The rapid expansion of the esports industry, fueled by advances in technology and shifting consumer habits, has led to a significant transformation within digital entertainment. This paper explores the impact of corporate mergers, technological developments, and the integration of wagering systems on the growth of esports. It analyzes the convergence of gaming and streaming platforms, outlining how this has created new opportunities for monetization and engagement. The research further examines how esports wagering is gaining legitimacy within mainstream entertainment while identifying regulatory challenges and market dynamics that influence this sector. Through a review of key case studies and industry trends, this paper highlights the role of mergers in driving innovation and reshaping the competitive landscape. It also delves into prospects for esports wagering, forecasting potential trajectories based on current developments. By integrating data from multiple industries, the analysis offers insights into how esports could continue to evolve as both a spectator sport and a viable business model, with implications for stakeholders across the entertainment, technology, and wagering sectors.