Is Esports Publicly Traded?

Esports is a rapidly growing industry with immense potential. But is it publicly traded? And if so, how can you invest?

Introduction

The esports industry is growing rapidly, with new games, tournaments, and leagues cropping up all the time. This has led to a lot of interest in investing in esports, but many people are unsure whether esports is publicly traded.

The short answer is that there are a few publicly traded esports companies, but the majority of the industry is still privately owned. This is because the industry is still relatively young and many companies are waiting to see how the market develops before going public.

However, there are a few ways to invest in esports even if you don’t want to buy shares in a company. For example, you could invest in an esport team or buy into a tournament franchise. Alternatively, you could invest in companies that provide services to the esports industry, such as streaming platforms or hardware manufacturers.

If you’re interested in investing in esports, then doing your research and speaking to an expert can help you decide the best way to do it.

What is Esports?

Esports is a term used to describe organized video gaming competitions, typically between professional players. Tournaments are often broadcasted online, and prize money can reach tens of millions of dollars. The most popular games in esports include first-person shooters (FPS), multiplayer online battle arenas (MOBAs), and battle royales.

Although esports has been around for decades in some form, it has only exploded in popularity in recent years. This is largely due to the growth of live streaming platforms like Twitch and YouTube Gaming, which have made it easier than ever for players and spectators to connect. The global pandemic has also accelerated the growth of esports, as traditional sports leagues have been forced to cancel or postpone their seasons.

So far, there is no single publicly traded company that focuses exclusively on esports. However, there are a few companies that have made significant investments in the industry, and their stock prices have reflected this. For example, Activision Blizzard (ATVI) is one of the largest video game publishers in the world, with popular franchises such as Call of Duty and World of Warcraft. Tencent Holdings (TCEHY) is a Chinese tech giant that owns several major esports businesses, including Riot Games (League of Legends) and Supercell (Clash of Clans). And finally, ESPN parent company Disney (DIS) has also been investing heavily in esports lately through its subsidiary ABC Sports.

The Business of Esports

The business of esports is booming.

Revenues are on track to reach $1 billion this year, up 27% from 2018, and they are expected to nearly double by 2022, according to market research firm Newzoo. The global esports economy will be worth $1.79 billion by 2022, Newzoo says.

A big reason for the growth is the rise of esports betting. Globally, people will bet $12.9 billion on esports in 2020, up from $8.5 billion last year, according to research firm Eilers & Krejcik Gaming. In the U.S., people will bet $3 billion on esports this year, up from $2.3 billion in 2019, the research firm says.

So it’s no surprise that investors are clamoring to get a piece of the action. But how can they invest in esports?

For now, there are two main ways to invest in esports: through traditional investments such as stocks and venture capital, or through new investment vehicles such as initial coin offerings (ICOs) and digital tokens.

Traditional investments in esports come with a higher degree of risk but also offer the potential for more rewards. Esports stocks tend to be more volatile than the overall market, and many are not profitable yet. And VCs typically invest in early-stage companies that may never make it to market.

ICOs and digital tokens offer a new way to invest in esports but come with their own set of risks and rewards. ICOs are crowdfunding campaigns for new cryptocurrency projects, and digital tokens are the coins or tokens sold in these campaigns. ICOs have raised billions of dollars over the past few years but have also been plagued by fraud and scams. And digital tokens can be extremely volatile: The price of Ethereum’s Ether token has fluctuated wildly since it launched in 2015, from less than $1 to more than $1,400 at its peak in January 2018.

The Future of Esports

It’s no secret that esports has been on the rise in recent years, with more and more people getting involved in competitive gaming. But what does the future hold for esports? One key question is whether or not esports will be publicly traded.

There are a few different ways that this could happen. One possibility is that existing publicly traded companies could invest in esports teams or leagues. Another is that new companies could be created that are focused specifically on esports. And finally, it’s possible that existing esports organizations could go public themselves.

At this point, it’s tough to say which of these scenarios is most likely. However, one thing is for sure: the future of esports looks bright. With more and more people getting interested in competitive gaming, it’s only a matter of time before the industry really takes off.

Conclusion

The answer to whether or not esports is publicly traded depends on how you define “esports.” If you consider only the companies that operate esports leagues and events, then the answer is no. However, if you also consider the gaming companies whose games are played in esports competitions, then the answer is yes. While there are no pure-play esports companies listed on major U.S. exchanges, there are a handful of gaming companies with significant esports operations, including Riot Games (RIOT), Activision Blizzard (ATVI), and Electronic Arts (EA).