05/17/18: Industry reacts to news of legalized sport betting.

It’s Thursday May 17, 2018 and this is your weekly early morning Esports briefing.

The Supreme Court’s decision to strike down laws barring states from allowing gambling in sports brought the spotlight to the growth of esports, which features a young, affluent and tech-savvy consumer.

Among the statements released by the industry were from the Esports Integrity Coalition, which welcomed the decision. The org’s Integrity Commissioner, Ian Smith, said, “The US is one of the world’s largest esports betting black markets. The action by Valve to shut down access to skins betting sites in 2016 had some impact, but a large number of American esports gamblers just moved to cash sites and continued betting in an unregulated environment, with all its attendant dangers to the bettors and to esports integrity. Recognizing that people will continue betting, we welcome the decision that should mean that betting on esports can be brought into the light of good regulation well enforced and we look forward to working with State regulators, operators and esports organizations to make the shift to legalization as smooth as possible with competitive integrity at the forefront of everyone’s thinking.”

Meanwhile, Unikrn CEO and co-founder Rahul Sood, posted that “Regulated sports betting is healthy for the environment as it means more consumer protection and will undermine skin betting and other illicit gambling outlets which take advantage of at-risk individuals, including minors, by operating outside of regulation. Unikrn’s goal is to not collect money at all costs, but to offer a standalone product that is worth trusting and using – to building the best experience possible for regions where esports betting would be regulated.”

Millennial Esports responded to Monday’s decision with the news that it is exploring opportunities to leverage its current assets in relation to legalized esports betting. “The push towards legalized sports betting has been building for some time and the Supreme Court decision is potentially the tipping point, with individual states now able to make their own rules regarding sports betting, including the option of legalizing Esports betting,” said Millennial Esports CEO, Alex Igelman. “This presents an incredible opportunity for Millennial as we have a number of assets that can provide real value and innovation to what will in effect be a new industry – having only previously existed, for all intents and purposes, in Nevada. The fact that we already own these assets and can quickly deploy them in support of Esports betting initiatives is also significant considering the speed with which this is predicted to happen.”

COMPETITION and VENUES

The Asian Games unveiled the titles that will take part in esports’ first run in the event this summer, with the Asian Esports Federation confirming the inclusion of Pro Evolution Soccer, League of Legends, Hearthstone and Starcraft II, along with mobile titles Clash Royale and Arena of Valor.This year’s Asian Games will take place from Aug. 18 – Sept. 2 in Jakarta-Palembang, Indonesia.

Meanwhile, the IOC is reportedly meeting with key esports companies and figure at a summit taking place in Lausanne, Switzerland at the end of July. There, the org will discuss the industry’s inclusion in the Olympics, according to Sport1.

The 2018 PlayerUnknown’s Battlegrounds Global Invitational unveiled its North American slate of qualifiers, with play beginning May 24 and 320 total teams competing. The groups will be split up into 16 lobbies of teams each while the top 10 teams from each lobby after four matches will move on to the second round, which starts the next day, with round three on May 26 and 27. The final 20 teams will then square off in Burbank from June 22-24 with the top three teams then moving on to the PGI in Berlin from July 25-29.

Capcom announced the launch of three new retro-themed esports tournaments in a move to celebrate the 30th anniversary of the Street Fighter franchise. Centered around Super Street Fighter 2 Turbo, Street Fighter Alpha 3, and Street Fighter 3: Third Strike, the action will begin on June 29 with Super Street Fighter 2 Turboat CEO 2018 in Daytona Beach, Florida. The Street Fighter Alpha 3event run at the SoCal Regionals 2018 in Ontario, CA on Sept. 14, while the Street Fighter 3: Third Strike battle takes place on Oct. 26 at the Canada Cup in Toronto.

WorldGaming Network is launching a new, “first-of-its-kind” competitive video gaming tournament for Rocket League. Teams of three can now register for the ‘WorldGaming Rocket League Canadian Challenge,’ a 3v3 tournament that has over $20,000 in cash and prizes up for grabs, including $10,000 for the winning team. The tournament will span June 16-July 8 with Regional Finals going down online on July 22. The top eight teams from the Regional Finals will then compete in Toronto at Cineplex’s Scotiabank Theatre Toronto on August 18-19, 2018, at the Finals. WorldGaming also announced today that it is partnering with Pizza Pops and DRIVING FORCE as key contributors to this the event, with the partnership providing them access to promotional and advertising opportunities through activations at ‘live’ events as well as for online programming.

eGency Global is partnering with SMU Guildhall, the top ranked graduate school for video game design in the world, to launch the OP (Over Powered) Live Dallas. The esports event will span Sept. 22-23 at the Irving Convention Center with an eye to showcase the career opportunities available to video game and esports devotees. The two-day OP Live Dallas schedule will feature competitions for 16 collegiate teams and 4 pro esports teams, along with showcases featuring never-before-seen games created by SMU students and alumni.

Esports Arena Oakland opened its doors on Saturday with “Smash Royale,” an all-day, multi-genre event featuring Super Smash Brothers (Smash 4, Melee), Street Fighter V and Fortnite tournaments. Located in Oakland’s popular Jack London Square waterfront, Esports Arena Oakland is the fourth dedicated gaming arena and production facility in the Esports Arena network, which also includes venues in Orange County, Calif. and Las Vegas, and mobile touring arena Esports Arena DRIVE.

ESPN writes that Overwatch League is looking to expand next season by four to six teams, with franchise prices ranging from to $30-60 million each, depending on the location.

Williams Racing formally launched an official esports team to compete in a slate of racing contests. The team will now run competitions for gamers to earn their place on the Williams eSports roster although the first three drivers signed to the Williams eSports roster are: Javier Perez, Jani Vitsaniemi and Bernardo Perez. As part of its activity in 2018, the team will contest the second season of the Formula 1 eSports Pro Series.

INSIGHTS

Stream Hatchet’s Brand Impact tool searches keyword mentions in the profiles of Twitch streamers, and suggests affinity towards specific brands and products. For example, a streamer will list what type of keyboard or graphics card their computer uses. This week, we are providing you insights into whether streamers display affinity to select brands in their Twitch tiles.

Stream Hatchet identified 476 Twitch channels that displayed an affinity towards Coca-Cola and Red Bull.
Grimmmz was the top streamer identified who displayed an affinity towards Coke. Currently he does not have an endorsement deal with Coca-Cola.
Sodapoppin was the top streamer identified for both Inteland Corsair. The streamer uses an Intel i-7 6950x CPU and a Corsair Gaming K70 RGB keyboard.

For further information on our methodology, and broader insights into Twitch tiles, visit our blog at: blog.streamhatchet.com

ACTIVATION

Team Vitality is partnering with Infront on a deal that will see the French esport club in a move to highlight “the team’s ambition to take advantage of the commercial opportunities increasingly available in the sport.” As part of the partnership, Infront will market the club’s sponsorship offers, utilizing its vast experience and network within the sports industry.

DreamHack detailed a partnership with global humanitarian organization Save the Children this year. The org will have a presence in the Expo at DreamHack Austin, Atlanta, Summer and Winter, giving attendees an opportunity to learn more about the organization’s work, including a virtual reality experience. During these events, charity streamers will work together in an effort to raise at least $100,000 as part of Save the Children’s Stream Team.

The Call of Duty Endowment launched its application process for the sixth annual “Seal of Distinction” Awards, recognizing US and UK-based non-profits that demonstrate the highest levels of effectiveness, efficiency, and integrity in placing veterans into high-quality jobs. The award for grantees is accompanied by a $30,000 unrestricted grant, as well as the opportunity to apply for future funding. Past beneficiaries include: Goodwill Southern California, Goodwill of the Olympics and Rainer Region, NextOp, RFEA, and Walking With the Wounded.

Overwatch is getting Nerfed, courtesy of a new deal with Nerf to launch a slate of themed blasters to the market. The play weapons will be part of the Nerf Rival line, a style of high-performance, “precision battling” play gun designed to offer an alternative to paintball. Dot Esports writes that among the toys being designed are D.Va’s Light Gun and Reaper’s Hellfire Shotguns.

CONSUMER SNAPSHOT

Source: FanAI.io

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PLATFORMS

Hitting its third anniversary this week, gamer chat platform Discord announced that the company now boasted 130 million users, swelling three times its numbers from a year ago. Overall, Discord reports 19 million daily active users sharing 530 million messages a day. Its largest server – Fortnite – leads with at 180k users. The growth comes on the heels of a new round of funding in April, which valued Discord at$1.65 billion, as well as news announcing the integration of Discord and Xbox

Fantasy sports pillar DraftKings reports that its fastest growing fantasy sport last year was esports, according to CNBC, reporting that entry fees for its League of Legends fantasy games were up 59% year over year. The company reports 2.5 million entries in League of Legends contests since it launched in 2015, despite not marketing the fantasy games.

Lots of investment news. First, global publishing platform, Minute Media, which recently launched esports brand DBLTAP, announced that it has raised $17 million in a Series F funding round that comprises of new investors, including Goldman Sachs and Vintage Investment Partners, as well as existing investors including Battery Ventures, Dawn Capital and Qumra Capital. This brings Minute Media’s total funding to $77 million to-date.

Streaming platform Play2Live launched a venture fund with a focus on seed investments in gaming and esports projects. The initial value of the fund is $2M with a focus on projects from Eastern European countries and CIS. Each project will receive $50K to $150K of investment.

Esports fan engagement platform Quarterback has reportedly raised $2.3M in seed funding, with companies such as BITKRAFT Esports Ventures, Crest Capital Ventures, Deep Space Ventures, and UpWest Labs buying in. Funding will be used for “further development of the platform and to accelerate the company’s growth on a global scale.”

INDUSTRY

Take-Two Interactive Software reported results for its fourth quarter and fiscal year 2018, noting that net revenue hit $450.3 million, as compared to $571.6 million in last year’s fiscal fourth quarter. Recurrent consumer spending grew 42% year-over-year and accounted for 44% of total net revenue, while digitally-delivered net revenue grew 8% to $301.4 million.

A new study by the Entertainment Software Association found that more than two-thirds of American parents play video games with their children at least once a week. The report, titled 2018 Essential Facts About the Computer and Video Game Industry, found that 70% of parents believe video games have a positive influence on their children’s lives, and that the overwhelming majority of parents trust video game ratings and parental controls.

Sony’s E3 press conference will spotlight four titles, according to Sony Interactive Entertainment Worldwide Studios Chairman Shawn Layden, on the PlayStation Blogcast, with deep dives into upcoming titles Death Stranding, Ghost of Tsushima, Spider-Man and The Last of Us Part II. The event is set to take place on June 11 at 6p PT and will be streamed on Twitch, Facebook, YouTube, and PlayStation’s website.

Speaking of which, Nintendo’s E3 showcase is opening the doors for fans to book play slots for the upcoming Super Smash Bros. Attendees will have two experiences to choose from: they can either reserve a ticket to play against people casually “for fun,” or play “for glory” in a competitive elimination match. “We’re always looking to improve the ways people can maximize the fun they have with Nintendo at E3,” said Doug Bowser, Nintendo of America’s Senior Vice President of Sales and Marketing. “This year our focus is on the upcoming Super Smash Bros. game, and we want as many people as possible to give it a try.”

Rounding out the E3 news is the launch of Indie Heaven, presented by Good Shepherd, described as a new meet and greet event that will feature three days of demos across from the LA Convention Centre. The event will feature games and partners that include: Black Future ’88, Semblance, World War Z, Rune, Bendy and the Ink Machine, SoundSelf, Transcendent VR, Deep VR, Breath of Life, Microdose VR and DreamHack.

Hitting its second anniversary, Overwatch has now topped the 40 million player threshold, according to game director Jeff Kaplan in a developer update.

ROSTER MOVES

Following the announcement of the process to initiate a split of MTG into two companies, MTG and Nordic Entertainment Group, MTG has appointed new leadership team members for the new-look organization. The new MTG will now comprise MTG’s current esports (ESL, DreamHack and ESEA), online gaming (InnoGames and Kongregate) and digital video content (Zoomin.TV, Engage Digital Partners) operations, as well as other minority holdings (Comosa AG and BITKRAFT). Peter Norrelund will now serve as Co-CEO of DreamHack, working alongside the company’s current President and CEO Marcus Lindmark. Norrelund is currently EVP and CEO of MTG Sport and will continue to be an advisor to the President and CEO of Nordic Entertainment Group after the split.

Team Dignitas hired NBC Sports’ Michael Prindiville to serve as its new CEO, sources confirm following an ESPN report. Prindiville served as the co-creator and COO of the Universal Open as part of the company’s partnership with FACEIT. The team is applying for a franchise slot in the 2018 EU LCS, and seeking entry into the next Overwatch League season, according to the report.

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Consistent measurement in the video world, regardless of device, remains the single most difficult puzzle in today’s media landscape, and is far from being solved. That’s why Cynopsis is presenting the second Measurement & Data Conference, to help advance the conversation by having leading thinkers and doers examine the thorniest points in the discussion so we can all move forward – successfully.

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ON THIS DAY in 2001: Microsoft unveiled the Xbox while Nintendo delivers the GameCube at E3.

Trivia: Paul McCartney’s Hope for the Future marked his first song to be specifically written for a video game. What title was the song written for? (Email [email protected] with your answer and be sure to include your name, company and city.) Answer to Our Last Sports Trivia Question: In World of Warcraft, which race claims the isle of Kezan as their homeland?

Answer: Goblins. Kudos: Chris Davies-Virgin/London; Danny Araque/NY; Glen Ross/DC; Joey Olson-Lowe’s/Arlington; Gabrielle Pedro Fredrick-National Geographic/DC; Julie Schell/Charlotte; Jason Morrow-Toyota/Houston; Daniel Hanson/Vail; David Westberg-SAG-AFTRA Federal Credit Union/Burbank; Greg Dudsic/Venice; Tom Moore-Kalt Productions/LA; Vincent Leon/San Diego

Later — Chris

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