Esports, or competitive electronic sports, has evolved from being a niche hobby to what is now a growing billion-dollar industry. What was once dismissed as a gimmick by traditional sports analysts and media outlets has now emerged as a global powerhouse in terms of fanbase and business opportunities, rivalling the viewership and revenue of some of the most established sports.
Today, esports commands the attention of millions of fans worldwide. With lucrative sponsorship opportunities for players and teams, esports is also becoming a key player in the future of sports and entertainment.
The meteoric rise from pixels to prestige
In the early days of competitive gaming, no one would have thought that video games could eventually rival traditional sports in popularity and earnings potential. However, the numbers tell a different story. In 2022, the global esports market was valued at over US$1.38 billion, with projections estimating it will surpass US$1.8 billion by 2025. The global esports audience was estimated at 532 million in 2022 and is expected to rise to 641 million by 2025.
Events like the League of Legends World Championship, The International (DotA 2), and Fortnite World Cup attract millions of viewers around the world, with prize pools reaching millions of dollars. As of 2024, for instance, DotA 2 has a record US$30.82 million cumulative prize pool, with titles like PUBG (US$21.22M), Fortnite (US$19.72M) and Arena of Valor (US$19.19M) following close behind. What’s interesting is that these events are no longer just enjoyed through online viewership but also in sold-out arenas, with popularity comparable to that of the Super Bowl or the FIFA World Cup.
Esports teams leading the charge
Behind this expansion are the esports teams that have found professional careers in gaming. One such team is Natus Vincere (Na’Vi), which was founded in Ukraine in 2009. Na’Vi quickly rose to prominence by winning The International DotA 2 Championship in 2011, taking home the inaugural prize of US$1 million. Since then, the team has continued to be a dominant force in the esports scene, particularly in games like Counter-Strike 2 and DotA 2.
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Another key player in the esports landscape is Team SoloMid (TSM). Founded by Andy “Reginald” Dinh in 2009, TSM made its name in League of Legends, where it has been a dominant force in the North American region. The team’s expansion into other games like Valorant and Apex Legends further solidifies its position as one of the most successful and recognisable brands in esports. The team is reported to be valued at $540 million as of 2022.
In Southeast Asia, teams like T1 and Blacklist International have also highlighted the growth of esports in the region. T1, a South Korean team originally founded by SK Telecom and known for its dominance in League of Legends, has found continued success in more games such as DotA 2.
Meanwhile, Philippines-based Blacklist International has gained notoriety in Mobile Legends: Bang Bang, a game particularly popular in the region.
Going a step beyond, Gaimin Gladiators is innovating esports by bridging the gap between traditional esports and emerging technologies like blockchain and Web3. Competing in games such as Counter-Strike 2, DotA 2, and Tekken 8, the Gaimin Gladiators team is not only focused on winning but also on bringing new opportunities for fan engagement through Web3 technologies.
Gaimin Gladiators’ efforts to bridge emerging and established technologies in esports mark a significant evolution in how teams engage with their fanbase and monetise their brands. Through blockchain technology, teams can offer fans unique experiences, such as tokenised memberships, digital collectibles, and decentralised fan engagement platforms.
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Gaimin Gladiators is run by venture-backed Gaimin, which has raised at least $10 million in two venture rounds, most recently its Series A in March this year. The convergence of esports and Web3 will likely attract even more investment as companies seek to capitalise on the growing intersection between gaming and blockchain technology.
A billion-dollar ecosystem in the future of esports
Esports teams today operate much like traditional sports franchises, complete with player contracts, sponsorship deals, and media rights agreements. The top teams are valued in the hundreds of millions, for instance with FaZe Clan going public in 2022 with a US$725 million valuation, highlighting the commercial potential of esports.
As the industry continues to grow, more traditional sports entities are likely to invest in esports, blurring the lines between conventional sports and competitive gaming.
From its humble beginnings as a niche pastime, esports has grown in relevance and business potential, revolutionising how we think about competition, entertainment, and even sportsmanship. New technologies like integration with virtual reality, Web3, and blockchain will further enhance the gaming and audience experience.
Just like video games, esports is not just a passing trend but a legitimate and sustainable industry that will continue to attract investments, innovation, and talent. The journey from zero to hero in esports is far from over.
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