Why Competitive Video Gaming Is the Hot New Thing

The players participate in leagues with team franchises and media deals. They display their skills in sold-out arenas as millions of fans watch online. There are superstars and big-name sponsors. No, it’s not the National Football League or the Premier League -- it’s competitive video gaming, or what’s become known as esports. Once a niche world of small online communities, esports are fast becoming a billion-dollar global industry. Advertisers clamor for a shot at the lucrative young, male demographic. Investors are snapping up teams. Now, esports are looking to shed a "Wild West" reputation by adopting a more structured industry model and attracting more investment.

Yes, by the hundreds of millions. Instead of testing physical strength and stamina, competitive video-gaming tests how fast players -- they prefer "gamers" -- can click buttons and think strategically. In the past few years, competitive video gaming has exploded and is now projected to exceed $1 billion in sponsorship, advertising, media rights, merchandising and ticket revenue by the end of the decade. Ad revenue comes from pop-up videos and banners on streaming websites as well as traditional commercials on cable TV channels.