🏭Complexities of the Industry

Limited Engagement and User Experience:

Traditional sports predictions and esports platforms fail to cater to the diverse ways users consume content and engage with online platforms, particularly in the rapidly growing esports market. Existing platforms lack sufficient tools for esports viewers to engage, as these viewers typically consume content on various channels like Twitch rather than traditional prediction websites. Furthermore, current prediction products do not resonate well with esports viewers, who require more interactive and engaging platforms. This gap in engagement tools leaves a significant portion of the potential user base underserved.

In addition, technological advancements and evolving user preferences pose additional challenges. Keeping pace with continuous advancements in mobile technology, VR, AI, and blockchain is essential for offering a competitive and engaging gaming experience. The growing popularity of mobile devices has transformed user behaviour, demanding more immersive content. To overcome these challenges, the industry must develop innovative, interactive platforms that cater to evolving user preferences and leverage cutting-edge technologies to provide an engaging experience across all sectors.

Fragmentation Across Various Sectors:

Fragmentation is a significant challenge across sectors of gaming and sports betting markets, including gambling and the Sportsbook trading markets. In sports speculation, users are restricted to settling their predictions only with the operator they placed their predictions with, which limits flexibility and potential value.

Similarly, loyalty programs suffer from fragmentation, as users accumulate points from various gaming brands but lack a unified platform to consolidate and utilise them effectively. These isolated loyalty points have limited utility, preventing users from realising their full value.

Moreover, the Sportsbook market also faces challenges in integrating sports speculation and P2P exchanges with trading platforms which can open the door to continuous trading of placed wagers representing sports outcomes.

Addressing fragmentation in these markets is crucial for creating a unified platform where users can consolidate and optimise their assets, enhancing liquidity, value maximisation, and overall user experience.

Fewer Monetisation Opportunities

Currently, the gaming and esports sectors offer limited opportunities for users to monetise their time and efforts. The rewards in the form of in-house tokens provided by these platforms often have restricted use cases, diminishing their overall value to the user. This limitation can lead to lower engagement and retention, as users may not perceive enough value in their participation. To enhance user satisfaction and retention, the industry needs to develop innovative ways for users to monetise their engagement. This could involve creating more diverse and valuable rewards and expanding the use cases for in-house tokens, thus increasing their appeal and utility.

High Cost to Company and Users

Operating on blockchain networks involves transaction fees that are paid to miners or validators for processing and recording transactions. These fees can vary widely, depending on how congested the network is, and can become quite expensive during peak times. For companies in the gaming, esports, and casino sectors, these high transaction fees can significantly reduce profit margins, making it less attractive to use blockchain technology for certain applications. For users, the cost of these fees can be a deterrent, particularly for smaller transactions, where the fee might be higher than the transaction amount itself. For instance, according to BitInfoCharts, the average Bitcoin transaction fee, a leading blockchain network, as of the time of writing is $11.05 per transfer, or 0.0004 BTC in 2023, which has doubled itself in one year [10]. This presents a challenge for the industry to find ways to reduce costs while maintaining the benefits of blockchain technology, such as security and transparency.

Risk of Frauds

Fraud in the gaming and esports industries can take many forms, especially with the rise of fake crypto wallets, Initial Coin Offerings (ICOs), and cryptocurrency exchanges. These fraudulent activities exploit the large sums of money involved and the anonymity that the digital world can provide. Scams often include phishing attacks, fake giveaways, and hacking attempts targeting game vulnerabilities. For instance, phishing scams can trick users into revealing private keys to fake wallets, while fraudulent ICOs can swindle investors by promising false returns. These scams lead to significant financial losses for users and can severely damage the reputation of the companies involved, making it challenging to establish and maintain trust within the community. The risks for users are heightened by the scarcity of reputable and verifiable platforms, complicating their ability to differentiate between genuine and fraudulent entities.

To highlight the scale of the problem, the Federal Trade Commission reported that consumers lost nearly $8.8 billion to fraud in 2022, marking an increase of more than 30 per cent over the previous year [11]. To address these issues, companies must implement strong security measures and create a trustworthy environment to protect users' interests and build confidence in the platform.