How To Invest In Esports | Invest In A Booming Market
The popularity of esports is on the rise, with an estimated 427 million people expected to watch global esports competitions by 2021. Esports is now a multi-billion dollar industry, and it's only going to continue to grow as more people become interested in watching competitive gaming. If you're thinking about investing in esports, here are some things you'll want to know.
In esports, teams and players compete against one another in popular video games such as Dota 2, League of Legends, Hearthstone, Overwatch, and Counter-Strike: Global Offensive.
Competitions range from small online tournaments held every day, to large international competitions with multi-million dollar prize pools. Many well-known brands have entered the esports market in recent years, including Red Bull, Audi, T-Mobile, and Intel.
What is Esports?
If you're wondering what the heck I'm talking about when I say esports, here's a brief overview. Esports (also known as electronic sports) is competitive video gaming at a professional level.
Players compete in popular multiplayer video games against one another, and competitions range from small online tournaments held every day, to large international events with multi-million dollar prize pools.
How do I invest in esports? How do I get started?
First off, before you dive into the world of investing in competitive video gaming, you'll want to familiarize yourself with some basic concepts. Here are a few key terms you'll want to know:
- Esports organization: A company that owns and manages one or more esports teams.
- Pro player: A professional video gamer who competes in tournaments for prize money.
- Team: A group of pro players who compete together in tournaments.
- Tournaments: Competitive competitions where teams of pro players compete for prize money.
Once you've got the basics down, you'll need to decide how you'd like to invest in esports. Here are a few ways:
- Esports betting: Betting on esports matches with an established bookmaker.
- Sponsorship: Becoming a sponsor of an esports organization or team.
- Media rights: Buying the rights to broadcast esports tournaments and matches.
- Streaming platforms: Starting or investing in a streaming platform that broadcasts esports competitions.
How risky is it to invest in esports?
Like any investment, there is always some risk involved when you put your money into something. However, with the right knowledge and due diligence, you can minimize your risk when investing in esports.
The esports market is still relatively young, so it's important to do your research before investing in any teams or organizations. It's also important to be aware of the risks involved with betting on esports matches. As with any type of gambling, there is always the potential for you to lose money.
What are the potential benefits of investing in esports?
There are a number of potential benefits to investing in esports. Here are a few:
- The esports market is growing rapidly and is expected to reach $1.5 billion by 2022.
- There is a large and growing global audience for esports, with estimates suggesting that 427 million people will watch esports by 2022.
- A number of high-profile brands and companies (such as Red Bull and Audi) have already invested in the esports market, further legitimizing it as a viable investment opportunity.
- As more money is invested into the esports industry, more opportunities for revenue growth become available. For example, the sale of media rights, sponsorship deals, and merchandise.
Esports is a quickly growing industry with a large and global audience. There are a number of potential benefits to investing in esports, including the potential for high returns on investment.
Do your research before investing, and be aware of the risks involved. With the right knowledge, you can minimize your risk when investing in esports. Investing in esports can be a great way to diversify your portfolio, while also getting exposure to the rapidly growing esports market.
What factors to be considered before investing in Esports Company?
When it comes to esports, investors have a few key factors to consider before sinking their money into the market. Investors should carefully consider these factors before investing in an esports company.
By understanding the risks and potential for growth involved in the esports market, investors can make more informed decisions about where to put their money. Here are a few:
- Risk Involved: As with any investment, there is always some risk involved when you put your money into something. However, with the right knowledge and due diligence, you can minimize your risk when investing in esports.
- Team Performance: It's important to do your research before investing in any teams or organizations. You'll want to make sure that the team or organization you invest in is performing well and has a good chance of winning tournaments.
- Tournament Structure: Make sure you understand how the tournaments work and what the prize money is for each event. This will help you better assess your potential return on investment.
How to start investing?
To invest in Esports, one should follow these steps:
Opening a brokerage account:
The first step is to open a brokerage account with one of the many online-brokerage service providers. Once you have an account set up, you can start buying and selling stocks or exchange-traded funds (ETFs) that invest in the esports market.
The easiest way to start investing in esports is to open a brokerage account. A brokerage account allows you to buy and sell stocks, bonds, and other types of investments. There are hundreds of brokerage services to choose from, including Etrade, Ameritrade, Charles Schwab, and more.
Be sure to do your research before selecting a brokerage account. Each provider has different fees and services, so you'll want to find one that best suits your needs.
Pick the right company:
When looking for a company to invest in, it's important to do your research. Make sure you understand the company's business model and what they offer. This will help you better assess your potential return on investment.
Do your research on the company you want to invest in. Learn about their business model, location, and competitors. By knowing how they work, what they offer, and who their competition is, you can make an informed decision about whether or not a potential investment is a good strategic move for your portfolio.
Make an order:
Once you are signed up through your brokerage account, it's time to make an order. To do this, decide on what company you want to invest in and how much of that stock you want to buy.
You can also decide whether or not you would like to place a market order or limit order. A market order will sell at the current market price. A limit order is a little different- it's at whatever the price you set, or better when it reaches that price.
Keep in mind that your order may not be executed right away- if the market isn't open yet, an opening call auction will run to establish a fair market value for stocks. Once this is done, your order will be filled at that price.
What are the booming stocks in Esports?
There is a long list of stocks and each one has different value and potentials for the future.
Activision Blizzard Inc., through its subsidiaries, creates and delivers interactive entertainment worldwide. The company develops and publishes games on various platforms. It provides downloadable content; operates battle.net that offers online video gaming; and creates and distributes social media content.
Activision Blizzard is a global leader in interactive entertainment. Activision maintains operations throughout the world, with offices in both San Francisco and Los Angeles.
Activision's culture is focused on creating great games that are enjoyed by players around the world. The company has created some of the industry's most respected video game franchises, including Call of Duty®, Destiny™, Skylanders®, Guitar Hero® and World of Warcraft® to name just a few.
One of our top priorities is building up our digital business so it can be an even more important part of our future success—and we’re doing this through initiatives like engaging audiences with esports content via MLG or acquiring King Digital Entertainment for $5.9 billion in 2016 to establish leading positions across mobile
Take-Two Interactive Software:
Take-Two Interactive Software, Inc., together with its subsidiaries, develops, publishes, and distributes interactive entertainment software in the United States and internationally. The company develops and publishes products through its 2K, Rockstar Games, and Private Division brands.
Take-Two Interactive Software is a leading worldwide publisher of video games. Founded in 1993, the company develops and publishes products for console systems, handheld gaming systems, personal computers, mobile devices, and social networks.
Take-Two interactive has been most well known for publishing some of the most popular video game franchises in recent history such as Grand Theft Auto (GTA), NBA 2K, Red Dead Redemption, and WWE 2K.
In addition to developing its own intellectual properties by establishing studios like Rockstar Games or Visual Concepts; Take-Two also acquires other established developers with proven track records such as Firaxis Games or Irrational Games.
The company's strategy is based on creating long term value through innovation and diversification while maintaining a commitment
Electronic Arts (EA) is a leading publisher of video games that creates experiences for gamers. EA's game franchises include Madden NFL, FIFA Soccer, NHL Hockey, NBA Live, and others. In addition to publishing games from third-party developers as well as those created by its own studios, EA publishes titles from the sports genre across consoles and mobile platforms.
The company's products are typically licensed by major sports leagues such as the National Football League (NFL), Major League Baseball (MLB), NCAA Division I Men's Basketball Association (Men’s College basketball), or National Hockey League (NHL). Electronic Arts also operate a competitive gaming division including its popular Fifa series--the most played football franchise in esports.
Huya is a leading gaming platform in China. Huya currently derives more than 95% of its revenues from virtual gifting on its platforms, including core Huya and its subsidiary Nimo TV, a live streaming platform focused on mobile in Southeast Asia and Latin America.
In addition to its core business, Huya owns Royal Never Give Up (League of Legends Team) and the Chengu Hunters (Overwatch Team). Huya also recently announced a JV with ESL to expand its esports competitions into China. Huya is backed by Tencent, one of the world’s largest technology companies.
Valve Corporation is an American video game developer, publisher, and digital distribution company. The valve was founded in 1996 by Gabe Newell and Mike Harrington.
The company is best known for its Half-Life, Portal, and Counter-Strike series. Valve is a public company and operates its own digital distribution platform, Steam, which earns more than $3 billion a year in gross revenue.
In addition to its own games, Valve also makes many popular video games available through Steam including Dota 2 and PlayerUnknown’s Battlegrounds (PUBG).
Riot Games is a video game developer founded in 2006. Riot Games is best known for its flagship title, League of Legends (LoL), which it self-publishes and operates with over 100 million monthly players. Riot also has an esports division that focuses on professional tournaments. Their
North American League of Legends Championship Series (NA LCS) has 11 professional teams competing for $10 million in prizes. Riot recently announced that it will be launching an official winter-themed esports league with the goal to increase viewership during the off-season.
Enthusiast Gaming is the world’s largest independent gaming media company. The Company owns and operates O.G. Tech (the world’s most popular PC components review website), Xsplit, MMOHuts, GINX Esports TV Channel, Enthusiast Gaming Live Expo (EGLX) annual video game expo, and a variety of web platforms. Enthusiast Gaming has a growing community of over 18 million viewers with its world-class online influencers.
In February 2019, the Company acquired Destructoid, a leading gaming website with over 10 million monthly readers.
Twitch is a leading social video platform for gamers. Twitch was created by Justin Kan and Emmett Shear, who wanted to create the world's leading site for multiplayer gaming. Rather than focusing on one specific genre, Twitch became the go-to site for all types of gamer streams including PC games, console games, board games, card games, etc.
The platform was created with the vision to create a site where gamers can connect and share their experiences with each other through live-streaming videos. On average, there are 1.5 million people watching Twitch at any given time, which makes it one of the world's most popular websites in the U.S.
Tencent is a Chinese technology company founded in 1998. The company is best known for its popular messaging app WeChat, which has over 1 billion active users. In addition to WeChat, Tencent also operates the world's largest online gaming platform, QQ Games, which has over 650 million active users. Tencent also has a majority investment in Riot Games, which operates League of Legends.
What is Esports ETFs?
Esports ETFs are exchange-traded funds that allow investors to bet on the growth of the esports industry. The first Esports ETF was launched in December 2017 by VanEck and Reality Shares.
The ETF is called the Reality Shares Nasdaq NexGen Economy ETF (BATS: NGE) and it invests in companies that are expected to benefit from the growth of the esports industry.
These companies include video game developers, streaming platforms, and hardware manufacturers. Some of the largest holdings in the ETF include Activision Blizzard (8.5%), Electronic Arts (7.5%), and Take-Two Interactive (4.0%).
Some of the ETFs are:
The Roundhill BITKRAFT Esports Index is designed to track the performance of global companies that are actively involved in the competitive gaming industry. With a modified equal-weighted portfolio, this index offers a diverse and reliable way to invest in one of the most exciting sectors around. So if you're ready to stake your claim in the emerging esports market, look no further than the NERD ETF!
The ESPO ETF is your gateway to the exciting world of eSports. This innovative investment product includes stocks of companies involved in all aspects of the eSports industry, from hardware and software development to casinos and online betting.
Whether you're a hardcore gamer looking for new investment opportunities, or just want to get in on the ground floor of this rapidly growing industry, ESPO is a smart way to capitalize on the eSports craze.
BJK ETF provides investors with exposure to the casino and gaming sector, including casinos, sports and racebook operators, and technology providers. With a portfolio of well-known holdings, BJK is an excellent option for those looking for small-cap exposure to the entertainment segment.
The BFK ETF is a popular choice for investors looking for exposure to the gaming industry. The ETF includes holdings in casino operators, sports and racebook operators, and technology providers, making it a diverse option for investors.
The Bottom Line:
Esports is a rapidly growing industry with a lot of potential for investors. There are a number of ETFs available that offer exposure to the esports market, making it easy for investors to get involved. The growth of the industry is expected to continue in the years ahead, making this an attractive investment opportunity. So if you're looking for a new way to invest, esports may be the answer you've been looking for.