Esports sponsorship deals are set to generate $636.9M in 2020, with 16.6% CAGR. 

According to researchers at SafeBettingSites.com, esports sponsorship deals are expected to generate around $636 million in 2020, and as the top revenue source for the industry, sponsorships are set to grow at a compound annual growth rate of 16.6%. 

Sponsorships and media rights combined now account for 75% of all esports revenue, expected to amount to some $822.4M in 2020, and set to grow to $1.2 billion by 2023. In 2019, sponsorship deals accounted for 42% of the esports industry’s total revenue of $1.1 billion – a CAGR of 34.8% from 2018. 

However, despite the prominence of sponsorships, digital revenues are the industry’s fastest growing source – growing at a breakneck CAGR of 72.4%, and expected to yield $21.5M in 2020. 

As anyone who reads AYO.NEWS will know, esports is now attracting sponsorship deals from both endemic and non-endemic brands. According to Grand View Research, there were 76 non-endemic deals entered into in 2019, with Nike’s $144M deal with League of Legends Pro League standing out. Another deal, between Intel and ESL, was also worth $100M. 

To put things in perspective, in 2014, esports was a $194M niche market, but by 2019 had become a $1 billion industry. PwC expects esports industry spending to hit $1.8 billion by 2023. 

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The Global Esports Federation (GEF) has announced partnerships with the International Surfing Association, and World Archery. 

Singapore-based, Tencent-backed GEF is working to build a strong network and reach new audiences through expanding its membership base, especially with traditional sports organisations. 

Over the last few months, the federation has announced partnerships with sporting organisations including the Olympic Council of Asia, ODESUR, World Taekwondo, the International Tennis Federation, and the Commonwealth Games Federation.

The federation has also been strengthening its relationship with esports athletes and players, for example, welcoming Japan’s top gamer, Hajime Taniguichi aka “Tokido”, earlier this month. 

Discussing the news President of Global Esports Federation, Chris Chan, said:

“The interest and development of esports continues its rapid rise worldwide with greater convergence between esports and sport. We welcome the interest and support from the International Federations to join the esports community and work on evolving physical sport experiences in the digital age.

“There are powerful opportunities to collaborate with our technology partners through the Global Esports Federation’s #worldconnected platform and connect with the world’s youth.”

While President of International Surfing Association (ISA), Ferndando Aguerre, added:

“We live in times where virtual gaming and esports are taking on a whole new relevance. The rapid growth of esports also represents an opportunity for surfing and the ISA to access and engage new audiences. We are optimistic the partnership with the GEF will help position us on the wave of virtual sport, fulfilling the ISA’s mission to drive accessibility and universal participation.”

In June, GEF also announced a partnership with international advertising agency Dentsu, to help promote the global development and growth of esports. 

AYO.NEWS says:

Though many in the esports community still have reservations about the corporate nature of GEF (something not helped by its stuffy and dull branding), it is certainly putting a lot of effort into establishing strong global foundations through forging links with traditional sports organisations. 

Of course, whether this is really going to be effective at promoting global esports, or is simply because the GEF is dominated by those from traditional sports backgrounds, remains to be seen…

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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ESL and Acer have revealed the CS:GO Predator League is set to expand into the EMEA region later in 2020. 

Named after Acer’s range of gaming peripherals, the Counter-Strike: Global Offensive Predator League was initially launched in the Asia Pacific region, and is aimed at grassroots players.

The expansion will cover Germany, the Netherlands, Sweden, Denmark, and the Middle East,  with countries getting their own online tournaments, and semifinals and Grand Final rounds broadcast by popular local influencers. Prizes will include the latest cutting-edge Predator gaming hardware. 

Competitions will be operated by ESL through its ESL Play platform, in collaboration with Acer’s Planet9 social gaming platform – which will be providing young talent with pro-coaching session from world-class coaches, including Nooky (Germany), Pita (Sweden), Pimp (Denmark), ChrisJ (Netherlands) and hoveRR (Middle East).

The Predator League will also be serving as a promotional vehicle for local retail partners to offer promotions to the gaming community. 

Commenting on the news CEO of ESL, Ralf Reichert, said:

“The grassroots community is core to the growth of esports and providing young talent the platform to maximise their potential has never been more important. The Predator League will act as a gateway for anybody to climb the esports success ladder. 

“Acer continues to invest in the long-term growth of esports and we are delighted to help and expand our existing partnership with Acer and the launch of their first EMEA online league.”

While Vice President of Acer Europe, Middle East and Africa, Hajo Blingen, added:

“We are excited to launch the Predator League, as a natural evolution from our long-term partnership with the Intel Extreme Masters and ESL to attract young esports talent by creating new online formats. 

“As the world’s leading gaming brand, Predator has already a strong commitment to the CS:GO community and gaming fan base. Driving continuous innovations, such as our nextgen esports platform, Planet9, the Predator League will also provide retail partners a platform to promote Predator products to the community through exclusive promotions.”

AYO.NEWS says:

It’s great to see ESL and Acer enhancing opportunities for young talent to develop like this, and it’s also going to be a great platform for smaller local retailers and brands to enter the esports scene. 

Staying with ESL and Europe, last week the company announced it had extended its partnership with GamingMalta – with the Mediterranean country now set to host the entire ESL Pro League in 2021. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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Las Vegas-based gambling company GameCo has unveiled its full-service esports betting solution. 

GameCo’s offering is specifically designed for casinos and sportsbooks operating in regulated US markets, and was created in partnership with data platform GRID, oddsmaker 10Star, and iGaming software developer Askott Entertainment (recently acquired by FansUnite). 

A ‘plug-and-play’ solution, GameCo’s offering includes betting, data, video streaming services, and odds risk management, and will be operated under GameCo’s recently launched esports betting brand, iGameCo. 

Discussing the new offering CEO and Co-founder of GameCo, Blaine Graboyes, said:

“We’re proud to lead the industry forward by providing a truly end-to-end, fully managed solution for casinos and sportsbooks in the US looking to capture a piece of the exploding esports betting opportunity. 

“We‘ve recently seen the gaming and esports categories skyrocket in popularity particularly among younger, untapped audiences, and now is the time for casino operators to act and set the stage for the future of sports gambling.”

GameCo currently holds licenses in more than 25 jurisdictions across North America and Europe. 

AYO.NEWS says:

As a company, GameCo perfectly reflects how the worlds of traditional iGaming and sports betting are merging with video gaming and esports. GameCo itself is a trailblazer in terms of introducing skill-based gaming elements to the casino setting, and its new brand and partnerships with leading esports betting suppliers, is helping it position perfectly to capitalise on the rapidly changing tastes and expectations of gamblers.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

BITKRAFT Ventures has raised $165M to invest in gaming, esports, and interactive media. 

The venture capital fund has confirmed the close of BITKRAFT Venture Fund I at $165m – beating the initial $125m target by some $40m. 

The BITKRAFT Ventures Platform has received backing from an impressive global investor base, including Carolwood, the family office of Bruce Karsh; Declaration Partners, the investment firm backed by the family office of David M. Rubenstein; JS Capital, the investment firm of Jonathan Soros; alongside corporate investors including adidas, WPP, Advance, and Logitech. 

Reflecting on the success of the fund, BITKRAFT Ventures founding general partner, Jens Hilgers, said:

“We are grateful to our investors for their confidence in our team’s ability to identify talent, trends, and opportunities in the gaming and esports space. At BITKRAFT, we don’t just support forward-thinking entrepreneurs with capital, but also provide experience, resources, and our global network. While we are living in challenging times, our industry is experiencing strong tailwinds and unprecedented opportunity. There is no better time for BITKRAFT to invest.”

A growth megatrend still in its early innings, video games continue to gain share of consumer entertainment time and discretionary spending. Titles like Fortnite and Minecraft define modern pop culture and have become social networks and economies of their own.

Gaming, a $160B industry with a global audience of 2.7B gamers, already stands larger than music and film combined and is on track to surpass TV as the largest media category. In addition, COVID-19 has brought significant additional growth, as well as a newfound societal appreciation for video games as a form of social connectivity beyond physical barriers. 

BITKRAFT launched its inaugural Pre-Seed Fund in 2017, and including this newly closed Venture Fund, has built a portfolio spanning more than 50 companies across North America, Europe, and Asia.

Led by industry veteran Jens Hilgers, founder and former CEO of ESL and co-founder of esports team G2 Esports, BITKRAFT has its roots in esports, but gradually expanded its investment scope to now fully cover gaming and interactive media. 

Co-founding general partners Malte Barth and Scott Rupp, as well as recently hired partner Moritz Baier-Lentz, round out the team in Los Angeles, San Francisco, London, and Berlin and collectively have more than 70 years of gaming entrepreneurship and investment experience.

The team’s early-stage investment focus in game studios, interactive platforms and horizontal technology is informed by the idea of Synthetic Realities®—BITKRAFT’s vision of a future that embraces the increasing convergence of the physical and digital worlds.

AYO.NEWS says:

With the world’s traditional industries reeling from the COVID-19 lockdown induced economic crisis, BITKRAFT Ventures is proving there’s still plenty of investment opportunities in the gaming, esports, and interactive media sectors. 

Earlier today we reported BITKRAFT Ventures led a $4.3M Series A funding round for Indian multi-game platform Gamezop. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

North American esports organisation Dignitas has created a new platform ‘_FE’ to promote opportunities and education for women in gaming. 

The announcement was made today to coincide with Women’s Equality Day. Led by Dignitas’ Vice President of Talent, Heather “sapphiRe” Garozzo, the new platform is called ‘_FE’, and will be launching several initiatives over the next three months. 

These will include:

• Industry town halls addressing significant matters affecting females in gaming
• A community website devoted to housing relevant female gaming content, including calendars of female gaming competitions, resources, announcements and media coverage
• Complimentary, virtual educational seminars for aspiring professional female gamers and streamers in content creation, social media and media training, brand analysis and more
• Female and co-ed competitions
• Online social community via discord
• Creation of a female-focused gaming-centric clothing line
• Live events at dignitas’ headquarters in los angeles and greater new york city
• The signing of new female competitors and creators

Discussing the initiative Garozzo said:

“Despite a significant increase in female gamers, streamers and fans, there is still a lack of representation in media, on live streams and in competition. Through _FE we aim to ensure female gamers have the resources, role models and healthy community to empower themselves and cultivate their passion as competitors and content creators.”

While Founder and leader of Dignitas Fe, Emmalee “EMUHLEET” Garrido, added:

“As a young female gamer trying to find my place in the esports community, I didn’t have any females gaming role models to admire. 

“Gaming has made a significant impact on my life and truly opened the world for me – from the more than 10 countries in which I’ve competed to the teammates from 4 countries and followers from over thirty countries throughout the globe as some of the most important relationships in my life. I’m proud that _FE will provide a platform for my team and I to share what I’ve learned over the years as top female competitors and inspire the next generation of female gamers.”

AYO.NEWS says:

The motivation behind this project is clearly admirable, but as I’ve said before, this approach is risky because it can actually entrench division. Of course, its supporters will argue this isn’t the case, and initiatives like this are harmless efforts to “encourage more female gamers” etc, but they are questionable arguments. 

At this point, I was going to embark on an extensive argument about exactly why they are questionable arguments, but then I realised I’d made similar cases many times before, regarding all kinds of equality and diversity issues, and come to a frustrating conclusion; the kind of mindset that leads people to think these kinds of initiatives are a good idea in the first place is so fundamentally different from the mindsets of those, like myself, who think they aren’t, that any attempt to argue inevitably leads to further polarisation – which is exactly what I’m against in the first place.

Personally, I hope we are soon at a point where no one will feel initiatives like this are even necessary, and everyone is able to feel welcome in the gaming world and industry.

Staying with Dignitas, last week the organisation enhanced its partnership with EEG-owned esports betting platform VIE.gg. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020