Challenges eSports entrepreneurs will face in 2022

The end of the year is approaching fast, and many entrepreneurs are looking ahead to 2022. For some, this will mean starting a new business or expanding an existing venture. One of the most popular inquiries we have is starting a business in the eSports sector. eSports gambling, payments, software, streaming, and much more are all booming businesses right now. But what challenges are there in the year ahead, and how can you be prepared?

Increased competition

What was once a niche sector has become an exciting vertical in the entertainment market. eSports and eSports betting has undergone a massive boom since the start of the COVID-19 pandemic, accelerating an already growing area. As with any emerging and developing sector, once people realize it is a good investment, they all want a piece of it. This means that those setting up in the eSports sector in 2022 will have a fair bit of competition. The market is far from saturated, but more and more operators are moving in each day.

That’s not to say you should not start an eSports business, far from it. Instead, you need to fine-tune your niche and make sure what you are operating is original, useful, and valuable. There are still many opportunities in the sector and plenty of clients to go around! Hot areas for 2022 include payments, skins gambling, eSports gambling, and streaming/gambling services.

More regulation

In some ways, the eSports sector is becoming a victim of its success. Its growing popularity and transition from the underground to the mainstream has made regulators sit up and pay attention. For many years, eSports tournaments have taken place with little in the way of outside regulation, but some aspects of the sector are coming under more scrutiny. eSports gambling (and anything involving skins) is drawing more regulatory attention. This does not have to be a bad thing. Rather it signifies the maturing of the sector and acknowledgment from authorities that it is significant enough to be concerned with.

The truth is that the growth of the digital sector has brought with it a raft of threats and issues. Cybercrime, identity theft, and money laundering are just some of the problems faced by online businesses. As a result, measures to prevent and punish such crimes have been increased. This means more paperwork for you as an eSports business, but it also protects you and your clients.

To find out what your regulatory and compliance requirements would be, check with your corporate service provider.

Diversifying payments

One of the great features of a more digital society has been a diversification in payments. We are no longer limited to bank transfers or credit or debit cards. There are now countless ways to pay- app, QR code, digital currencies, digital wallets- the list goes on. 

This diversification brings with it challenges for operators. Which ones do you opt for to gain multiple customer exposure? There is no straightforward answer to this question. The more payment methods you can offer, the better. Including conventional methods like cards, as well as more modern alternatives like digital wallets, and at least a couple of cryptocurrencies will suffice if you are starting. 

Cyber security

Last but not least, with more people online than ever before and more online transactions, the threat of cybercrime is increasing as well. Hacking, ransomware, identity theft, credit and debit card fraud are just some of the threats facing consumers and operators. If you are running an eSports gambling site, you may also be at a higher risk. It is therefore essential for you to take all the necessary precautions to protect yourself and your customers.

This includes proper onboarding and authentication of transactions, firewalls and encryption, and even biometric authentication. You must also ensure that anyone you partner with- web developers, software providers, payment processors- are reputable and licensed if necessary.

Whatever kind of eSports business you want to set up, Fast Offshore can help. We are experts in online gambling and betting and emerging areas such as blockchain and cryptocurrency, eCommerce, and other forms of entertainment. As corporate service provides, we can incorporate your company, manage structuring and payments, apply for licenses and help you stay on top of your ongoing obligations. To get your eSports business ready to launch in 2022, contact us today.