If you thought Saudi Arabia was only about oil and desert landscapes, think again. After sponsoring various sports events, the kingdom is now diving headfirst into esports and streaming—with a staggering $38 billion investment to prove it.
Hosting events like the Esports World Championship (EWC) 2024 and securing sponsorship deals with streaming giants like Mizkif, Emiru, and Tfue, Saudi Arabia isn’t just showing up to the gaming party. It is trying to run the show.
But it’s not all high scores and big checks. Some voices in the community argue that the kingdom is using esports to “sportswash” its image, glossing over bigger issues with flashy tournaments and massive prize pools.
On the flip side, many streamers and esports athletes see this influx of cash as a lifeline in a tough industry. Either way, with Saudi Arabia at the helm, esports is in for a wild ride, and we’re all here to see how it plays out.
A $38 billion investment in gaming
Saudi Arabia’s involvement in esports isn’t casual. In 2022, the kingdom committed to investing $38 billion over six years, part of its Vision 2030 initiative. This strategy aims to reduce its reliance on oil and modernize the economy. The idea is that esports can help engage younger, tech-savvy audiences and attract them to the country with lucrative deals.
However, this investment is about more than just economic development—it’s also about improving the country’s reputation and positioning it as a leader in the global gaming industry. Unsurprisingly, these ambitions have led to accusations of “sportswashing” within the gaming and streaming community.
Sportswashing is when countries try to clean up their image through flashy sporting events. By focusing public attention on big-name athletes, tournaments, and celebrities, governments hope to distract from more controversial issues like human rights. It’s like a PR makeover, but with more stadiums and sponsorships.
A well-known example of Sportswashing is Russia’s hosting of the 2018 FIFA World Cup, which many saw as an effort to boost its global image despite widespread concerns over its human rights record. Much like Russia, Saudi Arabia has been accused of using high-profile esports ventures to divert attention from its human rights controversies.
For instance, when it was announced that the Esports Awards would be moved to Riyadh, there was harsh criticism from panelists like Scott Smith and Goldenboy, leading them to step down in protest. Smith, in particular, renounced his Lifetime Achievement Award, even throwing it in the trash in protest, sparking online discussions about the ethical and financial implications of these partnerships.
A lifeline for esports
But there’s another side to the story. For many teams and organizations, Saudi Arabia’s investments are seen as an essential lifeline and can support them fully. With esports still an emerging field, financial support can be difficult to acquire—especially on this scale.
Just look at ESL Gaming, a major tournament organizer for games like CS and Dota 2. They were acquired by Saudi Arabia’s Savvy Gaming Group in 2022 for $1.08 billion. This acquisition created the ESL FACEIT Group (EFG), allowing ESL to expand its infrastructure and stabilize the esports scene, especially in North America.
Similarly, VSPO, a leading esports company in Asia, received a $265 million investment from Savvy Gaming Group in 2023, making the Saudi group its largest stakeholder. This funding helps VSPO scale its mobile esports operations globally, with a strong focus on the Middle East, aligning with Saudi Arabia’s Vision 2030.
Hosting major esports events
Saudi Arabia isn’t just investing in esports—it’s changing the landscape of competitive gaming. In 2024, Riyadh hosted the Esports World Championship, which boasted a record-breaking $60 million prize pool. Over 1,500 players competed in this eight-week event, setting a new standard for esports tournaments.
Moreover, Saudi Arabia is also set to host the first Olympic Esports Games in 2025. This event, supported by the International Olympic Committee (IOC), combines the official brand of the Olympics with the fast-paced digital world of esports. With these events, Saudi Arabia is positioning itself as a key player in the future of competitive gaming.
However, the decision to hold events in Saudi Arabia has sparked divided reactions, especially among gamers and influencers. Some, like Asmongold, have refused to attend Saudi-hosted events. Others, such as xQc and Nmplol, have embraced Saudi sponsorships—though not without controversy.
Sponsoring streamers
Saudi Arabia has also entered the world of influencer marketing, partnering with creators ranging from popular streamers like xQc to small lifestyle bloggers. These partnerships aim to promote events like the EWC and initiatives such as the ultra-modern Neom housing district.
This way, the kingdom directly connects with the millions of fans that tune in to watch content from these influencers—extending their reach not only into gaming, but western social media influencers as a whole.
However, streamer sponsorships aren’t without controversy. Take our boy xQc for example who brushed off the criticism, stating, “there’s nothing wrong with partnering up with Saudi Arabia.” His stance highlights the growing divide among streamers regarding these lucrative but controversial deals.
Then there’s Nmplol, who might not have made any bold public statements, but his actions speak volumes. During the 2024 EWC, both he and xQc saluted the Saudi Crown Prince during a broadcast as part of a sponsorship.
The whole thing felt like a sellout moment and left viewers with an ick. Some defended it as a necessary financial gain, while streamers like Pokelawls rightfully criticized their choices.
Esports organizations depend on the oil money
Even as esports gains recognition, the industry still faces financial challenges. Unlike traditional sports, many esports organizations struggle to secure stable sponsorships. For many, Saudi Arabia’s investments are a rare source of consistent financial support.
Brands that once eagerly invested in high-profile teams are now reassessing their commitments due to disappointing returns. HP had to cut back on team deals, and BMW backed out completely. Others, like Mercedes-Benz, are adopting more strategic approaches,sponsoring only specific events and streamers for greater impact and cost control.
Athletes and teams now face a dilemma: Either accept the Saudi money to stay competitive and potentially upset their fans, or look elsewhere and risk losing financial support altogether.
Saudi Arabia’s influence will grow further
Saudi Arabia isn’t just dipping its toes into esports—it’s diving in headfirst. With billions of dollars and big plans, the country aims to make gaming a cornerstone of its future. From hosting huge events like the Esports World Championship, to sponsoring major streamers like xQc, the kingdom is making moves.
For many, this feels like the push esports needed to level up. For others, it raises big questions about whether gaming is being used as a PR tool to cover up human rights controversies. And that’s the tricky part. Is it sportswashing? A smart business decision? Maybe a bit of both? Whether this is a game-changer or a sell-out moment depends on your perspective.
