How Much Money Does Esports Make?
A comprehensive guide on how much money is generated in the esports industry, including tournaments, sponsorships, advertising, and more.
Esports Earnings
Esports is a huge industry with tournaments that offer eye-popping prize pools. But how much money does the average esports player make? And how do the earnings compare to other professional athletes? We break it down in this article.
Global esports revenue
Esports is a growing industry with immense potential. According to a report by Goldman Sachs, the global esports market is expected to generate $905 million in revenue in 2018, up from $696 million in 2017. This figure is expected to grow further to $1.4 billion by 2021.
Of this $905 million in revenue, $694 million will come from media rights and sponsorship deals, while $211 million will come from game publishers. The report also notes that the majority of esports fans are located in Asia-Pacific, with China and South Korea being the biggest markets.
According to another report by SuperData, the global esports economy was worth $696 million in 2017 and is expected to grow to $1.5 billion by 2020. This growth is driven by increased interest from brands and advertisers, as well as higher investments in tournament prize pools and salaries for professional players.
The most popular esports games
While there are many different types of esports games, some are more popular than others. Here are four of the most popular esports games right now:
1. Counter-Strike: Global Offensive (CS:GO)
CS:GO is a first-person shooter (FPS) game that pits two teams against each other. One team tries to plant a bomb while the other team tries to stop them. It’s a very fast-paced game and is one of the most popular esports games in the world.
2. League of Legends (LOL)
LOL is a five-player online battle arena (MOBA) game. Two teams try to destroy the other team’s base by using strategy and teamwork. LOL is one of the most watched esports, with millions of viewers worldwide.
3. Overwatch
Overwatch is a six-player FPS game where two teams try to capture or defend points on a map. Each player has their own unique character with special abilities. It’s a very tactical game and has become very popular in the esports scene.
4. Dota 2
Dota 2 is another five-player MOBA game similar to LOL. Two teams try to take down the other team’s base by using strategy and teamwork. It’s one of the most popular esports games in the world and has some of the biggest prize pools in competitive gaming.
Esports Tournaments
The esports industry is growing at a rapid pace. Forbes estimates that the industry will be worth $1.65 billion by 2021. A big chunk of this revenue comes from esports tournaments. So, how much money does esports make from tournaments?
The biggest esports tournaments
The biggest esports tournaments often have prize pools in the millions of dollars, with the largest ones reaching into the tens of millions. These tournaments attract the best players from around the world and are watched by millions of fans online. Some of the biggest and most popular tournaments include:
The International (Dota 2): Held annually by developer Valve, The International is the largest and most prestigious Dota 2 tournament in the world. It typically has a prize pool of over $10 million, with the 2019 edition reaching a record $34.3 million.
The League of Legends World Championship: Run by developer Riot Games, this is the biggest League of Legends tournament in the world. It typically has a prize pool of around $5 million, with the 2019 edition reaching $6.4 million.
The Overwatch League: Run by developer Blizzard Entertainment, this is one of the biggest esports leagues in the world, with a prize pool of over $3 million.
Prize pools
The total prize money awarded in esports tournaments is difficult to estimate because of the fragmented nature of the industry, but some reports put it at around $865 million in 2018. This number is expected to grow to $1.1 billion by 2019, according to market research firm Newzoo.
The lion’s share of this prize money comes from a handful of games. Dota 2, a multiplayer online battle arena game, has awarded more than $296 million in prizes since 2012, according to esports data tracker Esports Charts. Other top games include Counter-Strike: Global Offensive ($77 million), League of Legends ($65 million) and Overwatch ($34 million).
Esports Players
The esports industry is growing rapidly with more and more tournaments and leagues popping up. With this growth comes an increase in prize money and salary for professional esports players. So, how much money does esports make?
The highest earning esports players
The top earning esports players come from a variety of different games and regions. The majority of the top 50 are from Europe and North America, with a few players from South Korea, China, and Australia. The games with the most representation are Counter-Strike: Global Offensive, Dota 2, League of Legends, and Overwatch.
1. Kuro Takhasomi – $4.7 million
2. Sumail Hassan – $3.5 million
3. Saahil Arora – $3.5 million
4. Anathan Pham – $3 million
5. Jesse Vainikka – $2.7 million
6. Johan Sundstein – $2.6 million
7. Maroun Merhej – $2.5 million
8. Ivan Ivanov – $2.4 million
9. Amer Al-Barkawi – $2.3 million
10. Clinton Loomis – $2.3 million
The most followed Twitch channels
Esports is a form of competition that is facilitated by electronic systems, particularly video games. The most common genres of esports are first-person shooters (FPS), real-time strategy (RTS), fighting, digital collectible card games, and multiplayer online battle arenas (MOBAs). Popular esport titles include Counter Strike: Global Offensive, League of Legends, Dota 2, Call of Duty, Halo 5: Guardians, and Overwatch.
Due to the popularity of streaming services like Twitch, esports has seen a surge in popularity in recent years. Top Twitch channels like Ninja and shroud bring in millions of dollars in revenue each year from advertisements, donations, and subscriptions.
Brands in Esports
Brand investment in esports continues to accelerate, with 2019 seeing a 41% year-on-year increase to reach a record $649 million globally according to research firm Newzoo. The global esports economy is now worth $1.1 billion.
Brands sponsoring esports teams
With the growth of esports, more and more brands are sponsoring teams and players. Here are some of the most notable sponsorships:
-Intel sponsors several teams, includingfnatic,SK Gaming, Team Liquid, and more.
-Logitech sponsors several teams, including G2 Esports, Fnatic, and Evil Geniuses.
-Red Bull sponsors several teams, including G2 Esports, FaZe Clan, 100 Thieves, and more.
-Monster Energy sponsors several teams, including Team Liquid, Cloud9, TSM, 100 Thieves, and more.
-Hearthstone sponsor Hearthstone World Champion Wu “Xiaomi” Yang.
Coca Cola sponsors the LCK (League of Legends Champions Korea).
Brands sponsoring esports tournaments
As the popularity of esports tournaments has grown, so too has the amount of money that brands are willing to spend on sponsoring these events. According to a report from marketing intelligence firm Newzoo, brands are expected to spend $694 million on sponsorship deals with esports tournaments in 2018. This represents a year-over-year growth of 41.3% from the $489 million that was spent in 2017.
The majority of this spending will come from companies in the technology sector, as they look to reach the large and valuable demographic of young, male gamers. Indeed, tech companies such as Intel, Qualcomm, and Razer have been some of the biggest spenders on esports sponsorships in recent years. Other notable brands that have invested in sponsoring esports tournaments include Coca-Cola, Red Bull, Samsung, and Toyota.
With the immense amount of money flowing into esports tournament sponsorship deals, it is likely that we will see even more big brands getting involved in the space in the near future.
Future of Esports
Esports is a form of competition using video games. Most commonly, esports takes the form of organized, multiplayer video game competitions, particularly between professional players. The most common video games played in esports are multiplayer online battle arena (MOBA) games, first-person shooter (FPS) games, real-time strategy (RTS) games, and battle royale games.
Growth of the esports industry
The global esports market is expected to grow from $696 million in 2017 to $1.5 billion by 2020, according to Newzoo’s 2018 Global Esports Market Report. The bulk of that — $1.1 billion — will come from media rights and sponsorship deals.
That growth is being driven by a variety of factors. For one, the esports audience is growing: Newzoo estimates there are 385 million esports fans around the world, up from 335 million in 2017. Of those fans, 191 million are occasional viewers and 194 million are “esports enthusiasts.”
What’s more, those fan numbers are expected to grow: By 2021, Newzoo projects there will be 589 million esports fans worldwide.
New games entering the esports scene
With the global esports market expected to generate $1.1 billion in revenue in 2019, it’s no surprise that more and more games are being developed with esport potential in mind.
AAA developers such as Activision Blizzard, Electronic Arts, Riot Games, and Valve all have existing franchises that are major players in the esports scene. But given the massive success of esports, it’s inevitable that other publishers will want a piece of the pie. And with the current popularity of battle royale games, it’s no surprise that this genre is particularly well represented among upcoming esport titles.
Here are some of the most promising new games that could make a big splash in the world of competitive gaming.
Apex Legends ( Respawn Entertainment)
Released in February 2019, Apex Legends quickly rose to become one of the most popular battle royale games on the market. With its unique character-based abilities and smooth gunplay, Apex Legends has already garnered a large following both among casual gamers and streaming celebrities alike. The game also features an innovative ping system that allows players to communicate without using voice chat, making it more accessible to a wider audience. Respawn Entertainment has already announced plans for an organized competitive scene for Apex Legends, making it one of the most promising new esports titles on the horizon.
Rapture Rejects (NGD Studios)
Rapture Rejects is a top-down battle royale game set in the world of Cartoon Network’s popular show “Battle for Dream Island”. Up to 100 players will compete against each other to be the last one standing, using cartoonish weapons such as dodgeballs and rubber chickens. The game is currently in Early Access on Steam, but is already receiving positive reviews from users and has been nominated for several awards at prestigious gaming conventions. With its colorful art style and lighthearted tone, Rapture Rejects could be a welcome addition to the often serious world of competitive gaming.
H1Z1 ( Daybreak Game Company)
H1Z1 is a long-running battle royale title that predates even PlayerUnknown’s Battlegrounds. Originally released in 2015 as an “Early Access” game on Steam, H1Z1 has undergone significant changes over its four-year lifespan. The game saw a particular surge in popularity after being featured on Twitch by multiple high-profile streamers, leading to a boost in player numbers and an organized competitive scene hosted by ESL Gaming. H1Z1 is currently free-to-play on Steam and Playstation 4, making it easily accessible for anyone interested in trying out the game. With its lengthy history and established player base, H1Z1 could be poised for a resurgence in 2019 as a major player in the world of esports
