GVC pinpoints esports as major future growth driver
CEO Shay Segev reveals operator is taking “baby steps” to build presence in vertical he sees as lucrative in the long term
GVC hopes to become a global leader in the esports betting industry after highlighting the international gaming market as a key driver of future revenue.
CEO Shay Segev said GVC would undertake steps to build its brand into the growing esports environment as it looks to diversify outside of sports betting and casino gaming.
At present, esports provides low single-digit revenue to GVC’s sports betting segment, but Segev expects the global esports betting market to be worth more than $1bn by 2024.
“We are seeing some exciting opportunities emerging in consumer trends and there are vast untapped markets out there,” said Segev.
“The gaming market is huge and growing every day. There are currently around 2.7 billion gamers in the world and 100 million people watched the League of Legends World Championship.
“Gaming is fast becoming the hub for other digital activities, creating a whole new ecosystem where customers interact with the online market, including betting.
“These emerging trends create new audiences and we are investigating who they are and how our offering can be tailored for them,” he added.
The Israeli revealed gaming expansion would not be solely limited to esports as he pledged to invest in “anything that can create value”, from skill games to social gaming.
Segev suggested GVC would look to enter the esports market with a new product that would be more attractive to gaming communities, most likely through M&A.
The CEO is keen to grow GVC’s presence on streaming platform Twitch and partner with esports providers in a bid to become a “trusted and leading wagering business in the ecosystem”.
Segev was last week asked whether investing in esports would contradict GVC’s renewed commitment to sustainability and safer gambling due to the vertical’s reduced customer protection measures and integrity concerns.
He replied: “This is a long-term journey and part of our intention is to expand to new audiences and categories. I accept and agree with those challenges re integrity and less mature regulation, but we don’t want to rush things – we are making baby steps to invest.
“We want to invest in tech and work with regulators and integrity leagues to start building our name into this business.
“It won’t get mature quickly, but it will be lucrative in the long term, which is why we are starting this journey,” he added.
Esports enjoyed an upsurge during the early stages of the Covid-19 pandemic as conventional sporting events were cancelled and punters searched for alternative markets to bet on.
The imminent roll out of 5G technology is expected to provide a major boost to the esports industry as mobile gaming connectivity moves in line with desktop and console capability.