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MARK ROBSON


Isle of Man: 2016/17 2


Mark Robson, head of e-gaming, Isle of Man’s Department of Economic Development, reflects on 2016 and looks ahead to 2017.


016 saw the e-gaming landscape continue to transform as disruptive technologies grew in popularity, business models evolved and the regulatory landscape shifted. So,


what will 2017 hold for the industry? Will it be another year of unprecedented change?


Continued expansion of eSports


In 2016, eSports continued to bolster its position alongside traditional sports and attract new audiences. The rise of the sector can be illustrated by the launch of eSports divisions by some of the biggest brands such as ESPN, Activision Blizzard, and Electronic Arts. Also, Major League Baseball’s streaming subsidiary BAM Tech and Riot Games are reportedly close to signing a new deal valued at more than $90 million, for streaming League of Legends competitions. Various factors have contributed to the


exponential growth of eSports, but the interest from sponsors and advertisers has been one of the most notable. A significant part of the sector’s revenue is derived from these sources. Non-gaming oriented brands are being drawn as well. For example, clothing brand MeUndies announced it is sponsoring Immortals which is one of the biggest new eSports organisations, acquiring a dominant League of Legends team. What makes eSports an attractive


proposition for players as well as the audience? It is the perfect synergy between online and offline engagement, as it has grown into a huge spectator and live event industry. Tens of thousands of spectators come from all across the world to attend the tournaments and watch elite gamers compete in round-by-round play. eSports is now well-established, having


transformed from a relatively niche industry to a sector which has changed the way competitive games are played and viewed. We think it is primed for continued exponential growth. In fact,


SuperData Research analysts believe the market will grow to over $1.9 billion by 2018. Very recently, William Hill U.S., in partnership with the Downtown Grand Casino, announced that it had received approval to offer legalised wagering on eSports. It would be interesting to see if other sportsbooks follow suit.


Growing adoption of immersive technologies


The e-gaming industry has been watching the rise of augmented and virtual reality (AR and VR) intently, eager to tap into the fantastic opportunities it offers. With specially equipped eyewear, video and sound and virtual images, players can enjoy a real-life experience. The industry believes that AR and VR help it


target the coveted millennial generation, and sees huge potential in it. Gaming software developers have taken the lead in


experimenting with these technologies. At this year’s ICE Expo, Microgaming used the Oculus VR DK2 headset and leap motion hand- tracking system to provide players with an experience of a virtual roulette table, complete with a robot croupier. Whilst there are still the cost barriers, AR and VR will definitely play an important role in the industry in 2017, as games evolve into a mix of social, skill-based and betting game hybrids.


The convergence of blockchain and e-gaming


Blockchain or the distributed ledger


technology has gained significant traction over the last few years. It has various applications across all sectors. In fact, a recent report from Moody’s Investors Services named 120 blockchain projects being explored by various companies, and then offered 25 top use cases for the technology. In online gambling, there are various


ways blockchain can help businesses. In terms of data and auditability, it creates immutable data records which can help track all operations by a client and/or per game. For example, it makes it easier to analyse any gambling patterns, prevent fraud and exploits, reward clients, provide audit reports. Furthermore, blockchain can bring transparency and provable fairness of the game, and thereby, create more trust between clients and the game operator.


Conclusion There is no doubt that 2017 will be a


pivotal and exciting year for the industry, as technology changes e-gaming at a phenomenal pace. As we approach the next year, the Isle of Man remains confident and positive in its outlook. We will continue to support high-quality businesses with the right values that mirror our own. Player protection will remain the heart of our offering as well as strategy for future growth.


DECEMBER 2016 55


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