2024 Prospects: Shifting Dynamics Among Major eSports Players

In anticipation of the upcoming ICE esports event in 2024, Igamingbusiness examines the transformations in the industry since the 2023 edition. Evaluating the market's leading positions and predicting the development trajectories of key players—Entain, Esports Entertainment Group, and Rivalry—provides insights into the ever-evolving landscape.

The esports market has witnessed a remarkable surge since 2020, with three prominent contenders emerging: Entain, Esports Entertainment Group, and Rivalry. Notably, Rivalry has taken the lead, while Entain and Esports Entertainment Group experienced a more fluctuating performance throughout 2023.

Entain and Esports Entertainment Grou

Entain and Esports Entertainment Group initiated ambitious plans at the start of 2023. Entain, aiming for global industry leadership, underwent a rebranding process in December 2022. Despite high expectations, the company has not achieved the anticipated positive changes and success even after a year since the relaunch. In a recent statement to iGB, Entain announced the winding down of its direct-to-consumer operations with Unikrn.

Esports Entertainment Group (EEG), another major player at the beginning of 2023, faced a turbulent year, allowing Rivalry to solidify its leading position. EEG encountered business challenges starting in May 2022 when doubts about its survival arose. Following the default on convertible notes in October 2022, EEG's fate hung in the balance. In February, EEG announced the €9.5 million sale of part of its online casino and sportsbook business to Bethard.

Despite substantial cost cuts, EEG's net loss has widened exponentially, with no evident improvements. However, the company's management remains optimistic, holding onto hope for a turnaround in the situation in 2024.

Dominant Position

Rivalry, a standout brand in the esports domain, has effectively capitalized on the vulnerabilities of both Entain and Esports Entertainment Group (EEG), securing a commanding leadership position, according to insights from Pinnacle, a major esports investor that allocated £5.9 million to the sector in 2023.

Rivalry's Strategic Focus on Generation Z and Millennials

Hailing from Toronto, Rivalry has surpassed revenue expectations, establishing itself as the go-to esports brand for Generation Z and millennial users. Aiming its offerings at a youthful audience has proven to be a successful strategy, with approximately 80% of Rivalry's clientele being under the age of 30. The company's advertising campaigns, characterized by slang, online slogans, memes, and collaborations with youth influencers, embody a distinctive "down to the kids" approach.

Profitability as the Key to Sustaining Leadership

Rivalry's commitment to achieving profitability stands out as a crucial element in maintaining its leadership position in the upcoming year. Despite posting record revenue of $8.7 million (£6.9 million/€7.9 million) in the third quarter, the company remained in the red. Operating expenses and foreign exchange losses offset revenue growth, resulting in a widened consolidated loss for the quarter, totaling $6.0 million, up from $5.6 million in 2022.

Monopolizing the Esports Market

Looking ahead, Rivalry is set on resolving the challenge of turning a profit and aims to achieve complete dominance in the esports market. Despite the financial setbacks, Rivalry's co-founder and CEO, Steven Saltz, commended the company's employees for driving revenue growth in the face of a "challenging" global economic environment. Saltz expressed confidence in Rivalry's continued growth in the fourth quarter and beyond, signaling the company's ambitious pursuit of monopolizing the esports landscape.