eSports market: how do eSports make money?  The main revenue streams

eSports are no longer the new kids on the block. They emerged only relatively recently – compared to the traditional sports – but they are becoming equivalent to the conventional sports as the years go by. And when we say equivalent, we mean in almost all relevant ways. From the viewership rates and the die-hard fans to the huge money involved and the enormous betting interest they generate from punters. In fact, for that last matter, you’ll be surprised that there is nearly no betting site that doesn’t offer vedonlyönti netissä on eSports. On the contrary, most bookmakers feature a rich list of different eSports betting markets. 

Competitive video gaming has intruded into our world and has changed the way we perceive and view sports. Games like DOTA 2, CS:GO, Call of Duty, Fortnite or Overwatch have been absolute hits and have managed to bring in lots of money, generating enormous revenues for their organizations. But how do eSports make money? What are the major sources of revenues or simply put, which are the main revenue streams? 

Let’s break down the biggest sources of revenues: 

Sponsorships

Well, sponsorships are what makes eSports teams and companies rich. As eSports are getting more and more popular and widespread across the world, sponsors are paying bigger amounts for getting their brand more visible and accessible to the greater masses. 

Sponsorships not only bring money to eSports organizations that manage to secure multi-million dollar deals with global brands in big, popular tournaments and events, but they also bring money to teams or individual gamers themselves. 

Lately, we are seeing a new trend that makes its way strong in the world of eSports and this is no other than non-gaming, non-tech and non-sports brands getting into the picture as well. 

Brands like Coca-Cola, Red Bull, Mountain Dew are securing global attention for eSports and they are also opening up new sponsorship mega-deals as well with companies that do not necessarily have to do with sports, tech or gaming. 

Media rights

Everybody wants a pie from something that is very lucrative and extremely popular. Broadcasting events and tournaments secures huge money for eSports from media that undertake to cover the competitions. 

Tickets 

Of course one other source of revenue for eSports is the sale of tickets. Big stadiums and arenas actually get filled by fans who want to watch their favorite teams or gamers live, combating their opponents. They want to feel all the action live, just as it unfolds within the competitive field. 

And even though for almost two years, with the covid19 and the pandemic restrictions, revenues from tickets sold dropped dramatically, the revenue levels have not only been restored now, but it seems that there is much more interest in attendance. More than ever before. 

Digital sales

The amazing thing with eSports is that although they function in the virtual world, they do generate money in the physical, real world. People actually pay a lot of money to buy in-app products or services. Although this source of revenue is not the primary or the dominant one, it remains a significant way of making big bucks. 

Advertising

It’s not only the big sponsorships that bring revenues to eSports. Big tournaments and events also feature gold-paid advertisements. Streaming services and billboards are giving much money to organizations, teams and individual players. 

Merchandise sales

Well, merchandise is not important for generating revenues in conventional sports. It is also a way to make money in eSports as well. We are talking about apparel, fashion products which are becoming more and more popular lately amongst the youngest generations – who are the primary eSports viewers and followers. Collaborations with big brands, launch of new merchandise on a regular basis, fashionable items that become hyped instantly are only some of the key features of merchandise revenues in the world of competitive video gaming. 

This is a paid guest post.