When Esports first began, few would have imagined the exponential nature of its growth. However, over the past decade, Esports has become a booming global industry and has made its way into the same conversation as other major sports leagues. Esports, short for “electronic sports,” is the industry that encompasses the competitive playing of video games. Currently, there are over 2.96 billion Esports players globally and that number is only expected to rise.
A report from Newzoo showed that the gaming industry is almost three times larger than the music and film industry combined, making it the largest industry in entertainment. According to a 2020 Goldman Sachs study, viewership of professional competitions for games such as “League of Legends,” “Dota 2,” “Overwatch” or “Counter-Strike: Global Offensive” should be on par with the National Football League’s viewership by 2022, and that the total Esports monetization would reach $3 billion by 2022.
Esports is not just about online viewership either; it is just like traditional sports where fans want to be in person at the events and in the action. Physical gaming arenas are popping up across the country, allowing for large team tournaments, recreational play, smaller competitive play, and a place for esports fans, players, and viewers alike to congregate. The demand for brick-and-mortar Esports venues will likely grow exponentially in the next few years.
Both retail and office spaces have been struggling since the pandemic. During this time, Esports has shown its need and ability to take over these commercial real estate areas. These spaces could be used as gaming arcades, training facilities, team headquarters, and even stadiums. It would benefit commercial real estate owners to adapt to these changing times by utilizing their spaces to accommodate the needs of the biggest industry in entertainment.
Kelan Sullivan is an attorney, and a member of the Corporate and Mergers & Acquisitions and Veterinary practice groups at Forchelli Deegan Terrana LLP in Uniondale, NY.
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