Panel Discussion on Payments, Esports, and Gaming 🕹️

Introduction and Panelists

• Gareth (Neosurf)
  • Dual role: global client relationships (focus on Australia and New Zealand) and developing esports/video gaming strategy.
• Olga (Parimatch Tech)
  • Head of payments with almost 10 years of experience, represents a major gambling comparator connected to esports.
• Dave Harris (Guinevere Capital)
  • Managing Director, invested in esports globally, running the main League of Legends circuit in Oceania, and involved with franchises like London Spitfire in Overwatch.
• Magnus Lepany (Esports Entertainment Group)
  • President of Esports. Company listed on NASDAQ, holds licenses in multiple countries for esports betting.

Esports and Betting

Olga's Insights

• Current Growth
  • Esports has been growing fast but still only makes up 10% of betting compared to traditional sports.
• Audience
  • Younger audience who are actively engaged in betting on their favorite esports games.
  • Growth potential in increasing the betting options on different esports games.

Dave's Insights

• Exponential Growth
  • Esports has seen rapid growth, especially during the pandemic.
• Investment and Structure
  • Increased investment from external parties and publishers has added structure to esports.
• Esports vs. Gaming
  • Important to differentiate between casual gaming (bottom of the pyramid) and elite esports (top of the pyramid).
• Challenges and Opportunities
  • Crossover between esports and betting presents unique challenges and opportunities, especially with regulatory considerations.

Magnus's Insights

• Pandemic Impact
  • Increased interest in esports betting, especially for games like NBA 2K and FIFA that are easier to understand.
• Play-Watch-Bet Strategy
  • Important for players to understand the game before betting; simpler games attract more bets.
• Betting Models
  • Need for more live betting and smaller bets to drive engagement.
• Educational Need
  • Educating potential bettors on complex games could further drive growth.

Payments in Esports and Gaming

Gareth's Insights

• Microtransactions
  • Significant portion of gaming revenue comes from in-game purchases, leading to habitual small transactions.
• Brand Strategy
  • Use esports as a marketing channel to build brand recognition and trust among gamers, which could translate to preference for their payment services in both gaming and gambling.
• Continuity Across Platforms
  • Being visible across gaming and gambling platforms to build trust and encourage usage of their payment methods.

Olga's Additional Points

• Youth Engagement
  • Younger generations are tech-savvy, favor online and fast payments, and are more likely to adapt to new payment methods like cryptocurrencies.

Regional Differences in Esports

Dave's Insights

• Game Preferences
  • Different regions favor different games (e.g., Counter-Strike in Europe, Valorant in NA).
• Regulatory Environment
  • US is more cautious due to regulatory scrutiny; publishers like Riot Games maintain a cautious approach to gambling.

Magnus's Insights

• Community Differences
  • Stronger community for certain game genres like fighting games in the US.
• Maturity and Engagement
  • Gamers span all age groups; esports engagement is more mainstream and not limited to younger audiences.

Olga's Market Insights

• Popular Games
  • Dota and Counter-Strike dominate, while games like League of Legends are less popular for betting.
• Challenges in Gambling
  • Esports needs more well-organized competitions to make betting more viable.

Growth and Future of Esports Betting

Key Points

• Natural Growth
  • Esports betting is expected to grow organically as esports becomes more mainstream and its audience ages.
• Regulating Betting
  • Importance of aligning with regulatory standards to build trust within the esports community.
• Educational Initiatives
  • Need to educate wider audiences to bridge the gap between gamers and bettors.
• Unified Frameworks
  • Esports lacks unified tournament structures akin to traditional sports leagues, which can impede growth and easy understanding for new fans.

Closing Remarks

Dave Harris

• Digital Community Engagement
  • Pandemic has accelerated the digital community engagement, making it a positive period for the industry despite the challenges.

Olga

• Awaiting New Games
  • Anticipating new, understandable games to enhance both playing and betting experiences.

Magnus

• Regulations and Trust
  • Emphasizing the need for clear regulations and building trust to integrate esports and betting better.

Gareth

• Respecting the Audience
  • Brands must respect the organically grown esports audience to earn their trust and enhance the overall experience.