What: eSports marketing and gaming are major topics of interest in the sports business these days. One of the panels at Portada Miami focused on business opportunities related to eSports.
Why it matters: The potential for growth in Latin America is tremendous. Companies are doing more business with esports and gambling.
Most of the sports business world focus on two of the hottest business topics in the United States: growing gaming and eSports and legalized sports gambling. Meanwhile, a key group of executives at Portada Miami 2018 pointed out that we should be looking, too, at Latin American countries and the Latin community as bold next steps in business related to sports.
“While the United States is an obvious multibillion-dollar market depending on the ruling of the Supreme Court, we have spent a good amount of time educating Central and South American countries on legalization, and the growth there is also astronomical,” said Chris Dougan, Head of North American Communications at Genius Sports (@GeniusSports). “It’s also not just a growth area for traditional sports like soccer or even tennis. There is a great crossover into the legalized gambling of eSports properties. So we are very keen on engagement in multiple locations now.”
The future is also bright for brands that are looking to combine their marketing dollars into the multicultural option.
Latin American market
The numbers and projections put forward for sports gambling and eSports engagement are staggering. Dougan mentioned US$10B in illegal dollars wagered in the United States during a calendar year. Meanwhile Ben Spoont (@benspoont), Founder of Team Misfits and head of eSports for the NBA’s Miami Heat (@MiamiHEAT) recounted the millions of people who spend on elite eSports franchises. He also talked about the massive online adoption by fans and it’s expected growth. The market for adoption has been primed. While connectivity improves, gaming companies get more used to doing business in Latin America.
“In all of the eSports, Latin America is the fastest-growing market,” said Spoont. “The engagement for new fans is really off the charts. Working with the Heat in their investment in their Overwatch team will help that market grow in Florida and beyond.”
The crossover between the two areas, eSports and gambling, presents an intriguing opportunity. Dougan was quick to point out that like in traditional sports, the protection of data is tantamount for any business engagement.
“Brands need to assure consumers that whatever games they are watching and potentially betting on are legitimate and there is no instance of impropriety,” he added. “That’s where Genius Sports comes in. Being able to work with the leagues, with the game creators, to make sure that there are no issues and that everything is going on is happening in a fair and equitable digital environment.”
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Fair and equitable
Fair and equitable is what the gaming world continues to seek as it grows at a meteoric pace. Avid eSports communities have propped up in countries like Brazil, Argentina, and Colombia.
“The association and the support of a global brand with the Heat have been a huge boost not just for our business, but for all of the eSports,” added Spoont. “It gives us the ability to talk to more people from a business perspective, and with South Florida being so multicultural, it really puts it in a unique position for where we can grow in the future.”
The future is also bright for brands looking to combine their marketing dollars not just into traditional sports and eSports, but into multicultural adoption that could be part of the mix as well. Spoont pointed to Geico as one brand that seems to have found the mix on all fronts, with more to follow. That sponsorship will also grow in value, Dougan added. More casual fans are interested in activity in and around all sports through legalized sports gambling.
“The market is going to be very active across the Americas. It’s just a case of developing and engaging when the opportunity arises legally,” he added.
And according to both leaders, as well as moderator Adam White of Front Office Sports (@frntofficesport), that opportunity for one piece, eSports, is quickly coming into focus. Meanwhile, the other, legal sports gambling, isn’t that far off either.
[Featured image credit: Immortals]