In Fantasy eSports: Everything is Virtual Except the Money

Benny Evangelista of the San Francisco Chronicle wrote a piece this past weekend about the explosive new industry: Fantasy eSports (or competitive video gaming).  While the games are virtual, the cash is real.

Evangelista is not just talking about the money that can be won on websites catering to the industry, he is also making reference to the investment money being pumped into two of the sector’s leading firms: Vulcun and AlphaDraft.

And it’s not just Fantasy eSports Evangelista examines.  Unikrn, a Seattle e-sports betting site, says its players are wagering as much as $40,000 a month.

 “It’s lot of fun,” said the New York area resident, who declined to give his real name. “There are games happening at times when traditional sports aren’t played, like late at night or on weekday afternoons. If you do your research and make smart picks, there’s a lot of room to make money.”

Evangelista writes: To casual or non-sports fans who don’t understand the lure of regular fantasy sports leagues, fantasy e-sports will be even more of a puzzler. But to fans of fantasy leagues or video games, they will make complete sense.

Both are based on the dream of becoming a team owner or manager, assembling teams of players whose success or failure during games translate into fantasy points.

Fantasy e-sports players score with video game pros who get the most kills, head shots or captured flags.

Last month, Sportsbook.ag became the first North American-facing online wagering site to begin offering betting on eSports.   Unikrn may be based in the U.S. but it only accepts wagers from those living in Australia, the UK and Ireland.

The investors in both Fantasy eSports and the gambling sites include former NBA Commissioner David Stern (AlphaDraft) and his arch-nemesis, Dallas Mavericks owner Mark Cuban (Unikrn).

“We really believe in it as the next big thing,” said Josh Nussbaum of Metamorphic Ventures, a New York venture capital firm that led the funding round, which included former NBA Commissioner David Stern.

- Aaron Goldstein, Gambling911.com