Is Esports Dying or Just Evolving?

My first encounter with the concept of competitive gaming came in the way of MTV True Life – I’m a Gamer (2003). Back then, gaming was a niche hobby. I would never have guessed that it would eventually generate enough cultural capital to become a bankable career.

Much of esports’ emergence can be credited to the introduction of streaming platforms like Twitch in the 2010s. Millions of people all around the world could now watch matches live. This generated new interest and investment. The mainstream began to take competitive gamers (eAthletes) seriously.

However, there’s been a shift in recent years. Esports doesn’t seem to garner as much excitement and attention as it used to - especially compared to other sports. Is this because it’s lost its sheen due to familiarity or something else?

The golden age of esports

Many in the gaming community point to the early to late 2010s (roughly 2013-2019) as the golden era of esports. This was the peak period for construction and openings for esports stadiums. Some notable sites and venues include:

· Blizzard Arena (2017, USA)

· Esports Stadium Arlington (2018, USA)

· LoL Park (2018, Korea)

· Busan e-Sports Stadium (2019, Korea)

Near the tail-end of the esports boom, we began to see celebrities invest in various companies and teams, which worked to further legitimise competitive gaming in the eyes of the mainstream. One of the most notable examples of this was rapper, singer and actor Drake investing in the esports organisation 100 Thieves in October 2018. He was far from the first, though. Before him, celebrities like Shaquille O’Neal and Ashton Kutcher had thrown their hats in the ring.

This newfound pop culture interest shifted how esports was marketed. Brands and organisations all over the world began leveraging lifestyle marketing strategies to attract sponsors and audiences. The ultimate goal was to make gaming and esports look cool and trendy.

Where did the momentum go?

Esports' decline in momentum came around the time the COVID-19 pandemic was in full swing. Lockdowns initially boosted the competitive gaming industry by driving viewership on streams and spending on merchandise and gaming hardware. However, when live events and traditional sports returned, interest in competitive gaming faltered. It was a bit like that old Toy Story (I don’t want to play with you anymore) meme.

Sponsorships declined, which resulted in reduced prize pools and financial strain on organisations. Not dissimilar to what we’re seeing in tech, esports organisations invested and scaled too heavily during the pandemic. This left them exposed when growth slowed. All this culminated in what many insiders now refer to as the Esports Winter (2022 to 2023).

Recovery?

On December 4th, 2023, Arnold Hur (Gen.G Arnold), CEO of Gen.G Sports, published an X post that covered how the industry could potentially get past the Esports Winter. Some ideas included forming strategic alliances with publishers and developing new revenue streams. It’s unclear how many organisations took these suggestions to heart, but soon enough, the industry was on the mend.

Unsustainable franchise models and over-leveraged organisations were forced out and replaced with new sponsors, regional circuits, and Saudi-backed investment. By the end of 2025, global esports was generating upwards of $5 billion in yearly revenue and 640 million in viewership. The aim for the industry has now shifted to sustainability.

Technology has always invited speculative mania. We’ve seen how crypto and app development made overnight millionaires and billionaires. Many thought esports would bring them the same prosperity. When it didn’t, they soured on the industry - which was frankly a blessing.

The other elephant in the room: sports betting

The Sports Betting market dwarfs the esports market significantly. Sports Betting is projected to reach over $88 billion in revenue by the end of 2026. We can compare the two because they both involve gaming, and yet they don’t seem to gel well together.

Globally, football (soccer) dominates sports betting, accounting for nearly two‑thirds of all wagers, followed by basketball, American football (NFL), horse racing, and tennis. Esports barely factors into the conversation when we’re talking about gambling.

Esports tournaments and matches aren’t compatible with sports betting. There are too many variables and too many different games. Esports fans tend to skew younger, with many of them under the legal gambling age. Regulators are also cautious about betting exposure to minors.

A lot of the advertising real estate that was occupied by esports has now been swallowed up by gambling. It generates more money, and it's far friendlier to fast-money investors. Hence, esports doesn’t have as much visibility as it used to. But it has never left the zeitgeist because it is so closely intertwined with gaming. Whether casual or hardcore, as long as gamers exist, esports will continue to thrive.

Conclusion: still alive and kicking

While esports may never reach the heights of notoriety it did during its salad days, the industry is still alive and well and even growing. Thanks to handhelds and cloud gaming, esports are becoming more accessible. Cheaper hardware reduces barriers to entry, allowing more people to spectate and participate. Esports has largely been restored to its niche status. However, it definitely isn’t dead or going anywhere soon and is still a viable career path for gamers.