Esports Betting - South America | Statista Market Forecast

In South America, revenue in the Esports Betting market market is projected to reach US$134.2m in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 6.33%, resulting in a projected market volume of US$182.4m by 2029.
While most revenue is generated the United States, in South America is also witnessing significant developments in this sector.
The average revenue per user (ARPU) in South America is expected to amount to US$15.0.
In South America, the burgeoning interest in esports is increasingly reflected in the expanding landscape of esports betting, attracting both local and international operators.

Definition:

Esports betting refers to the act of placing wagers on competitive video gaming events. It involves predicting the outcomes of Esports matches or tournaments and placing bets on various aspects, such as the winning team, individual player performances, or specific in-game events. Esports betting has gained significant popularity, with dedicated platforms and bookmakers offering odds and opportunities for enthusiasts to engage in this form of gambling related to the rapidly growing Esports industry.

Additional information:

Data includes revenue figures in Gross Gambling Revenue (GGR), which is the total amount of bets placed by customers minus the amount paid out in winnings, Users, average revenue per user (ARPU), user penetration rate, and a breakdown of revenue shares of the total betting market. User and revenue figures represent B2C services.

Online betting on the outcome of various Esports matches in games such as League of Legends, Dota 2, CS:GO, etc.
Betting on the overall winners of Esports tournaments in games such as the Dota 2 International or the League of Legends World Championship
Betting on specific events or outcomes in an Esports game, such as the first team to score, the number of kills a player will get, or the length of a match

Online betting on non-Esports related sports, such as football or tennis matches
Offline betting on Esports, such as betting in a physical store

The eSports market in South America is seeing mild growth due to factors such as the increasing popularity of online gaming, rising interest in competitive gaming among consumers, and the convenience of eSports betting services. This market is expected to continue its steady growth in the coming years.

Customer preferences: The eSports betting market in South America has experienced a significant increase in popularity, driven by a growing trend of online gaming and a rise in disposable income among the younger generation. This shift towards digital entertainment has also led to a surge in demand for virtual and augmented reality technologies in the eSports market, as consumers seek more immersive and interactive experiences. Moreover, the rise of mobile gaming and streaming platforms has transformed the way audiences engage with eSports events, with a preference for on-the-go and easily accessible content.

Trends in the market: In South America, the Esports Betting market is experiencing a surge in popularity, with a growing number of players and viewers. This trend is driven by the region's large and tech-savvy youth population, as well as the increasing availability of high-speed internet and mobile devices. As a result, major global Esports tournaments are now being held in South America, attracting top players and generating significant revenue. This trend is significant for industry stakeholders as it presents new opportunities for partnerships and sponsorships, while also increasing the demand for Esports betting platforms. However, it also raises concerns about potential gambling addiction and the need for responsible gambling practices. As the trend continues to grow, it will be important for industry stakeholders to monitor its trajectory and adapt accordingly to ensure the sustainable growth of the Esports Betting market in South America.

Local special circumstances: In South America, the Esports Betting market is heavily influenced by the region's love for traditional sports, particularly soccer. This has led to a strong fanbase for esports, with tournaments and events drawing in large crowds. Additionally, the lack of strict regulations in some countries, such as Brazil and Argentina, has allowed for the growth of online betting platforms. This, coupled with the high internet penetration rates in countries like Chile and Uruguay, has created a lucrative market for esports betting in the region.

Underlying macroeconomic factors: The Esports Betting Market in South America is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and other financial indicators. Countries with strong and stable economies, as well as supportive regulatory environments, are experiencing faster market growth compared to those with economic challenges and limited regulatory support. Moreover, the increasing popularity of Esports in the region, coupled with the rise of online betting platforms, is contributing to the growth of the Esports Betting Market. Additionally, the growing disposable income and technological advancements in the region are further driving the demand for Esports Betting services.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports betting market, which comprises revenues from online betting on Esports events. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

The rapidly growing phenomenon surrounding eSports continues to gather steam. The intersection of gaming and sports offers an innovative wave of branding opportunities, engaging content and activations for millions across the world. It therefore comes as no surprise that the size of the global eSports market is expected to increase more than fivefold between 2023 and 2032, reaching a value of over 10 billion U.S. dollars within the next ten years.