HOME / BLOG

Your Hidden MVP: Why Esports Is No Longer a Side Bet for Sportsbooks

Esports as the Ultimate Add-On for Sportsbooks
Yoav ziv 
Subscribe To Our Blog

In an industry defined by razor-thin margins and constant pressure to keep users engaged, tapping into a high-volume, high-growth market segment can be a genuine edge. For sportsbooks navigating an increasingly competitive landscape, that edge has been sitting on the bench for longer than it should have: esports.

Far from a niche vertical, esports has been steadily growing in popularity among bettors and gaining traction with sportsbooks for years. It now ranks as LSports’ third most in-demand offering by client order volume, trailing only football and table tennis, and it leads every other vertical in year-over-year growth.

Key takeaways

  • Esports is LSports’ third most in-demand sport by client order volume, trailing only football and table tennis, and its leading vertical for year-over-year growth.
  • The category splits into two distinct products: high-frequency simulated sports like E-Football and E-Basketball, and deeply engaged core titles like CS2, Valorant, and League of Legends. Each behaves differently and each earns its place in a sportsbook’s offering for different reasons.
  • The Esports World Cup 2026 carried a 75 million dollar prize pool, the largest single-event commitment in esports history, underscoring how far the vertical has moved from niche to mainstream infrastructure.
  • Regulatory treatment of esports betting still varies by jurisdiction, which is one of the last real reasons operators hesitate. It is a compliance question, not a demand question.
  • LSports’ esports coverage, paired with ENGAGE for audience personalization and BOOST for spotting coverage gaps early, gives operators a way to treat esports as a core offering instead of an afterthought.

From big to bigger: esports’ continued rise

According to our Q1 2025 report, esports demand grew 75% year over year, making it the fastest-growing category the company tracks. That is not a pandemic-era spike working its way out of the system. It is a category that has kept compounding well past the point where a temporary bump would have faded.

The growth is not confined to traditional esports strongholds either. Asia, long considered the epicenter of competitive gaming, continued its upward trajectory with triple-digit year-over-year growth in fixture consumption. Europe, historically a smaller esports betting market, crossed a meaningful fixture-volume milestone for only the second time on record. Demand is broadening geographically at the same time it is deepening.

The wider esports calendar backs this up. The Esports World Cup 2026, held in Paris after relocating from its original Riyadh venue, carried a total prize pool of 75 million dollars, the largest single-event commitment in esports history, across 25 tournaments spanning 24 games. The League of Legends event alone drew a peak concurrent audience of roughly 1.47 million viewers, according to Esports Charts’ tournament data. Events at this scale are not niche programming anymore. They are appointment viewing with a betting audience already built in.

Two sides of the same (massive) coin

This should not come as a surprise, since esports delivers value to sportsbooks through two distinct verticals, each with its own betting behavior, audience profile, and scheduling rhythm.

Simulated sports, such as E-Football and E-Basketball, offer volume and consistency that few other categories can match. These titles function as a frictionless extension of traditional sports betting: constant gameplay, a real-sport feel, and a calendar that never really stops. That makes them especially valuable for covering off-peak hours and keeping bets flowing when the traditional sports calendar goes quiet.

Core esports titles, led by CS2, Valorant, and League of Legends, attract a different kind of audience: deeply loyal, highly engaged, and often younger and more digital-first than a typical sportsbook customer. These games are not just competitions, they are full ecosystems with their own media, community, and tournament infrastructure. CS2 alone generated an estimated 32.27 million dollars in total prize money across 2025, which is approximately 41.5% year over year. 

Fewer fixtures come out of this category than out of simulated sports, but they tend to drive disproportionately higher engagement and turnover, especially during marquee tournaments like the Esports World Cup or major regional championships.

DimensionSimulated sports (E-Football, E-Basketball)Core esports titles (CS2, Valorant, League of Legends)
Fixture volumeVery high, near-constantLower, concentrated around matches and tournaments
Scheduling valueFills off-peak hours and gaps in the traditional calendarPeaks sharply around major tournaments
AudienceBroad, overlaps heavily with traditional sports bettorsNarrower but deeply loyal and highly engaged
Engagement patternSteady, high-frequency betting activityLower frequency, higher intensity around events
Best use in a sportsbookBaseline volume and consistencyTurnover spikes and new-audience acquisition

Sportsbooks have already stopped treating esports as a novelty

Look at how the wider market covers esports today and the pattern is clear: this is no longer framed as an experimental add-on. Every major US operator, including DraftKings, FanDuel, BetMGM, Caesars, and Hard Rock Bet, now carries dedicated esports markets, and specialist esports sportsbooks compete directly on the depth of their title coverage and prop menus rather than on whether they offer esports at all. The competitive question has shifted from “should we offer esports” to “how deep is our esports offering compared to the operator next to us.”

That shift matters for how sportsbook executives and trading teams should think about esports internally. Treating it as a bolt-on product, priced and staffed as an afterthought, increasingly means falling behind operators who have already made it a core part of their calendar strategy.

The one real hesitation: regulatory variation

Esports betting legality is not uniform. Unlike traditional sports betting, some jurisdictions treat esports as a distinct wagering category subject to its own approval process, separate from a general sports betting license, which means availability and permitted bet types can vary meaningfully by state or region. This is a genuine operational consideration, not a reason to avoid the vertical outright, and it is worth confirming directly with counsel in each licensed market before expanding esports coverage.

Integrity monitoring is worth a specific mention too. Esports has its own competitive integrity infrastructure, distinct from traditional sports, and operators expanding into the category should confirm their data and monitoring partners have real coverage there rather than assuming traditional sports integrity processes translate directly.

Making esports a core offering, not an afterthought

A few practical things separate sportsbooks that run esports well from those that treat it as an afterthought:

  • Coverage breadth across both simulated and core titles, since they serve different purposes and different audiences within the same vertical.
  • Latency that matches the format, since many esports markets, round winners, first blood, map handicaps, resolve on a timescale closer to micro-betting than to traditional in-play markets.
  • Engagement tools built for a younger, digital-first audience, who expect a more interactive, community-driven experience than a standard odds board.
  • Settlement accuracy for high-frequency prop markets, since core titles in particular generate a large number of granular in-match props that all need to resolve correctly.

Why the right data partner matters

For sportsbook executives and trading teams, the strategic value of esports is clear. It does not just supplement existing offerings, it fills scheduling gaps, appeals to younger, digital-first bettors, and helps smooth out the impact of unpredictable events elsewhere on the calendar.

LSports’ Esports API covers both sides of the category, simulated sports and core titles, across dozens of games, leagues, and markets, delivered from the same real-time infrastructure that powers LSports’ broader sports coverage. 

Once that data is flowing, ENGAGE helps turn it into the kind of personalized, interactive experience a younger, digital-first esports audience actually expects, rather than a generic odds feed bolted onto an existing sportsbook layout. BOOST rounds this out by surfacing coverage gaps and margin opportunities as they emerge, which matters most in a vertical that is still growing this quickly.

Too often, esports gets treated as either a novelty or a black box. The data says otherwise. Esports is not coming. It is already here, and for operators ready to treat it as core rather than supplementary, the upside is not just incremental. It is exponential.

Sign up for a free trial or get a demo to see LSports’ esports coverage on your own platform.

Frequently asked questions

Why should sportsbooks offer esports betting? 

Esports is one of the fastest-growing verticals in sports betting by year-over-year demand, and it serves two distinct purposes: simulated sports titles provide high-frequency volume that fills gaps in the traditional sports calendar, while core esports titles attract a loyal, engaged, often younger audience that drives strong turnover around major tournaments.

What is the difference between simulated sports and core esports titles? 

Simulated sports, such as E-Football and E-Basketball, mimic real-world sports with constant, high-frequency gameplay and function as a near-seamless extension of traditional betting markets. Core esports titles, such as CS2, Valorant, and League of Legends, are competitive video game titles with their own dedicated audience, tournament structure, and community, generating lower fixture volume but often higher engagement and turnover during events.

Is esports betting legal everywhere sports betting is legal? 

Not necessarily. Some jurisdictions treat esports betting as a distinct category requiring separate approval from a general sports betting license, so availability and permitted markets can vary by state or region. Operators should confirm the specific requirements in each jurisdiction before expanding esports coverage.

Which esports titles generate the most sportsbook interest? 

Simulated sports titles like E-Football and E-Basketball generate the highest fixture volume due to their constant schedules. Among core titles, CS2, Valorant, and League of Legends consistently rank among the most bet-on games, particularly around major tournaments such as the Esports World Cup.

How is esports data different from traditional sports data for a sportsbook? 

The underlying need, fast, accurate, real-time event data, is the same. What differs is scale and speed within a match: many esports markets resolve on a much shorter timescale than traditional sports markets, closer to micro-betting, which places a premium on low-latency data and settlement systems built for high-frequency, granular events.

Do sportsbooks need a separate data provider for esports? 

Not necessarily. Many sports data providers, including LSports, offer esports coverage as part of a broader data platform, which allows operators to manage esports alongside traditional sports through the same integration rather than maintaining a separate vendor relationship purely for esports.

MORE blogs

Prediction Markets vs. Sportsbooks_ What're the Differences Cover

Prediction Markets vs. Sportsbooks: What Are the Differences?

Compare prediction market vs sportsbook options so you can understand pricing, liquidity, risk, regulation, and the...
6 Best Technologies to Use For Sports Fan Engagement in 2026 Cover

6 Best Technologies to Use for Sports Fan Engagement in 2026

Discover the best technologies to use for sports fan engagement so you can boost interaction, build...
How Do Sportsbooks Detect Arbitrage in 2026 Cover

How Do Sportsbooks Detect Arbitrage in 2026? [Guide]

Explore how sportsbooks detect arbitrage so you can identify betting patterns, reduce exposure, and protect your...

What Is Sports Betting? A Foundational Guide for Operators

Learn what sports betting is so you can understand how betting markets work, explore popular wager...
6 Risk Management Techniques for Prediction Markets Cover

6 Risk Management Techniques for Prediction Markets in 2026

Explore the risk management techniques for prediction markets so you can reduce exposure, protect profits, and...
Importance of Data Quality Management in Sports Analytics Cover

Data Quality Management in Sports Analytics: What to Know?

Discover the importance of data quality management in sports analytics so you can improve accuracy, reduce...

TRUSTED BY MAJOR SPORTSBOOKS 

HEAR IT FROM OUR PARTNERS​