A LOOK AT TORONTO’S INVESTMENT IN ESPORTS

In recent years, the video game industry has gradually evolved into various categories. One of the most prominent markets in the industry today is esports. In Canada, the esports market is expected to reach a projected revenue of $138.9 million (CA$189.35 million) in 2024, with market researchers predicting an annual growth rate of 6.37% to reach $177.8 million (CA$242.4 million) by 2028. The biggest esports segment today is the esports betting market, which works similarly to traditional sports betting. The rapid growth of esports in Canada is attributed to various factors, including increasing investments in infrastructure and a rising number of professional teams.

With ongoing digitalisation, increased smartphone usage, and a rising awareness of gaming, experts expect continuous growth in Canada’s esports market in the future. A key contributing factor to Canada’s increased investments in the esports industry is Toronto, where gaming and esports culture seem to thrive. In this post, we’ll take a look at key esports developments and investments in Toronto over the past few years and where we may be headed in the future:

Toronto’s own esports arena

One of the most prominent investments in esports in Toronto is the esports arena planned for 2025. Announced in February 2021 by OverActive Media Group, the esports and concert venue is set to be built in downtown Toronto. While details remain sparse, the esports arena is set to be connected to a 400-room hotel and will house 7,000 seats. The planned esports arena is regarded as a good business project for esports and other forms of performance entertainment. In addition to esports, representatives from OverActive stated a demand for a midsize arena in Toronto with 5,000 to 7,000 seats for concerts as an alternative to Scotiabank Arena, a facility used for NBA and NHL games.

While progress in the project has slowed down since its announcement in 2021, establishing the infrastructure would be a huge step forward in affirming Toronto’s place in the global esports industry. A dedicated esports venue would bring in lots of esports teams and players from around the world across various titles, as well as fans, enthusiasts and supporters.

Many esports supporters are also avid bettors, treating the venture like they would traditional sports betting. Like with football or basketball, fans can partake in esports betting predictions as an added layer to the esports viewing experience. Esports betting also adds stakes and engagement to the form of entertainment. While fans attend and watch esports tournaments to support players and teams, they also watch and listen to the games and commentaries from casters as a way to learn and get better at the game as well.

Investments in esports teams

OverActive Media Group, responsible for the esports arena project mentioned above, is also committed to constant investments in furthering esports culture in Toronto and Canada. The current owners of Toronto Ultra recently announced that they would acquire esports organisations KOI and Movistar Riders in an attempt to expand the company’s reach into the EMEA region. Regarded as a step forward to creating a global esports powerhouse, the acquisition would include all KOI esports assets and brands, including social media and intellectual property.

OverActive would also operate the slot in the Valorant Champions Tour EMEA League previously operated by KOI. The company would also enter into service agreements with former professional footballer and entrepreneur Gerard Piqué as part of the acquisition. Adam Adamou, CEO of OverActive stated that the move would solidify the company’s position in Spain, EMEA, and Latin America.

Meanwhile, OverActive’s Toronto Ultra recently enjoyed a dominant victory at the first Call of Duty League Major in January. Going head to head with Atlanta FaZe in the grand final, Ultra ended up with a convincing 4-1 victory, seeing the team lift the Boston Breach Major 1 trophy with player CleanX claiming MVP thanks to his clutch plays and multikills.

Cultivating Toronto’s gaming culture

Finally, aside from continuous investments in esports projects and ventures, Toronto also shines as a hub for gaming nerds and enthusiasts. In a previous post, we highlighted some of the notable attractions at the 2023 Canadian National Exhibition. This included new tournaments at the Gaming Garage, sponsored by Intel, which introduced more free games and larger prize pools for titles such as Street Fighter 6, Valorant, and League of Legends. This marked the 4th Annual Gaming Garage and showcased VR experiences, a video game dance floor, pinball tournaments, and, of course, competitive esports tournaments with up to $8,500 in prizes.

Even outside of esports, the city is home to various gaming hubs. Arcade bars have become a trend throughout the city since 2018. Co-owner of arcade bar Greta described this shift as people looking for new experiences in bars, like something to do rather than just drink. Greta is one of many trending arcade bars in the city today. It is a two-storey space decorated like a futuristic saloon and equipped with a dance floor and a collection of arcade and pinball machines. While Greta’s retro approach remains popular, other gamers may also enjoy arcade bars like Levelup Reality, which specialises in VR games, or Power Up Game Bar, which hosts a collection of classic and modern console games for guests to enjoy.