1. Comment
  2. Comment
September 30, 2021

Esports Technologies Inc. is most successful IPO in 2021

By MarketLine

Out of the 767 IPOs to his US exchanges in 2021, licensed online gaming operator Esports Technologies Inc. which launched its IPO in April 2021 is currently the most successful IPO of 2021.

With an initial price of $6 per share it now sits at $32, an increase of over 400%, which shows huge promise for an industry in its infancy.

Esports industry’s billion-dollar valuation

Gaming analysis company Newzoo predict that the industry will be worth $1.8bn by 2022, after a 15% rise in 2020, despite the negative effects the majority of industries faced from COVID-19 throughout the year.

From an online population of 4.5 billion, esports typically reaches around 10% of that audience which represents a huge opportunity for investors, with that rising to 577 million by 2024. Advertisers and sponsors will be keen to invest more heavily into the industry as the audience increases, with the likes of Sky, BBC and ESPN broadcasting major tournaments.

As the esports industry has grown over time, it has attracted an audience willing to bet on the outcomes of the games played. Esports Technologies’ IPO raised over $14m for the company and its share price has since skyrocketed to $32 on September 29, 2021 at market close.

Online betting becoming more common will benefit Esports Technologies Inc.

At the moment, esports betting is legal in few countries such as the UK which regulator UKGC defined it under the same regulations as sports betting. There are vendors in some European countries like Italy, Malta, Spain and Denmark, with the likes of Canada allowing its population to bet on regulated overseas markets.

The world is however, slowly deregulating online betting, most notably in the US, which is undergoing important changes to its regulations across the entire country that will see online betting more commonplace as time goes on.

The deregulation of online betting around the world, as the esports industry rises in viewing figures and solidifies its market, coupled with growing video games industry revenues, means the esports industry is on its way to a lucrative future. This is further driven by companies like Esports Technologies pushing for growth, buoyed now by its investors.