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As eSports Continues to Grow Apace, its Athletes and Startups are Winning Big

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As eSports Continues to Grow Apace, its Athletes and Startups are Winning Big
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The headquarters of G2 Esports’ Berlin team, on first glance, looks every bit what you’d expect from the home of seven young gamers. Beds are unmade, towels hang on bedroom doors and kitschy posters cover several of its bare, magnolia walls.

But while average student digs might have the odd Playstation, here gaming is life. Each inhabitant is deeply involved in his training, stopping now and then to take notes from the team’s two-man coaching staff.

It might not seem like the vanguard of a billion-dollar industry. But G2’s players are rich young men (every member of the team is male: gaming still suffers a yawning gender gap and has no women in its top hundred earners). Since its 2014 foundation in Madrid the brand has won a host of top-ranking tournaments. It is currently one of the continent’s biggest brands.

As eSports’ following skyrockets alongside its revenue, and teams like G2 chip away at its massive revenue potential, the gamers themselves are professionalizing along the lines of fellow athletes in traditional sports.

Games like League of Legends and Counter Strike are already about to take their bow at traditional sporting events. That, alongside a coming revolution in online broadcasting, is opening up huge chances for eSports firms to win big before competitive gaming truly hits the mainstream.

One of them, also in Berlin, has realized there are many ways to achieve that potential.

Jens Hilgers is something of an eSports celebrity. The 41-year-old German admits he “sucked at playing games” despite loving them. But what Hilgers lacked in playing skill, he has more than made up for in entrepreneurship. This year marks 20 since he began working in the industry. In 2000 Hilgers co-founder the Electronic Sports League (ESL) that today is an integral part of the eSports circuit.

In 2010 Hilgers took a backseat at ESL, moving from CEO to chairman of the board. It was then that he began developing DOJO Madness, a Berlin-based firm harnessing Big Data to help players improve their game.

I guess because of my lack of significant success or progress in the games, it became clear to me that there was a problem,” he told Red Herring. “Because I found that frustration with myself: when I lost a game, how could I win more?

DOJO Madness was founded in 2014. To date it has secured over $12m in funding, and offers solutions for professional players and amateurs. This April the company received $6m in Series A cash from investors led by The Raine Group.

BITKRAFT, the world’s first eSports-dedicated investment vehicle, launched a year later. Hilgers is a founding partner. It began with $18.5m to invest in seed-stage eSports companies. Today it has 15 firms in its portfolio: three from Asia, and six each from Europe and North America.

BITKRAFT’s Investments represent a cross-section of the industries that are booming around competitive gaming. Tier One is an advertising and media platform working in Southeast Asia. The Esports Observer is a widely-read eSports-dedicated web portal. Level99, based in London and Berlin, is a creative agency catering to the growing demand for teams to grow their brand and fanbase.

The stats behind eSports are enough to understand each venture. Competitive gaming has an audience of around 320m. The industry is set to grow by a compound rate of 30% until 2020 when, by some estimates, it could be worth $1.5bn.

Betting on eSports has flourished too. According to Nauroscope, an analyst, the lowest estimate for the total amount bet on eSports in 2016 is marked at $5.5bn. That figure will rise to $12.9bn by 2020. Esports betting volume already outpaces that of golf, tennis and rugby.

Twitch, the Amazon-owned streaming service for gamers, has over 1m daily streamers. Ticket merchandising revenues are expected to rise from $53m to $74m this year alone. That is enticing a new generation of web broadcasters keen to use eSports to increase their footprint.

It’s a development where big, online-first, video streaming portals are fighting for audience,” says Hilgers. “That’s the YouTubes, the Facebooks, the Netflixes. And for them eSports content is appealing as it commands a very attractive audience, as it’s still relatively unexplored.

Part of the attraction, he adds, is that eSports is a global phenomenon: it is played the same way in Berlin, or New York, as it is in South Korea – which could be considered the “spiritual home” of eSports. Soccer might be considered a truly worldwide sport. But there are few others.

Alongside the surge in revenues, eSports’ best practitioners are starting to live more like traditional athletes. At the G2 house there is a dedicated chef, and two non-playing staff ready to kick their charges into shape. “Definitely there’s a lot more focus on players’ health and wellbeing,” says the team’s 27-year-old manager and head analyst Chris Duff. “Years ago it was generally up to the players.”

Duff holds Scrum sessions each day from 1pm to 4pm. The players start their day at 11am, and finish at 10pm. Most weeks comprise six active days. It’s a grueling schedule. But the rewards are rich. Three years ago a top Counter Strike player may have earned $2-3,000 per month. Today it’s $20-30,000 (the highest salary in soccer is Cristiano Ronaldo’s $4.8m monthly salary from Real Madrid).

“It must be much better now, much easier because you have people to take care of your stuff,” says Joey “Youngbuck” Steltenpool, 26, G2’s coach. Even a couple of years ago when Steltenpool was playing for the Copenhagen Wolves, salaries were late and it took a Herculean effort to persuade staff to buy a new sofa. “Everyone was really on their own,” he says. “It’s way more professional…disciplined.

The Korean system, he adds, is “about a decade ahead in eSports. Professional gaming has been very normal there for around 10-15 years now because of (the 1998-developed, hugely popular game title) Starcraft: there’s a way bigger pool of people to choose from.”

But G2 is getting there. Players go to the gym and eat healthy diets. Intensive training means some pro gamers have careers as short as five years (that’s still not as short as the average NFL career, which is a staggering 2.66 years). But that is changing.

I do think it’s interesting that careers are way longer now, because everything is structured and you have coaches, managers, cooks and everything,” says Steltenpool. “So usually years ago it was really easy to drop motivation if you were on your own, and not much was taken care of. And now, since there are so many support staff inside the house, and outside the house in the organizations which are much better structured, players have way longer careers.

BITKRAFT has been trying to move early in finding companies to cater for eSports’ growing professionalism. Among its stable is H4X (pronounced “Hax”), a line of clothing stressing comfort and the ability to avoid muscle strain. Runtime is a special-made performance drink developed by Dr Lutz Graumann, a sports medicine expert who has worked with fighter pilots, among others.

In the past two or three years it became very obvious to professional teams and players that their game is really their mental game,” says Hilgers. “And a mental game, in order to perform top mentally, you need to be fit physically. So your physical training regime, your diet, is now something people understand as making a real difference.

Compared with 20 years ago people are putting far more effort into being a top player in the game,” he adds. “There’s more competition, which elevates the skill ceiling overall in these games. And naturally you see people using every possible avenue to improve their skill.

The eSports merchandising arena is set to explode alongside the industry at-large. Steve Volpone, CEO of Big Block, recently wrote that “We need to begin collaborating on the lifestyle, fashion and other spinoffs that eSports’ huge audiences will want.

Big traditional sports brands have begun wanting a slice of the action. Soccer teams like FC Schalke and Paris Saint Germaine have developed their own eSports teams. Others have tried to buy existing success.

Los Angeles-based Cloud9 recently secured a $25m Series A funding round from investors led by the Founders Fund, and including the World Wrestling Entertainment organization (WWE) and Major League Baseball player Hunter Pence.

Last year Team Liquid, another of the industry’s big brands, was bought by a consortium including Steve Case, Tony Robbins and Magic Johnson.

They are trying to jump on a bandwagon that is beginning to get recognized by the biggest organizations in traditional sports. Last weekend it was announced that the International Olympic Committee (IOC) is exploring the possibility of including eSports in future Olympic Games. It will be included at the 2022 Asian Games in Hangzhou, China. The IOC are looking to include eSports two years later, at the Paris games.

Hilgers thinks the industry is at a point where those who can win success now, will consolidate power well into the future. “The costs of building top-level eSports teams have increased significantly in the last three years,” he says.

Teams don’t just need a good brand and content strategy to attract big players. They need huge sums of cash. The barrier to entry is soaring. “A few years ago (teams) would make $1-3m revenue perhaps,” he adds. “Now it is substantially more.

I think that helps a lot in creating a way more stable ecosystem of teams that really matter,” says Hilgers. “The really interesting part is now how many of the teams will be teams who are around now?

It certainly appears that G2 Esports will be there. This August the team won an undisclosed funding round from a consortium including Everblue Management and Andre Gomes, a midfield player for soccer giant FC Barcelona. This week it beat Danish side Astralis to take third place, and $60,000, at the EPICENTER Counter Strike: Global Offensive (CS:GO) tournament in Saint Petersburg, Russia.

G2 is now the tenth-ranked League of Legends team worldwide (South Korean giant SK Telecom 1, which won in Saint Petersburg, heads the list: the top ten includes four Korean, and four Chinese, brands). It places second at CS:GO.

Whatever the rankings say, however, the biggest winner is eSports itself. And, as it grows like few other industries on earth, a burgeoning collection of startups are placed to pounce on its imminent tech and merchandising riches.

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Asia

Team ATK Oshun excels at 2024 Online Championships held on 13 April 2024

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Mind Sports South Africa’s (MSSA) 2024 Online Championships held on 13 April 2024 showed sterling results.
The championship was yet another chance for many esports athletes to qualify for MSSA’s National Team Trials to be held on 25 May 2024 at which the team will be selected to officially represent South Africa at the African Qualifiers which lead up to IESF’s 16th World Esports Championships to be held in Riyadh, Saudi Arabia in October and November 2024..

All Registered Players who have finished in the top three places, or the top 20% – whichever is greater, are entitled to enter trials.

However, it must be remembered that all players must have a valid passport to participate in the National Team Trials.

It was indeed exciting to watch just how much all the female teams have improved.

Team ATK Oshun (ATK Club Sport) being a female team astounded all with their skill and sportsmanship. The team demolished all ATK Club Sport opposition to ultimately won the premier event overall and qualify for the National Team trials to be held on 25 May 2025.

IESF’s 15th World Championships will be played to the following titles:

  • Counter-Strike 2
  • Counter-Strike 2 – Female division
  • DotA 2
  • eFootball
  • Mobile Legends, Bang Bang
  • Mobile Legends, Bang Bang – Female division
  • PUBGM

The high standard of play saw 37 Registered Players from six provinces being awarded Provincial Colours. Only Limpopo, Free State, and Northern Cape did not have Registered Players who did not earn provincial colours.

Title Name of player/team Club Provincial Colours awarded
Clash Royale – Premier Johan Coetzee Middies Mpumalanga
Clash Royale – High School Aryan Maharaj PR0NHS
Counter Strike: 2 ATK Oshun
Kaylee Ludick ATK Club Sport Gauteng
Jessica Eleez Greeff ATK Club Sport Gauteng
Christin Brazier ATK Club Sport Gauteng
Megan van der Westhuizen ATK Club Sport Gauteng
Kayhla Rose Calder ATK Club Sport Gauteng
DotA – Premier ZAG DOTA 1
Suhail Khan ZAG Academy Gauteng
Travis John Waters ZAG Academy Western Cape
Mark Kilian Lehle ZAG Academy Gauteng
Mohammad Dhooma ZAG Academy Eastern Cape
Nicholas Dammert ZAG Academy Gauteng
eFootball – Premier Aslam Parker PES Society Gauteng
FIFA 24 – High School Daiyaan Hendricks PES Society Western Cape
Mobile Legends – Premier
Mavericks
Matthew Tatalias Mavericks Gauteng
Damian Bransby Mavericks Western Cape
Preshan Pillay Mavericks Gauteng
Mohammad Azhar Ansari Mavericks KwaZulu Natal
Taygan Gabriel Mavericks KwaZulu Natal
Luke Green Mavericks Western Cape
Mobile Legends – Premier – Female
AHG
Je’nielle Cavanagh PES Society Western Cape
Inez Pringle PES Society Western Cape
Salma Parker PES Society Western Cape
Ra’isha Prout PES Society Western Cape
Fatimah Prout PES Society Western Cape
Mia Anthony PES Society Western Cape
PUBGM
Team uEnvy
Richard Henry ZAG Academy Eastern Cape
La-eeq Arendse ZAG Academy Western Cape
Kyle Dudley ZAG Academy Western Cape
Clayton Leak ZAG Academy Western Cape
Rocket League – Premier – 1 v 1 – Premier Nathan Strange Hoërskool Klerksdorp
Rocket League – Premier – 1 v 1 – High School Luther Peens Hoërskool Klerksdorp
Street Fightter V – Premier Marnus van der Merwe Hoërskool Klerksdorp North West
Tekken 8 Stasch Cloeta Team PlayBell Western Cape
Valorant – Premier
TuksValorant
Tapiwanashe Keith Matema TuksEsports Gauteng
Kyle Halvorsen TuksEsports Gauteng
Jaden Connor Swarts TuksEsports Gauteng
Ronald James Tyler Wheeldon TuksEsports Gauteng
Alejandro Luca Sartini-Kruger TuksEsports Gauteng
Armand Pierre van der Colf TuksEsports Gauteng
Sportsmanship Award Je’nielle Cavanagh PES Society
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Asia

Maharashtra Government rewards state’s Asian Games 2022 Esports athletes with INR 10 lakhs; marks historic moment for Indian Esports

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In a groundbreaking move, the Directorate of Sports and Youth Services of the Government of Maharashtra has rewarded a significant amount of INR 10 lakhs to each Esports athlete of the state who represented India in the Asian Games 2022, held in Hangzhou. This marks a historic moment for Indian Esports, as it is the first time any state has included Esports alongside mainstream sports in prize money rewards for its state players in a major tournament. The recipients of this monetary reward include Darshan Bata, captain of the DOTA 2 team, along with his teammates Krish Gupta, Ketan Goyal, and Shubham Goli, as well as League of Legends athlete Samarth Trivedi.

Expressing his gratitude, Darshan Bata, the captain of the DOTA 2 team who hails from Mumbai, said, “I would like to express my sincere thanks to ESFI and the Maharashtra government for honoring us and recognizing and supporting Esports.”

Esports made its debut as a full-fledged medal event at the Asian Games 2022, where a total of 476 athletes from 30 different countries competed for gold medals across seven titles. India participated in four of these titles, including DOTA 2, EA Sports FC Online, League of Legends, and Street Fighter V: Champion Edition.

“It has been a great experience at Asian games, I am grateful for the support I received from the Maharashtra government and I really appreciate the efforts ESFI has contributed to our journey,” stated Ketan Goyal of Pune who was a part of the DOTA 2 team at the Asian Games 2022.

The talented Indian contingent for the Asian Games was sent by Esports Federation of India (ESFI), who had organized open for all nationwide online qualifiers to select the best and most deserving athletes to compete for the nation at the tournament.

“Really happy to see that Esports is getting recognized and we are being aided by the government. Thank you for the support to Maharashtra Government and a big shoutout to ESFI for giving us this opportunity to represent India in the Asian games,” highlighted Krish Gupta of Pune, a member of the Indian DOTA 2 team.

The League of Legends team, in particular, achieved a historic fifth-place finish at the 19th Asian Games after competing against top-tier teams from around the continent.

“I am really grateful to the Maharashtra government for providing us with the financial support. It is amazing to see Esports being recognized by the Government. A huge shoutout to ESFI for giving us the opportunity and platform to compete at the Asian Games 2022 in Hangzhou,” commented Samarth Trivedi of Thane who played a pivotal part in the country’s performance in League of Legends at the tournament.

Prior to the 19th Asian Games, India had also secured a remarkable bronze medal at the Commonwealth Esports Championships in DOTA 2, showcasing the country’s prowess in video gaming on the international stage.

“Thank you ESFI and team for all you support throughout Asian games 2022. We are really blessed and honored by Maharashtra Government for supporting Esports players and considering Esports in events like Commonwealth and Asian Games,” noted Shubham Goli, a resident of Pune who represented India at both the Commonwealth Esports Championships as well as the Asian Games 2022 in DOTA 2. The latest FICCI-EY report titled ‘#Reinvent: India’s media & entertainment sector is innovating for the future, India is expected to have 20 international teams by 2024.

The Maharashtra government’s recognition and support of Esports signals a significant milestone in the journey towards mainstream acceptance of competitive gaming as a legitimate sport in the country.

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eSports

eSports in the CIS region , Q&A w/ Viktor Block, Senior Sales Manager/PandaScore

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eSports in the CIS region , Q&A w/ Viktor Block, Senior Sales Manager/PandaScore
Reading Time: 5 minutes

 

Esports has long been popular in the CIS region, with various top-tier teams and players all calling it home. How has the landscape evolved over the last few years? Have any particular trends emerged that have surprised you at all?

Esports boomed in the CIS region in 2008 when Multiplayer Online Battle Arena (MOBA) games became really popular. While esports had been a thing as far back as 2003, the rise of games such as Counter-Strike and DOTA2 was a major catalyst for the upward trajectory the sector has been riding ever since. In recent years, the infrastructure needed to support esports has improved drastically across the CIS region, including the construction of the Pixel Esports Arena in Minks, Belarus, and the Cyberspace Arena in Almaty, Kazakhstan, both of which hold top-flight contests. Internet connectivity has also improved, while support from local and international sponsors such as Monster Energy, Red Bull and War Gaming have provided funds for further investment while also driving awareness. Ultimately, this has seen the landscape evolve into a thriving industry with lots of opportunities for further growth.

In terms of trends, and especially relating to esports betting, I’ve been surprised by the high demand for betting on console games – we call them eBattles and they include disciplines such as eSoccer and eBasketball. I think this is just a natural development that has occurred off the back of strong demand for video game content, which is often the bridge between traditional sports and esports.

 

What factors have contributed to esports’ growth in the CIS over the past few years?

One of the biggest factors for me is that teams have become more professional and are now training and playing in well-run clubs. This takes place in dedicated buildings and rooms, set up with high-speed internet and the absolute best gaming equipment. Player salaries have also gone up, which has increased the calibre of players taking part in contests across the region, taking competitiveness to the next level. Today, many CIS players now play for high-ranked teams such as Virtus.pro, Team Spirit, Betboom or Na`Vi which compete on the international stage. This in turn is helping esports grow across the CIS region.

 

Given how many countries are in the CIS region, can you walk us through some of the biggest regulatory differences when it comes to betting on esports? And how does PandaScore navigate these changes?

The legality of betting and esports betting differs from country to country within the CIS region. Some are super strict or even prohibit gambling, while others take a more liberal approach, regulating the activity and licensing operators. Let’s take a look at some of the biggest markets and their approach.

In Ukraine, esports has been recognised as a sport since 2018 and in 2020 the country regulated and licensed gambling for the first time. The law focuses mostly on standard betting – sports and casino – but is likely to also include esports betting given that esports is a recognised sport in the country with tier-one Ukraine sportsbooks like Favbet and Parimatch offering it to their players.

Kazakhstan has a growing gambling industry with betting shops and casinos operating in major cities such as Almaty and Nur-Sultan. Gambling is regulated by the Ministry of Culture and Sports and while the regulatory framework is somewhat restrictive, sports betting – which is likely to include esports betting – is permitted.

Navigating the constant changes in betting regulation across the CIS region can be challenging, so we make sure to keep up to speed with the latest developments by monitoring legislative updates and amendments to regulatory guidelines. We also track industry trends and best practices to anticipate regulatory changes ahead of time, allowing us to adapt quickly if needed. This can involve benchmarking against competitors, attending conferences and networking with key stakeholders.

 

In your view, are there any unique opportunities for the expansion of esports and esports betting within the CIS region? And how does this differ to other regions?

It’s important to understand that CIS, especially Ukraine and Kazakhstan, play by their own rules. By that I mean they are very different to other esports markets, so don’t think what works in Italy will work in Ukraine. For example, while League of Legends is very popular in Europe, in CIS, it’s Dota 2 that takes the top spot. But for those who can understand the region and each market, there are plenty of opportunities to explore.

Let me elaborate. Dota 2 is thriving in the broader CIS, with regular tournaments and events attracting large audiences both offline and online. teams like Natus Vincere (Na’Vi), Virtus.pro and Team Spirit have achieved significant success in Dota 2 competitions, contributing to the game’s popularity in the region. While Dota 2 is big, other video games also enjoy significant popularity, including CS2, World of Tanks and Fortnite among others.

Operators need to consider this when deciding their markets and odds, marketing strategies and plans for player engagement.

 

What would you say is the key to creating a successful esports product for a CIS audience?

Understanding layer preferences in each market and delivering an experience that exceeds their expectations. For the CIS region, this means focusing on Dota 2 – this is a game that offers deep and strategic gameplay requiring teamwork, communication and skilful execution of plans and strategies. Its competitive nature appeals to gamers as they enjoy the challenge of multiplayer experiences – this goes back to the original MOBAs back in 2008. These factors must be present in the esports betting experience offered to players – at PandaScore, this means a comprehensive Dota 2 offering that covers markets such as Kills, Towers, Roshans and Barracks, with players able to challenge themselves in a betting competition against others.

Support is also key to delivering a quality player experience. We offer round-the-clock assistance and are regularly rolling out updates to improve the experience players receive when betting on esports at sportsbooks using our data, odds and betting tools such as our Bet Builder. We are always working hard to expand our offering to cover the most in-demand games including CS2, Valorant, Call of Duty and many more.

 

What trends or developments do you anticipate shaping the future growth of esports in the CIS region over the next few years?

The industry will continue to grow and become more professional. Esports is different to traditional sports and it still lacks recognition in some markets, even though it is considered an official sport in a growing number of countries across the CIS region. I think as it evolves, more governments will provide more support for esports as it brings tremendous economic, cultural and social benefits. This could include funding for esports initiatives, rolling out regulatory frameworks, helping to foster partnerships with esports organisations or simply recognising it as a sport.

The continued proliferation of smartphones across the region will be a further catalyst for esports growth. Titles such as PUGB Mobile, Free Fire and Mobile Legends: Bang Bang will attract large audiences and provide new opportunities for teams, players, sponsors and other stakeholders to explore. This is a really exciting time for esports and esports betting in the CIS region, and PandaScore is thrilled to be part of it.

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