The Future of Esports Betting in Malaysian Online Casinos
The global esports market doubled to nearly $240 billion between 2017 and 2023, strongly led by mobile games. Current esports betting trends project a rising revenue of $4.3 billion by the end of 2024. While this is a scenario for the global esports industry, the future of esports betting in Malaysia is witnessing many notable trends. The growing popularity of esports betting is due to the increased engagement that games offer, particularly to the younger demographics. Although the regulatory landscape is quite vague, the growing market size proves to be a key determinant of the potential future of the esports industry. The convergence of online gambling and esports popularity presents many opportunities for the best Malaysian Online Casinos, but regulatory hurdles and challenges need to be addressed for smooth operation.
In this article, we will look into the evolution of esports betting in Malaysia and what opportunities lie ahead for the top Esports betting sites in the country.
The Evolution of Esports Betting in Malaysia
Malaysia is known for its rich history, which is deep-rooted in traditional sports betting, which has slowly given rise to the popularity of esports betting trends. The shift signifies a movement towards modern competitive gambling forms.
According to a study by STELLAR, the esports betting market is expected to grow at a CAGR of 12.7% from 2024 to 2030. The boom of esports betting is seen among millennials and Gen Z, who boast more than 14 million gamblers. The rapid growth of the esports industry can be attributed to the technological development in Malaysia and improved connectivity that allows players to compete on a global level.
Other factors that have led to interest in esports betting in Malaysia include the youthful demographics of gamblers, the potential to earn lucrative returns, major cultural shifts, and, most importantly, the engaging nature of esports games. The introduction of streaming platforms and social media has also amplified the reach of the Malaysian esports betting market. The current esports betting regulations and trends suggest a significant shift towards mobile usage and enhanced engagement through interactive functions and features. This inevitably pushes for a brighter and more successful future of the esports industry in Malaysia.
Although esports has built a global presence, considering the major demographics in Malaysia, certain games have become more famous than others. Popular titles like the League of Legends, Dota 2, Counter-Strike: Global Offensive (CS:GO), Overwatch, Call of Duty, FIFA, and Rainbow Six Siege have a considerable influence on esports betting.
League of Legends (LoL) at Riot Games remains the most popular and widely wagered-on esports events in Malaysia and around the world. It has attracted millions of bettors and viewers with fast-paced gameplay, a diverse list of champions, and popular esports events like the LoL World Championship. On the other hand, Dota 2, Valve Corporation’s development, offers plenty of opportunities for the most competitive betting action with its popular international tournaments, strategic depth, and high skill ceiling. Furthermore, CS: GO, also developed by the Valve Corporation, is popular for its tactical gameplay, competitive esports scene, and intense gunplay. With its frequent tournaments, a passionate following, and a large player base, CS: GO offers plenty of opportunities for dynamic betting in Malaysia.
Regulations for Esports betting in Malaysia
Technically speaking, the act of gambling and betting online is illegal in Malaysia. While this may sound vague, that is how the local betting market functions at present. The first-ever law on the betting industry was established in 1956 and it has been over half a century since it happened without any changes in the laws. There are no clear esports betting regulations and whether or not wagering on esports is illegal.
Although the strict regulatory scenario on betting operations has made it difficult for the country to earn revenue through taxes, the popularity of esports betting is still on the rise. Despite this, we recommend that our readers be mindful of the regulatory updates that take place surrounding esports betting and its operations.
Opportunities for Esports Betting Future Improvements
The esports betting market in Malaysia has immense potential to grow, with certain areas being overpowered and influencing the industry in many ways. For instance, the live or in-play betting market is expected to be one of the most important esports betting trends for Malaysia and the global market. The global in-play betting market is expected to experience a remarkable growth of 11.7% CAGR between 2024 and 2021, and the growth will percolate throughout Malaysia.
Among other emerging trends esports betting Malaysia will experience is the growth of virtual sports, which is steadily growing in the country. Virtual sports, which are computer-generated simulations of actual sports games, have become attractive to Malaysian bettors.
Data analytics and artificial intelligence are also considerably contributing to the future of the esports industry in Malaysia, with various technologies being used to analyze data from past games and predict future game outcomes. The use of artificial intelligence will also be a major factor contributing to the growth of the esports betting industry in Malaysia, being used to identify and prevent fraud as well as keep a check on problem gambling behavior.
Considering the esports betting trends and the popularity of the industry, the need of the hour is to practice responsible gambling to mitigate the risks and promote a more ethical and secure betting environment. For sustainable growth, responsible gambling should be adopted through various tools and controls like deposit or wager limits and self-exclusion tools.
Let us now take a look at the opportunities for improvements that can be made for a brighter future of the esports industry.
- Increasing Popularity of Competitive Gaming
Similar to conventional sports events, esports betting provides endless opportunities for players to find common ground. Various factors have fuelled the rising interest in competitive gaming, such as widespread smartphone adoption and affordable internet accessibility.
- Diversification of the Betting Industry
One of the key opportunities in the esports betting industry lies in its diversification and expansion. You see, betting on esports is an online activity, and live bets are an integral part of it. There is no way players can run out of options while wagering on major esports leagues.
- Challenges of Esports Betting
Although the market for esports betting is on the rise and is only expanding more by the day, some key areas require improvement. Some of the challenges that esports bettors in Malaysia still face are –
- Lack of Regulation
Since the market is still in its infancy stage, fewer esports betting regulations are in place. This has led to a rise in cheating scandals and match-fixing, thereby negatively affecting the world of esports betting.
- Limited Availability on Betting Markets
esports is similar to any other sporting events but there is generally limited availability of betting markets since they are not as popular as other sports. Many huge markets are still waiting for regulators to encourage esports betting so that players can place wagers through sportsbooks available online.
- Lack Of Understanding Of Esports
While traditional sports betting has been an amazing pastime for many generations, esports betting is still a new concept to many. Hence, there is a major challenge, namely, a lack of understanding of how esports betting works and the underlying characteristics of the industry.
Conclusion
The future of the esports industry in Malaysia is becoming fiercely competitive with emerging trends and rapid digitization. It is important to study the regulatory framework and the future of esports betting in Malaysia, as well as the opportunities and emerging trends that the industry offers. In addition to this, promoting responsible betting requires efforts from all stakeholders, including the government, regulators, casino operators, and esports organizations. Through robust regulations, collaborative efforts, and educational initiatives, bettors in Malaysia can enjoy a more safe and sustainable betting culture that benefits individuals and the nation as a whole.
FAQs
1. Will virtual reality impact esports betting?
Yes, virtual reality (VR) can certainly impact esports betting through improved user experience and the development of a more immersive and engaging atmosphere. This further brightens the future of esports betting in Malaysia.
2. What measures can be taken to ensure fair and responsible esports betting?
Self-regulation with bet or loss limits can help players prioritize themselves and keep protected from the side effects of over-gambling.
3. Will live betting become more prominent in esports?
Live betting has already contributed to the growth of the esports industry and we can expect that the live betting feature will get more prominent as tech evolves and bettors look for more immersive gameplay.