Towards a geopolitical economy of esports: making sense of Saudi Arabia’s investments

What the paper says

Purpose This study aims to argue that the esports industry is structured by geopolitical economic dynamics and must be understood through a geopolitical economic lens. Focusing on Saudi Arabia’s substantial investments in esports – both domestically and internationally – as part of its soft power strategy, the authors examine the geopolitical economy of the industry. As esports organisations grow increasingly reliant on Saudi capital, researchers concerned with the long-term sustainability of professional gaming should scrutinise these emerging geopolitical entanglements. Design/methodology/approach This study uses a methodology grounded in a geopolitical economic framework, which views nation states and other actors as using esports to advance geopolitical and economic objectives. To operationalise this framework, the authors conducted a trade press analysis (Corrigan, 2018) on industry reports, mass media and financial publications and the enthusiast press. Findings The analysis reveals the increased role of state-sponsored esports initiatives, particularly through entities like the Savvy Gaming Group and other state-sponsored investment groups. The authors also uncovered a notable decline in corporate esports investment in 2023, which has elevated both the relative and absolute significance of state-sponsored events. Originality/value This study offers original insights into the economic and social sustainability of esports by situating its analysis within the framework of the geopolitical economy of sports. The authors identify a distinct phase in the esports industry characterised by digital globalisation, shifting investment patterns and increased state involvement.