This is Why eSports Could be a $2.5 Billion Market by 2022

ESports industry growth may be underestimated. While Newzoo analysts say the market could reach $1.8 billion by 2022, as reported by, “we expect esports industry revenue to exceed $2.5 billion by 2022. “Newzoo estimates that two billion people will be aware of esports globally in 2021, and we expect this group to be largely derived from core and traditional gaming audiences. What Newzoo is excluding from their projections are the more casual mobile gaming audiences, who enjoy puzzle, casino, and card and board games. This hypercasual and casual gaming audience segment in the esports umbrella also enjoys competitive play on their phones for cash prizes and is becoming a fast-growing segment for competitive, skill-based play.” That could be substantial news for companies such as ESE Entertainment Inc. (TSXV:ESE)(OTC:ENTEF), ESports Entertainment Group Inc. (NASDAQ:GMBL), Allied ESports Entertainment Inc. (NASDAQ:AESE), Nuvei Corp. (OTC:NUVCF)(TSX:NVEI), and Endor AG (OTC:ENDRF).

Look at ESE Entertainment Inc. (TSXV:ESE)(OTC:ENTEF), For Example

ESE Entertainment Inc. just announced that it has entered into a binding share purchase agreement to acquire 100% of the shares of Auto Simulation Limited T/A Digital Motorsports, an Ireland-based provider of advanced simulation racing infrastructure, technology, and support.

Under the terms of the Agreement, ESE will acquire 100% of the issued and outstanding shares of Digital Motorsports. The purchase price will consist of (i) CAD $1,681,250 in cash payable on the closing of the Transaction, subject to a customary working capital adjustment; (ii) up to 941,500 common shares of the Company issuable on Closing; and (iii) up to 8,473,500 Common Shares to be released in six equal installments every 6 months, with the first Installment being issuable on December 31, 2021. The Agreement will also contain an earn-out, whereby if DMS does not achieve certain revenue-based milestones during the earn-out period (commencing on execution and ending on January 1, 2027), certain of the security-based consideration under the Agreement will be delayed or withheld. The Company has also agreed to make an investment of €250,000 in Digital Motorsports on closing to fund its working capital needs.

The co-owners of Digital Motorsports have agreed to continue to run the operations of Digital Motorsports after Closing, to ensure continuous business operations and a smooth transfer of Digital Motorsports’ business to the Company, and will enter into employment agreements with Digital Motorsports.

Digital Motorsports is an award-winning organization and one of the leading sim racing solutions providers in Europe, specializing in building bespoke simulators and offering turnkey simulator packages. Included in the Transaction is Digital Motorsports’ portfolio of intellectual property related to racing simulator solutions, components, and cloud-based racing services. Additionally, Digital Motorsports is currently developing both products and technology to reduce the complexity and barriers to entry in sim racing. Digital Motorsports has key vendor distribution rights and partnerships in the industry, and they have worked with world champions across multiple disciplines from F1, WEC, WRC, Drifting, and more. Digital Motorsports are a customer-centric business offering a mix of professional products, turnkey solutions, and a world class esports racing league.

The Transaction is intended to build on ESE’s already strong position in the sim racing market and bring it one step closer to becoming one of the largest gaming and esports infrastructure companies in the world.

Niall Maher, CEO of Digital Motorsports commented, “Digital Motorsports (DMS) has a proven track record of building world class simulators and hosting the most competitive and professionally run online racing leagues and events. We are very proud to have a 5-star customer service rating, thanks to the trust and support of our online community and the tireless efforts of all our employees who make DMS a truly unique place to work and a recognized leader in esports. Over the past 3 years DMS has built a differentiated global brand in the Sim Racing space. With the increasing complexity and advancements of today’s AR/VR Motion Simulators, we believe the demand for turnkey solutions, tier 1 components and professional online racing is poised for years of significant growth. We are extremely excited to now be part of the ESE family and are well positioned to capitalize on this unique opportunity. ESE has the infrastructure, resources, culture, strategy and brand which is aligned to the Digital Motorsports Vision. I firmly believe we have everything in place to be No.1 Globally by bringing game changing new technology, next generation products and unrivalled professional services to the market and realize continued growth and sustained success into the future.”

Konrad Wasiela, CEO of ESE commented, “Our vision, shared alongside Niall and his team, is for Digital Motorsports to become the #1 global brand in esports for the motorsport industry. By combining the resources of ESE and Digital Motorsports, we anticipate excellent synergies to be realized for our business. With the execution of this agreement, we are one step closer towards executing our vision.”

Closing of the Transaction is subject to customary closing conditions, including TSX Venture Exchange approval.

Other related developments from around the markets include:

ESports Entertainment Group Inc., an esports entertainment and online gambling company, is pleased to announce the closing of the Company’s acquisition of Gameday Group’s B2C business, operating under the ‘Bethard’ brand by Bethard Group Limited, a fast-growing sports betting operator that generated $31 million in revenue in 2020. As a result of transaction, Esports Entertainment Group raised its fiscal 2022 revenue guidance to $100 million to $105 million. “This is another great addition for Esports Entertainment Group that substantially increases our revenue and available markets,” commented Grant Johnson, CEO of Esports Entertainment Group. “We will gain two new gaming licenses from this transaction, including one in the strategically important Swedish market. With these additions, we’ll have a total of 6 tier one licenses globally.”

Allied ESports Entertainment Inc., a global esports entertainment company and a subsidiary of Allied Esports Entertainment, Inc. announced that its 24-hour programming schedule on Twitch, featuring Allied Esports-produced tournaments and exclusive original content, has generated 13.4 million live views and 7.6 million unique views since its debut in November 2020. Allied Esports also added 46,752 Twitch followers during that time. In addition, Allied Esports has added four over-the-top (OTT) streaming services for distribution of its tournament content through its previously announced agreement with streaming workflow platform MuxIP. “The market for esports content is growing rapidly, and we are all-in on delivering our popular tournament broadcasts to fans across a diverse set of digital platforms,” said Jud Hannigan, CEO of Allied Esports. “As the past several months have proven, gaming fans want to watch competitive, high-quality content and with weekly productions across multiple continents, we have the ability to grow our distribution library and reach new audiences quickly and broadly.”

Nuvei Corp., the global payment technology partner of thriving brands, reported its financial results for the second quarter ended June 30, 2021. “Our revenue and Adjusted EBITDA results for the second quarter of 2021 exceeded the financial outlook previously provided, underscoring the strength and momentum in our business,” said Philip Fayer, Nuvei’s Chair and CEO. “We achieved total volume(2), revenue, and Adjusted EBITDA growth of 146%, 114%, and 112%, respectively, over the second quarter of 2020, as we continue advancing our strategic initiatives, expanding global connectivity and market opportunity, delivering full-stack leading edge payment technology solutions to help our merchants connect with their customers by making the world a local marketplace. Our accelerated investments in product, innovation, distribution and talent are driving performance and laying the foundation for sustainable growth. We are proud of our results and are consequently raising our financial outlook for the full year 2021 and providing medium and long-term growth targets.”

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for ESE Entertainment Inc. by ESE Entertainment Inc. We own ZERO shares of ESE Entertainment Inc. Please click here for full disclaimer.

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