In recent years, sports wagers have evolved from the traditional sportsbook house in neighborhoods, to online sports betting and now through esports betting. As a result of this evolution, many players and bettors have started flocking in. When there’s a multitude of people in any market, there are different innovative strategies that are bound to be discovered. In the world of sports and esports betting, arbitrage is one strategy to take advantage of.
With the ongoing COVID-19 pandemic, different industries have been affected. Mandatory stay-at-home orders are enforced for people, schools, and businesses to work within the digital space. Unfortunately for some, there’s simply no alternative.
Businesses in the entertainment hotspots such as Macau are quiet in this wave of the global pandemic. Traditional sports events have been brought to a stop almost globally to avoid large gatherings of people, unclear when these events will resume again. For sports bettors, this means lost opportunities. Luckily, esports is here to stay.
Esports is more than just a buzz now and has gained increasing attention than ever before. Popular games such as Counter-Strike: Global Offensive (CS:GO) and Rocket League have broken each of their player records, and streaming platforms such as Twitch, Youtube, and even Facebook have seen a sizable increase in viewership, ESI reported. This esports market is no longer just an accessory, but is becoming more of a necessity during this unprecedented time.
The growing esports market
Wagering on esports is not a new concept and has grown alongside the evolution of the sport itself. The global esports betting market is forecasted to reach a whopping US$14 billion by the end of 2020. Esports in the betting market has grown much more than just a buzz, and the current esports market is gaining momentum.
For first time bettors, popular esports titles can be challenging to understand. The trio is usually referred to as the “big three”: CS:GO, League of Legends, and Dota 2. According to Narus Advisors and Eilers & Krejcik Gaming, these three titles have a combined account for 85 percent of the esports betting handles.
“For second-tier esports titles such as Rocket League, FIFA, F1 Esports, and Call of Duty, these gaming platforms have seen an increase in traffic of over 200 percent throughout their platform over the past months”, says Tom Wade, Chief Executive Officer of SickOdds, an esports betting comparison site. This increased traffic acts as a catalyst into esports, and the wagers come with it.
The increasing number of esports betting operators have opened up opportunities to increase profitability in sports betting through the use of arbitrage trading.
Profitability opportunities through arbitrage
Arbitrage betting is the strategy of placing bets on every possible outcome of an event, with a goal to profit in the end. A simple example of this technique can be seen in the case of a football match, which usually has three possible outcomes: win, draw, or lose. With arbitrage betting, you will have to place a bet on all possibilities to increase the degree of profit at the end of the game.
“To increase chances of profitability, bettors commonly put their wagers on multiple outcomes,” says Tony Jackson, Chief Executive Officer of Jubilee Ace, an automated arbitrage trading platform for commodities, digital assets and esports. The reason behind this trick is that bookmakers always set their odds to balance out. and putting all bets in one basket virtually guarantees a loss.
The flourishing growth of the esports betting industry has brought about several opportunities for everyone. It is becoming an avenue for esports bettors to grow their portfolio amidst the current situation along with new business opportunities for sports wager operators. “With the increasing number of esports betters, arbitrage continues to be a viable strategy for enhancing market liquidity,” Jackson added. This can only mean increased profitability for traders and bettors in the esports market.