest in the vertical report retention that is more comparable to traditional sports.

The decision to launch esports betting ultimately depends on your business goals and strategy. If your player base skews under 40 and you're in a market where esports viewership is established (Europe, Asia, parts of North America), the vertical makes sense. Some even say it’s a must-have. If your core demographic is older and sports-focused, esports may not be able to tip the scale enough to justify it—but, at the same time, an older demographic is likely to age out soon, leading to reduced handle.

What separates a basic esports offering from a competitive one

A growing number of sportsbooks offer esports betting today. Few, though, do it well enough to generate meaningful handle or player engagement.

A basic offering may cover 2-3 titles with pre-match markets and maybe one other one of interest. In these cases, odds are likely to update slowly, in-play markets are limited, and the product feels like an afterthought retrofitted from a traditional sportsbook. This is the one that is likely to struggle and get rid of esports.

A competitive offering covers 5-8 tier-1 games with deep market variety (including player props), fast in-play odds adjusted in real-time, mobile-optimized interface, and data layers and titles to increase engagement.

Operators often underestimate how much the presentation layer matters for esports. This is a group that thinks fast, moves fast, and wants every bit of information available to them to make educated bets with confidence. They also look for personalization. A good platform will allow them to customize bet combinations with odds adjusting in real time.

The gap between basic and competitive typically comes down to whether the operator views esports as a compliance checkbox ("we offer it so we can say we do") or as a genuine vertical worth investing in. The former rarely generates ROI. The latter can become a differentiation point in crowded markets.

What comes next for esports betting operators

Esports betting isn't a static product. New titles emerge, bettor behavior changes, tournament structures evolve, and regulatory frameworks continue to take shape. Operators who succeed are the ones who treat esports as a vertical requiring ongoing attention, not a one-time product launch.

For operators still evaluating whether to enter esports betting or expand their current offering, the core question isn't whether esports betting is viable. It's whether your organization has the infrastructure, expertise, and commitment to do it well enough for it to succeed. Half-measures in esports betting produce half-results. Done properly, it's a vertical that can differentiate your sportsbook and tap into demographics that traditional sports struggle to reach.

FAQ

What games do most sportsbooks offer for esports betting?
Most sportsbooks focus on League of Legends, CS2 (Counter-Strike 2), Dota 2, and VALORANT as their core esports betting offerings. These games generate the highest betting volume and have the most reliable data feeds. Recently, Mobile Legends: Bang Bang is showing a rise in performance and popularity.

Is esports betting profitable for sportsbook operators?
Esports betting can be profitable but typically runs on tighter margins (4-6%) compared to traditional sports due to more informed bettors. Profitability depends heavily on having proper infrastructure: automated odds, fast data feeds, and strong risk management. Operators who treat esports as an afterthought usually see losses, while those who invest properly report handle growth that offsets the margin compression.

Do I need specialized traders to offer esports betting?
Yes, but the level of specialization depends on your approach. Most tier-2 operators partner with esports data providers who handle odds generation, reducing the need for deep in-house expertise. At minimum, your team needs enough knowledge to monitor risk and identify unusual betting patterns.