A Turning Point for Esports in Saudi Arabia
In the heart of Saudi Arabia’s capital, a transformative moment for esports is unfolding, generating both excitement and concern across the industry.
The Esports World Cup Begins
The Esports World Cup (EWC), which kicked off on July 3, has united professional gamers, publishers, and fans worldwide for an eight-week competitive gaming extravaganza. With a record-breaking prize pool exceeding $60 million, this tournament has captured attention. Ralf Reichert, CEO of the Esports World Cup Foundation, expressed to CNN Sport that this spectacle aims to unify the industry, even as he clarified that the EWC was not solely designed to revitalize a struggling sector.
“Even without the overall economic downturn, we would have done the same thing,” Reichert stated.
Creating Opportunities for Clubs
Excitement surrounds the launch of the EWC Club Program, which aims to promote sustainable planning by offering 28 clubs worldwide an annual six-figure payout. This initiative hopes to provide organizations a platform for growth and maximize their involvement in the tournament.
Sam Mathews, CEO of esports giant Fnatic, emphasized that this program allows organizations to explore new game titles, such as Street Fighter, fostering growth within the esports community.
“A lot of that money is going to go into new regions, new games, new audiences, new players,” Mathews noted. “It’s very exciting to go into new games and compete with other teams.”
Industry Concerns and Controversies
While the EWC promises excitement and stability, it has also stirred controversy. Critics are wary of the tournament’s ties to Saudi Arabia, a nation often accused of “sportswashing”—using high-profile sporting events to divert attention from human rights abuses.
Reichert clarified that the EWC Foundation is a non-profit entity, partially funded by the Saudi government in a manner akin to other major sporting events. Despite criticism, he emphasized that there are currently no plans to relocate the EWC.
“It’s a country investing in esports on a scale that no one else is at this point in time, and that is fantastic for the sport,” he said.
Saudi Arabia’s Broader Esports Ambitions
Saudi Crown Prince Mohammed bin Salman, who helped launch the EWC, remarked that he doesn’t mind if investments are labeled as sportswashing, as long as they boost the economy.
“If sportswashing is going to increase my GDP by one percent, then I will continue doing sportswashing,” he stated.
Reichert described the EWC as a unifying force within the diverse esports landscape, aiming to connect tournaments, leagues, and clubs.
A Path Forward for Esports
The EWC is part of Saudi Arabia’s broader ambitions in esports, following the Gamers8 event last year, which featured a $45 million prize pool. This year’s tournament includes top organizations like T1, FlyQuest, and G2 Esports, competing across 21 esports titles. The prize pool will be distributed in various categories, such as player bounties and overall performance rewards.
Despite the enthusiasm surrounding the EWC, the esports industry has faced challenges, including layoffs at major companies like Riot Games, which recently let go of 11% of its workforce. Sponsorship budgets have tightened, and many teams are operating at a loss. However, the EWC is paving the way for partnerships with over 20 major brands, such as Adidas and KitKat, to invest in esports.
Human Rights Concerns
Amid the excitement, concerns about Saudi Arabia’s human rights record—particularly regarding freedom of expression and treatment of minorities—persist.
“Saudi Arabia is investing billions in esports, a field thriving on online interactions, while cracking down on any form of critical online expression,” said Dana Ahmed, an Amnesty International researcher.
The Saudi government-controlled Public Investment Fund (PIF) has acquired several leading esports companies, aiming to make the country a global gaming hub. Critics, including esports journalist Rod Breslau, argue that this growing influence is concerning.
“If this really was a privatized company that just got huge in Saudi Arabia for doing esports games, I wouldn’t have as much of a problem with it. But it is their government, and this entire initiative is used to just change opinion,” he explained.
Balancing Engagement and Criticism
Esports organizations find themselves navigating these complex issues. For example, Team Liquid released a video explaining their reasons for participating in the EWC while supporting team members who feel uncomfortable about it. Co-CEO Steve Arhancet emphasized the importance of dialogue over isolation.
“Progress lies in engagement, not isolation,” he said, acknowledging the challenges faced by LGBTQ+ individuals in Saudi Arabia.
Looking Ahead
As the EWC unfolds, it remains to be seen how successful this tournament will be. However, it is clear that Saudi Arabia’s role in the esports industry is poised to grow, leaving those opposed to its involvement grappling with a lack of consensus within the community.
