The Esports Industry - An Introduction

How Venues Generate Revenue, Impact Host Cities, and Shape the Industry

Esports venues are a critical part of the gaming industry's live event ecosystem, yet they remain something of a mystery to many outside the space. In a wide-ranging conversation with Ben Akroyd, Director at Arena Consultancy, we explored the current state of esports venues—from how they’re selected and monetized to their broader societal impact. With over 25 years of experience working with brands like Ubisoft, SEGA, Red Bull, and various international venues, Akroyd sheds light on how the esports venue model works and why it's becoming an integral part of modern cities and digital culture.

Despite the rapid growth of esports, there are currently fewer than ten dedicated esports arenas in operation worldwide. However, many more multipurpose venues market themselves as "esports-ready," even if their capability to host such events varies significantly. Some facilities are cutting-edge but underutilized due to poor marketing, while others with less technical infrastructure overpromise on delivery. Arena Consultancy helps bridge this gap, connecting event planners with viable venues across the globe.

Esports Venue Infrastructure - Ownership, Construction, and Criteria for Selection

Esports arenas are generally funded by a combination of private sector investors and game publishers. The rise of franchised leagues like the Overwatch League, which mandates that teams have home venues, has accelerated the development of such spaces. A prominent example is SoFi Stadium in the U.S., which includes esports facilities and also serves as an NFL venue. In the UK, the Northern Lights Arena Europe (NLAE) is under construction in Dundee. This 3,000-seat venue—partially funded by the Dundee City Council—will cater specifically to the esports community.

The selection process for esports venues is complex and multifaceted. According to Akroyd, key considerations include broadcast time zones, the availability and proximity of accommodation for players, technical and broadcast infrastructure, rental costs, and overall availability. No two events are alike, so flexibility and scalability often determine whether a venue is chosen.

Monetizing Esports Venues - How Arenas Generate Revenue and Sustain Business Models

Most esports venues generate revenue through third-party tenancy agreements. While ticket sales can offer supplementary income, particularly if exclusive arrangements with ticketing platforms are in place, the long-term value often comes from increased brand visibility and repeat bookings from tournament organizers. “The venues that do best are those that aren’t overly reliant on esports alone,” explains Akroyd. “Mixed-use venues that can host corporate events, concerts, and other forms of entertainment tend to be more sustainable and profitable in the long run.”

Profitability varies widely. Venues that serve multiple purposes and incorporate esports into a broader business model are often better positioned for financial success. Flexibility in tenancy and the ability to accommodate both weekday and weekend events gives these venues an edge in the marketplace.

Global Esports Games - Who Hosts and Who Pays

Major esports tournaments are usually hosted either by game publishers or third-party tournament organizers with official licensing. For example, BLAST independently hosts CS:GO tournaments with Valve’s blessing, while Epic Games and EA often manage their own Fortnite and FIFA competitions respectively. The ability to monetize intellectual property plays a huge role in determining how and where these tournaments take place.

The cost of tenancy varies, depending on the scope and duration of the event. Akroyd notes that some organizers book out entire weekends—Friday through Sunday—for live finals, and that these bookings can be very lucrative for venues, especially when the production scale includes rehearsals and technical setup days.

Citywide Impact - How Hosting Esports Events Boosts Local Economies and Reputations

Hosting a major esports tournament can deliver both immediate and long-term benefits to a city. Much like a traditional sports event, esports competitions attract large crowds who travel, dine, and stay in local hotels. According to Akroyd, studies suggest that esports fans contribute 40 times the value of their event ticket to the local economy. The financial boost from travel and tourism alone is significant.

But the benefits don’t stop at economics. Cities like London and Atlanta have seen their tech and education sectors flourish in the wake of hosting esports events. As esports gains mainstream traction, cities that align themselves with this movement often experience growth in digital media, software development, and academic programs related to gaming and technology.

Social Implications of Esports - Balancing Recreation with Professional Ambition

Esports also carries complex social implications. Critics argue that screen time should be limited in favor of more traditional activities, especially for young people. Akroyd acknowledges this concern but advocates for balance. "Gaming, like any hobby, needs moderation," he says. "As a parent, I understand the need to balance screen time, but as a professional, I see esports now being respected at the same level as traditional sports."

Professional gaming is becoming a legitimate career path, with structured training programs, sponsorship deals, and international recognition. As the industry matures, perceptions are shifting, and esports is increasingly being viewed as a viable professional field, especially among younger generations.

Global Trends and Market Leaders - Which Countries Are Setting the Standard?

While no single country can claim complete dominance, several regions are emerging as esports powerhouses due to infrastructure, fan engagement, and government support. Brazil, for example, hosted the ESL One Rio for CS:GO in 2019, capitalizing on its enormous amateur player base. Meanwhile, Peru recently held a DOTA 2 Major in Lima, putting the country firmly on the global esports radar.

These examples show that tournament organizers are increasingly seeking out new and vibrant markets to host events. The global nature of esports allows countries without a long history in the space to quickly gain traction through strategic investment and cultural enthusiasm.

Branding and Sponsorship - Marketing to the Next Generation

Sponsorship is one of the most effective ways for brands to engage with younger audiences through esports. According to Akroyd, organizers typically seek three types of sponsors: broadcast platforms to expand viewership, endemic brands within the gaming ecosystem, and non-endemic brands (such as energy drinks, financial services, and tech) seeking to reach Gen Z.

Whether through naming rights—like Intel’s title sponsorship of the Intel Extreme Masters—or immersive in-game collaborations like Fortnite’s Ariana Grande concert, esports marketing is dynamic and adaptable. The digital-first nature of esports provides brands with real-time metrics, targeted engagement, and access to demographics that are increasingly tuning out traditional media.