This story first appeared in the Summer 2025 issue of Canadian Gaming Business magazine.
By Kieran O’Connor
Esports is no longer just a niche corner of the internet. It has evolved into a cultural juggernaut, reshaping not only sports and entertainment but also the betting industry.
What was once viewed as a subculture of avid gamers has become a global phenomenon with millions of fans, players and growing revenues.
According to Business Research Insights, the global esports betting market size was approximately $510 million USD in 2024 and is projected to grow to $2.41 billion USD by 2033. North America is set to play a significant role in this growth, acting as the base for some of the most influential organisations, companies and operators to maximize this forecasted growth.
These industry stakeholders are now working together more closely than ever, as esports and betting expert Cody Luongo told Canadian Gaming Business.
“Esports went through a period of right-sizing the last two or so years, and we’re now seeing closer collaboration happening between game publishers, teams, and event operators who are partnering to grow the industry in a more sustainable manner,” Luongo said.
While COVID-19 paused many sports globally, esports kept playing. With traditional sports sidelined, fans flocked to digital arenas, driving a meteoric rise in the sector. However, as the world returned to normal, that rapid growth couldn’t be fully sustained, leaving many organizations to feel the brunt of the impact.
What doesn’t kill you makes you stronger
Luongo explains that while the esports industry came to terms with profitability concerns, gaming consumption “never slowed down,” adding that it continues to be the preferred form of entertainment for many millennials and the majority of Gen Z.
Moritz Maurer, CEO of GRID Esports, echoes this perspective, telling Canadian Gaming Business that titles such as VALORANT and R6Siege are driving the competitive ecosystem and attracting new fans and players.
GRID added Riot Games, the developer of VALORANT, to its partnership portfolio in late 2023. The deal allowed the data provider to deliver official, real-time in-game data, which is essential for operators.
In addition to this agreement, Riot Games also made headlines after it announced esports organisations would be allowed to partner with gambling companies. Luongo says that development was seen as a “big deal” for stakeholders, especially given that Riot Games is often viewed to be on the conservative end of the betting spectrum.
The impact of this announcement is far-reaching, providing teams with vital funding, enhanced visibility, and betting propositions helping to boost viewership, engagement and content creation within esports, much like it does in traditional sports.
Sustaining a mainstream push
Esports is gradually shaking off the “not a real sport” stereotype as it gains wider acceptance, especially as generations more accustomed to the sector grow older. However, traditional sportsbooks remain hesitant, with many stakeholders still “missing the forest for the trees,” as Luongo puts it.
While esports as a standalone market may seem small compared to traditional sports and casino betting, Luongo believes its role in a broader sportsbook offering is crucial.
“As these digitally native consumers make up a larger portion of the market, esports will become more of a necessity than an accessory.”
GRID plays a key role in helping esports transition into more mainstream markets, with Maurer describing data as “the fuel of betting markets.”
The company’s mission is to make esports as bettable and accessible as any traditional sport. However, Maurer acknowledges there are challenges, particularly when it comes to integrating esports into existing platforms. “Esports titles differ from traditional sports, and educating both the operator and the end user is a crucial part of making the experience intuitive.”
The GRID CEO highlights how data can help overcome these hurdles, describing data as “the connective tissue between the game and the audience.”
As traditional sportsbooks continue to test the waters of esports, a new wave of digital-first operators is stepping in to seize the opportunity. These upstarts are targeting a different kind of bettor; one who, according to Luongo, has “very different entertainment and consumption habits from the conventional sports bettor who is now in their 40s or 50s.”
A natural fit for modern betting
With this new audience in mind, some leading esports operators have shifted their marketing away from traditional mass media to platforms where these new digital-native consumers.
“On one hand, you have viral-engineered marketing and stunts that can permeate quickly and far across channels like X,” Luongo explains. “On the other, Discord and Telegram are being used to build loyal and engaged communities as a two-way communication channel.
“This is a space where player value is absolutely critical. Consumers have a near limitless amount of sportsbooks to choose from, so finding ways to reward them — either through community-building efforts or new technologies — can create major competitive advantages.”
“The opportunity in this segment is larger than the actual size of the market today.”
This community-first mindset isn’t just a marketing tactic; it reflects a growing belief among digital-first operators that success in esports betting hinges on more than just odds and outcomes. It’s about delivering a cohesive experience tailored to an audience with different expectations and behaviours.
“The point is that finding the value in esports partially relies on delivering the full experience across product, marketing, and brand,” says Luongo. “And, importantly, that the opportunity in this segment is larger than the actual size of the market today.”
Maurer also believes the future is bright, suggesting that esports games are naturally attractive to the emerging, new betting audience that oftentimes eludes bookmakers across established channels.
With regulatory momentum building and infrastructure maturing, he says, “esports is becoming a natural and permanent extension of the global betting landscape.”
