If you still think esports is just guys sitting around with headphones on, it’s time to take a look at the venture capital acquisition charts. In 2025, the discipline’s transformation into a high-margin business became completely evident, when multimillion-dollar deals between developers and media giants reached volumes comparable to traditional leagues. Tellingly, Riot Games’ decision to allow bookmaker sponsorships for VALORANT and League of Legends teams in the American and European regions was met with a wave of approval from analysts, who saw it as the only way to keep the teams afloat after the departure of aggressive tech investors. Playing on the edge is becoming the new norm in a world where every second of airtime costs tens of thousands.
The tactic of striking deals with direct beneficiaries (for example, gaming chair or energy drink manufacturers) is being supplemented by a new level—the introduction of revenue-sharing technology. That same year, Riot Games reported distributing over $100 million among VALORANT Champions Tour participants as direct payments from the in-game store. This was a huge boost for teams that previously couldn’t predict their budgets for the next quarter. Now, with a portion of the revenue from every in-game skin sold going to the league fund, team owners can rest easy knowing that even with a disappointing performance in the tournament bracket, their basic expenses will be covered. This shift from a “winner-take-all” model to a “survive together” model could become a lifeline for the entire industry.
An equally significant driver of profits are the colossal prize pools, incomparable to those of five years ago. Counter-Strike, League of Legends, and even the exotic Rocket League delight viewers with multi-million dollar prize pools: the 2025 RLCS World Championship alone offered participants $12 million, $300,000 of which went to the champion. That same year’s Esports World Cup tournament generated a whopping $1 million in prize money for seventeen teams, despite the gap between first and last place still being enormous: first-place KC took home $400,000, while fourth-place KC settled for $60,000. Nevertheless, the sheer size of the prize money fuels viewer interest and compels traditional sports media to pay attention.
