The value of esports in the UK

A study for Ukie by
Olsberg • SPI with Nordicity
The value of
esports in the UK
October 2020

Foreword and introduction
The global esports phenomenon

What is esports?
Why esports represents such a big opportunity for the UK

How big is esports and how fast is it growing?
Revenue and Economic Impact
The value to local economies
Key Impacts and the Potential of a Major UK event
How can the UK esports sector grow further?
Ukie’s Recommendations for Growth
Appendix
Economic Impact Methodology
Contents
03
10
24
31
34
37

In 1980 Atari ran the Space Invaders Tournament. It attracted over 10,000
participants and was won by Rebecca Heineman. It would have been hard
to predict that playing and watching organised and competitive video
games – esports – would be the world’s fastest growing entertainment
sector 40 years on.
But that is what has happened. A global sector at the intersection of
technology, creativity, broadcast and entertainment – all areas of real
national strength for the UK. This report shows us that the UK has a strong
and growing esports industry, but that there is more to do to capture the
full potential of this exciting, high-growth sector.

Ukie, in its capacity as the trade body for esports, looks forward to
continuing to work with industry and Government to make the UK
a global hub for esports.
Foreword
Dr Jo Twist OBE, Ukie CEO

4 | Foreword and Introduction
Ukie is the trade body for the UK games and interactive entertainment industry.
With over 480 members, we represent games business of all sizes, from small
start-ups to large multinational developers, publishers, service companies,
charities and academic institutions, working across PC, console, mobile, online,
esports and immersive technologies.

As well as supporting our members by connecting them with one another and
promoting their innovative games and services, we keep policy makers informed,
ensuring essential support measures are provided by government for games
companies and players alike.
About Ukie

5 | Foreword and Introduction
Against the backdrop of opportunity and growth in UK esports, Ukie
commissioned Olsberg•SPI with Nordicity to evaluate the scale of
the sector in this study.
The study assesses the economic impact of UK esports, and also provides an
overview of the sector and its impact on regional economies. It also examines the
breadth of businesses active in the sector, and includes a set of recommendations for
the future growth of esports.
Olsberg•SPI with Nordicity previously assessed the impact of esports to the UK’s
economy and its role in the UK’s games industry in the 2018 study Screen Business,
published by the British Film Institute. Since 2016, the base year for Screen Business,
esports has continued to see strong growth in the UK and beyond – as shown by the
results of this Study.
About this study

6 | Foreword and Introduction
The esports sector has grown at an annual
average rate of 8.5% between 2016 and 2019.

The sector supported over 1,200 jobs in 2019.

The UK esports sector represents just under
8% of the global market.
The UK esports sector supported £111.5 million
in Gross Value Added (GVA) in 2019.

A major global esports event could generate 238 full-time
equivalents (FTEs) of employment and £12 million in GVA
for the UK economy.

Headline findings

7 | Foreword and Introduction
Esports is one of the global screen industry’s most innovative and fast-grow-
ing areas – a vibrant and diverse sector right at the cutting edge of audience
engagement and technology. Esports are built on top of the intellectual
property of a video game, straddling the creative industries, live events,
broadcast media, technology and more.

Esports involves organised, structured and competitive playing of video
games, often in an online or physical spectator space. There are many
different esports that are played, including League of Legends,
Counter-Strike, Dota 2, Overwatch, Fortnite, and FIFA.
The global esports phenomenon
885 major esports events
in 2019, with $167.4 million
in total prize money
Source: 2020 Global Esports Market Report, Newzoo
$1.1 billion Predicted total
revenues of esports in 2020 –
annual growth of 15.7%
Source: 2020 Global Esports Market Report, Newzoo
495 million Predicted total
global esports audience
in 2020
Source: 2020 Global Esports Market Report, Newzoo

8 | Foreword and Introduction
The UK esports landscape
Esports is an ecosystem that spans grassroots and amateur play up to highly-
remunerated professionals playing in arenas in front of a significant global viewership.

As outlined by the widening interest in esports during the COVID-19 pandemic, the
sector is highly innovative in reaching and engaging audiences – offering social,
cultural and economic value.

The latter aligns with an increase in recognition in the economic value of the UK’s
digital and creative industries. According to Department for Digital, Culture, Media
& Sport (DCMS) data, the creative industries contributed £111.7bn in GVA to the UK
economy in 2018 and grew 7.4% over 2017-2018 compared to a 1.4% rate of growth for
the economy as a whole.
The UK is part of the global esports growth story, with
UK esports estimated to have grown at an annual
average rate of 8.5% between 2016 and 2019.

9 | Foreword and Introduction
Economic value of esports in the UK in 2019
G VA
Direct £61.4m
Indirect £30.0m
Induced £20.1m
Total £111.5m
Employment
Direct 404 FTEs
Indirect 487 FTEs
Induced 323 FTEs
Total 1,214 FTEs
Esports
Services
Games
Publishers
Streaming
Platforms
Visitor
Spillovers

What is
esports? Why the sector represents such
a big opportunity for the UK

11 | What is Esports?
These span the digitisation of content distribution and business models, as well as
developments in audience viewing habits and methods of engagement, including the ability
to livestream gameplay and develop online communities.
As a result, esports tournaments, leagues and events command major global audiences.
The 2019 Fortnite World Cup, for example, carried a $30 million prize pool, and took place
at New York’s Arthur Ashe Stadium. An estimated 2.3 million viewers watched the final
on Twitch and YouTube.

Esports has rapidly professionalised. While amateur play and engagement remains a major
component of the sector, top-level players are highly-remunerated professionals. There
has been an increase in investor and commercial interest, with major brands such as BMW,
Intel, BT and HP undertaking esports partnerships and sponsorships.
The wider emergence of esports as a global phenomenon has
occurred alongside a number of trends and structural changes.
Overview
Sources: The Fortnite World Cup drew more than 2.3 million concurrent viewers.
PCGamer, 31st July 2019 / Esports Arena: Games Done Quick Raises $400K to
Aid Coronavirus Efforts. Hollywood Reporter, 22nd April 2020

12 | What is Esports?
The UK esports landscape consists of a highly innovative and diverse range of
businesses. These include esports teams, tournament operators, venues and
content creators. A selection of case studies is outlined in this section.

Fostering a sense of community in the esports sector is important. Creating
both online and offline spaces where likeminded fans and/or players
can meet, compete and watch events and tournaments has been
critical. Branding – both in terms of team identity and through
related merchandise – is an integral component of this.

Strategic partnerships are also key. These provide the
different organisations with funding opportunities,
status, global reach or an avenue to create training
or education programmes.
The esports ecosystem

13 | What is Esports?
Esports shares some characteristics with
traditional sport and its structures.
• Both are ecosystems with a basis in organised
competitive play – whether for fun between friends or
between professional and highly-trained individuals
or teams.
• Some esports and sports share similar models – such
as the franchising of teams and the use of home and away
city-based formats by some leagues.

• Use of sports science and training philosophy –
professional esports teams will have high-end
training facilities with consideration given to all areas of
performance such as nutrition and sports psychology. •
Media rights that are increasing in value – according
to Newzoo, in 2020 $822.4 million in revenues, or three
quarters of the total market, will come from media rights
and sponsorship. This is forecast to increase to $1.2 billion
by 2023.

• But there are differences – not least the fact that the
underlying game around which an esport is played is a
commercially-owned product, unlike most
traditional sports.

Comparisons with traditional sport

14 | What is Esports?
The esports sector is composed of a diverse
and wide range of participants and businesses.
It also impacts a host of support businesses
Core
• Teams
• Games companies
• Events & tournaments
• Players
• Esports streaming services
• Dedicated venues
• Esports employees at games
companies and streaming services
• Associations and organisations
Esports Related
• Services, technology & equipment
• Professional services
• Venues
• Media
• Merchandise businesses
Spillover
• Hotels
• Hospitality businesses
Participants in the UK esports sector
Our case studies (P15 -20) show just some
examples of the breadth of activity that
makes up the UK esports sector.

15 | What is Esports?
Excel
Excel is a British competitive gaming culture
brand which has struck a range of branding and
commercial partnerships that underline the
growing appeal of esports.
Incorporated in 2015, the organisation has seen
rapid growth since joining Europe’s largest league,
the League of Legends European Championship, in
2018. Excel now has 11 players (including four British
players) across three teams competing in
two esports, and 20 staff.
Fnatic
Fnatic is a global esports entertainment brand that
has been fielding successful esports teams since
2004, winning over 200 championships across
30 esports.

Fnatic has teams across the world, most recently
setting up the first top tier team in India.
Teams

16 | What is Esports?
The NUEL
The National University Esports League (NUEL) is
the longest-running university tournament organiser
in Europe. Set up in 2010, the NUEL underlines the
developmental work taking place in esports, the
creation of communities and the establishment of
pathways into the esports sector.
The NSE
The NSE was established in 2017 to provide a
brilliant esports experience to university students
across the UK. The NSE works with British
Universities & Colleges Sport to provide competition
between universities, while also focussing on skills,
employability, and community.
Grassroots

17 | What is Esports?
Events and tournaments
ESL UK
ESL UK was established in Leicester
in 2012. It runs major esports events
such as ESL One Birmingham that
attract tens of thousands of attendees
and millions of viewers online, as well
as providing production services
to brands.

ESL UK is the lead partner in the
Weavr consortium, backed by the
Government’s Audience of the Future
Challenge Fund. The consortium is
building a technology platform to
revolutionise the viewing experience
for both esports and traditional sports.
Gfinity
Gfinity is a London-based esports
solutions company that exports
services around the globe.

Gfinity opened the UK’s first dedicated
esports arena in 2015 in partnership
with Vue.
Gfinity has operated events ranging
from the ePremier League through to
F1 Esports Virtual Grand Prix series.
Epic.LAN
Epic.LAN is a traditional UK based
Bring Your Own Computer (BYOC)
event organiser.

With a history spanning more than a
decade, it is a mainstay of the UK’s
grassroots esports scene.

Epic.LAN’s events have grown, and
now host hundreds of attendees three
times a year. These events boost local
economies, with impacts on hotels
and restaurants.

18 | What is Esports?
EGL
Launched in 2009, EGL is a tournament
platform operator.

EGL runs tournaments and events on its proprietary
online gaming platform egl.tv, and also provides
operation management services to clients. EGL is
based in London and works globally across Asia,
the Middle East and South America.

FACEIT
FACEIT, headquartered in London, has produced
some of the UK’s biggest esports events and also
operates the world’s most active competitive
platform for online multiplayer games.

FACEIT events have including the $1 million FACEIT
London Major, the largest esports event in UK
history which sold out the SSE Arena, Wembley
and saw over 62 million hours of content watched.
Its online platform has more than 18 million users
competing in 30 million game sessions each month.
Technology and service providers

19 | What is Esports?
Dedicated venues
Belong
Belong Gaming Arenas is the UK’s
largest chain of gaming arenas
which service grassroots gaming
communities.
Belong has a network of 23 arenas
across the UK. Each arena has its
own community or team of gamers,
and each has their own a badge and
apparel. These include the Norfolk
Nighthawks, Preston Invincibles,
Sutton Spectres and
Clyde Claymores.
Platform
A venue dedicated to social video
gaming and esports, Platform mixes
high-quality food and drink with
competitive play to bring esports to a
wide audience.

With a first venue in London, Platform
is growing quickly and expanding
to other cities across the UK. It has
demonstrated the broad appeal
of esports.
Red Bull gaming sphere
The Red Bull Gaming Sphere is a
gaming and esports venue in the heart
of London, offering the UK community
cutting-edge technology, regular
meetups and competitive events,
and a turn-key venue for publishers,
tournament organisers and
content creators.

20 | What is Esports?
Activision Blizzard
Activision Blizzard is one of the world’s largest
games businesses, with a major presence in the
UK. Activision Blizzard runs two major, global
esports leagues.
Each of these leagues feature a London-based
franchise: the London Ravens and the London
Spitfire, respectively. These franchises employ
not only professional players, but also significant
support staff.
Electronic Arts
Electronic Arts (EA) is a global leader in digital
interactive entertainment. As well as delivering the
world’s most popular sports games in the FIFA and
Madden franchises, they are innovating in bringing
competitive gaming experiences to new genres and
audiences.

The launch of Sims Spark’d in the summer of 2020
saw a reality-TV approach to esports brought to a
whole new audience in the diverse player base of
The Sims 4, and marked the start of a new approach
to esports in the industry.
Games companies

21 | What is Esports?
Esports and the COVID-19 environment
Like many other sectors, parts of esports have been badly disrupted by the COVID-19
pandemic with the cancellation of live events. However, some events have continued
remotely. At the same time, the effects of the pandemic have underlined the innovation,
flexibility and potential of esports. There has been increased consumer appetite and growth
in engagement alongside growing cultural acceptance.
A number of sports delivered esports alternatives with lockdowns in place. Formula 1 streamed
its first ever Virtual Grand Prix, for example, with virtual races held for every postponed Grand
Prix and featuring a number of current F1 drivers. In the US, NASCAR introduced the eNASCAR
iRacing Pro Series.

Broadcasters have also used turned to esports to fill schedules. For instance, the BBC has shown
professional League of Legends matches during lockdown. Esports has provided entertainment
and engagement for millions of people during lockdown.

22 | What is Esports?
The social value of esports
The COVID-19 pandemic has highlighted the social benefits of
esports, and the sector’s ability to bring people together remotely.

Esports is a highly sociable activity across both digital and
physical arenas. There are clear social benefits for communities
of supporters and their engagement is clear from the number of
consumers who extend their interest into physical travel to events
and tournaments. This in turn creates economic impacts for cities
and venues hosting tournaments.

The esports audience is also diverse. A 2017 GameScape report
underlined the diversity of esports viewership in age terms,
concluding that in the median age for esports viewers in the US is 28.
Nearly half held a college degree, and 55% were employed full-time.
In China, 75% of esports viewers held full-time jobs and 71% had a
college degree. The majority of esports viewers had spent money
on esports-related goods.
Source: Who Watches eSports? Interpret Releases Report that
Busts Myths about eSports Viewers. Business Wire, 23rd February 2017

23 | What is Esports?
Wider impacts of esports
Esports also have wide-ranging impacts on other businesses – including
entities with no direct attachment to the esports landscape, such as hotels,
logistics firms and venue operators.

Some venues are esports-specific – such as Game’s Belong Gaming Arenas.
Other general venues will be utilised by the sector on a tournament-by-
tournament basis, such as the NEC Group’s Arena Birmingham, which plays host
to ESL’s ESL One Birmingham Dota 2 event.

The Call of Duty World League has also held heats at the Copper Box Arena at
London’s Queen Elizabeth Olympic Park. Organised by Gfinity, the production
of the event demonstrates the scale of esports’ wider impact on non-sectoral
businesses. For the event, two outside broadcast trucks were hired with 23
cameras in use, as well as laser projectors and screens.
Source: Duty calls for Gfinity and NEP at Copper Box Arena. SVG Europe, 1st July 2019

How big is esports and
how fast is it growing? Revenue and
economic impact

25 | How Big is Esports and How Fast is it Growing?
Esports revenue has grown substantially over the past five years
.
According to Newzoo, global esports revenue in 2019 was $950.6m. It predicts that global
esports revenue will increase to $1.1bn in 2020.
The esports sector in the UK (excluding publishers and tourism spillovers) earned an
estimated £60m in revenue in 2019, just under 8% of the global market (£745m).

Which has translated into jobs growth.
The UK’s esports sector grew at an average annual rate of 8.5%* between 2016 and 2019.
According to Screen Business, there were 280 direct FTEs in the UK esports sector in 2016.
Excluding game publishers and tourism spillovers (and thereby providing a consistent
time-series between 2016 and 2019) there were an estimated 358 FTEs of direct employment
the UK’s esports sector in 2019.
Revenue, jobs and growth
* Average annual industry growth 2016 to 2019 (based on like-for-like total employment
in esports services and esports employment at video games publishing companies in the UK)

26 | How Big is Esports and How Fast is it Growing?
Economic impact for the UK
G VA
Direct £61.4m
Indirect £30.0m
Induced £20.1m
Total £111.5m
Employment
Direct 404 FTEs
Indirect 487 FTEs
Induced 323 FTEs
Total 1,214 FTEs
This total economic impact includes contributions from companies and
organisations that provide esports services and streaming platforms,
video game publishing companies and the visitor-tourism industry
(e.g. hotels, restaurants, bars) that benefits from inbound visitors to
live esports events in the UK. The UK’s esports sector generated
an estimated 1,214 FTEs of total
employment and £111.5m in GVA
for the UK economy in 2019
Note: See Appendix for description of methodology

27 | How Big is Esports and How Fast is it Growing?
Companies and organisations that provide esports services
generated 915 FTEs and £84.4m in GVA in the UK in 2019
Esports services industry impact
G VA
Direct £47.0m
Indirect £22.1m
Induced £15.3m
Total £84.4m
Employment
Direct 328 FTEs
Indirect 351 FTEs
Induced 237 FTEs
Total 915 FTEs
The esports services industry includes companies
and organisations in the UK that are engaged in
the provision of esports tournaments, leagues and
teams. It excludes streaming platforms and
games publishers.
The 18 leading companies and organisations
comprising the UK’s esports services industry
directly employed an estimated 328 FTEs in 2019,
and generated direct GVA of £47m.
Including indirect and induced economic impacts,
the esports services industry generated a total of
915 FTEs of employment and £84.4m in GVA for
the UK economy in 2019.
Note: See Appendix for description of methodology

28 | How Big is Esports and How Fast is it Growing?
Streaming platforms impact
G VA
Direct £4.3m
Indirect £1.5m
Induced £1.2m
Total £7.0 m
Employment
Direct 30 FTEs
Indirect 24 FTEs
Induced 18 FTEs
Total 72 FTEs
Esports also generates additional income and
economic activity for streaming platforms. In
the UK, Twitch, YouTube Gaming and Level Up
Media (formerly DINGIT) are three of the
leading streaming platforms for esports.
Esports traffic generated an estimated 30 FTEs
of employment at these streaming platforms in
the UK in 2019 and £4.3m in direct GVA .
Including indirect and induced economic impacts,
streaming platforms’ esports traffic generated a
total of 72 FTEs of employment and £7m in GVA
for the UK economy in 2019.
The streaming of esports generated an estimated
72 FTEs and £7m in GVA in the UK in 2019
Note: See Appendix for description of methodology

29 | How Big is Esports and How Fast is it Growing?
G VA
Direct £9.8m
Indirect £6.3m
Induced £3.5m
Total £19.5m
Employment
Direct 40 FTEs
Indirect 110 FTEs
Induced 66 FTEs
Total 216 FTEs
While games publishers play a crucial role across
the entire video games sector, esports currently
represents a small percentage of their overall
business in the UK. Indeed, most of the multinational
publishers’ esports activities are directed from
their US offices.
Esports initiatives accounted for an estimated
40 FTEs of employment at games publishers in the
UK in 2019 (i.e. direct employment). The direct GVA
impact associated with this workforce was £9.8m.
Including indirect and induced economic impacts,
esports activities at games publishers in the UK
generated a total of 216 FTEs of employment
and £19.5m in GVA.
Games publishers’ esports activities in the UK generated
an estimated 216 FTEs and £19.5m in GVA in the UK in 2019
Games publishers impact
Note: See Appendix for description of methodology

30 | How Big is Esports and How Fast is it Growing?
Visitor spillover impact
G VA
Direct £0.3m
Indirect £0.1m
Induced £0.1m
Total £0.5m
Employment
Direct 6 FTEs
Indirect 2 FTEs
Induced 2 FTEs
Total 10 FTEs
Esports also generates an economic impact by
attracting visitors to the UK to attend live events.
There were an estimated 42,000 attendees to live
esports events in the UK in 2019 – including events
such as ESL One Birmingham 2019.
Of these total attendees, approximately 5%, or
2,100 attendees, originated from outside the UK.
Assuming that each of these 2,100 inbound visitors
stayed for a minimum of two nights, the total tourism
spending in the UK would have been approximately
£0.5m in 2019.
This level of inbound tourism spending generated
into a total of 10 FTEs of employment and £0.5m
in GVA for the UK economy in 2019.
The visitor spending associated with esports events
generated an estimated 10 FTEs and £0.5m in
GVA in 2019.
Note: See Appendix for description of methodology

The value to
Local economies Key Impacts, and the
Potential of a major UK Event

32 | The Value to Local Economies
Esports can create unique economic, cultural and soft power
impacts for locations that host major tournaments or teams.
Value to local economies
• As with traditional major sporting tournaments, esports can attract a significant volume of spectators
from other regions and countries who may only be visiting that destination because of their interest in
esports. As a result, it provides the destination with a strong opportunity to market to new demographics.

• For example, Katowice in Poland has become an international destination for esports due to its annual
Intel Extreme Masters (IEM) tournament. In 2019, IEM Katowice attracted a total attendance of 174,000.
By way of comparison, the 2019 FIFA U-20 World Cup hosted by Poland attracted 377,000 spectators.
As with physical sporting events, spectator demand for esports is partly driven by the event-based nature
of specific tournaments.

• Surveys from previous IEMs suggest that approximately one-third of attendees travelled over
200km to Katowice specifically for IEM. In 2018 it was reported that IEM generated Katowice $24.5m
in advertising value. Katowice City Council voted in 2018 to continue promoting and co-organising
the event in collaboration with ESL and Intel, allocating PLN12.5m to promote the event over the
next five years.

33 | The Value to Local Economies
G VA
Direct £6.3m
Indirect £3.3m
Induced £2.3m
Total £12.0m
Employment
Direct 143 FTEs
Indirect 48 FTEs
Induced 48 FTEs
Total 238 FTEs
The earlier analysis of existing live esports events
in the UK indicated that for every 1,000 people
visiting the UK to attend the event, one can expect
an additional £234,000 in tourism spending within
the UK economy, leading to 4.8 FTEs of employment
and £240,000 in total GVA.

If the UK were to host an esports event of similar
scale to IEM Katowice (c.150,000) and also attract
one-third of its attendance from outside the UK,
then 50,000 inbound visitors would generate
100,000 bed-nights and £11.7m in tourism spending.
£11.7m in tourism spending would, in turn, generate 238 FTEs
of employment and £12m in GVA for the UK economy.
Potential economic value
Note: See Appendix for description of methodology

How Can the UK esports
Sector grow Further
Ukie’s
Recommendations
for Growth

35 | How Can the UK Esports Sector Grow Further?
1. Regular engagement
Government engagement can be vital in preventing
any barriers and promoting the growth of a young
industry. Ukie recommends that some form of
regular engagement is established between the
industry and DCMS to advise on growth.
2. Promote the UK’s esports industry
The GREAT campaign promotes the best of British.
Ukie believes that if the Government is serious about
making esports an area of national strength then it
should establish an ‘EsportsIsGREAT’ strand of the
GREAT campaign.
3. Build on British expertise
Esports draws on expertise from many DCMS
sectors, from traditional sports to broadcast media.
We recommend the Government work with the
industry to support the export of esports products,
such as content for linear broadcast, that builds
on the best of British talent and looks at ways to
incentivise more esports production and activity
in the UK.
4. Fund technological innovation
The Government has taken a strong first step
by funding the Weavr Consortium, an esports
demonstrator, as part of the Industrial Strategy’s
Audience of the Future challenge. Ukie believes
that esports can serve as a test bed for technology
with applications across other sectors, and we
recommend the Government back this with a small
and focused Esports Technology Challenge Fund.
How can the sector grow further?

36 | How Can the UK Esports Sector Grow Further?
5. Secure international events
The UK already plays host to large esports events
such as ESL One Birmingham and the FACEIT
Major, but Ukie believes more could be done.
We recommend that the Government work with
industry to offer attractive packages to tournament
organisers to bring their events, as well as the fans
and associated economic benefits, to the UK.

6. Become a customer
The esports audience is young and highly engaged.
As the Government looks to get crucial messages to
this group, it should work with esports businesses to
buy advertising space and run campaigns.
How can the sector grow further?
7. Provide visa clarity
The immigration system is not always clear as
to how esports players and talent should apply
for entry and visas. We do not advocate for any
wholesale changes to our immigration system,
but rather the development and issuance of clear
guidance in partnership with industry.
8. Maintain regulatory stability
The UK must maintain a stable regulatory
environment for businesses. As the UK forges
its new place in the world, outside of the EU, we
must ensure we are attractive to businesses and
investors. Ongoing and clear engagement from
the Government with the video games and
esports industry will be crucial here.

Appendix
Economic Impact
Methodology

38 | Appendix
UK esports revenue and global
market share
• According to Newzoo, global esports revenue
totalled $950.6m or £745.0m in 2019.
1
• This market-size estimate includes revenues
earned from the sale of sponsorship deals, media
rights, digital, streaming, tickets and
merchandising, and publisher fees. The market
sizing only includes revenues from professional
or semi-professional competitive gaming in an
organised format (e.g. tournament or league),
and excludes the revenue associated with the live
streaming of non-organised gaming. •
The average turnover-per-FTE ratio observed
for the three largest esports companies in the UK
in 2018 (£174,967) was adjusted to account
for price inflation between 2018 and 2019
(£177,941) and then multiplied by the estimate of
total employment in the esports services industry
(328 FTEs) to arrive at an estimate of total esports
services revenue in 2019 (£58.3m).
• This estimate of total esports services revenue
was compared to Newzoo’s estimate of global
esports revenue in 2019 (£745m)
2 to arrive at an
estimate of the UK’s global market share of 8.5%.
Economic impact methodology
1
1. NewZoo (2020), NewZoo Global Esports Market Report 2020, available at:
https://newzoo.com/insights/trend-reports/newzoo-global-esports-market-report-2020-light-version/
2. NewZoo (2020), NewZoo Global Esports Market Report 2020, available at:
https://newzoo.com/insights/trend-reports/newzoo-global-esports-market-report-2020-light-version/

39 | Appendix
Economic impact methodology
Economic impact modelling
• For each of the four identified segments of the
UK’s esports sector, estimates were prepared
for the direct, indirect and induced impacts on
employment (as measured FTEs) and GVA. These
estimates were derived using Nordicity’s MyEIA™
Model, which incorporates the Office for National
Statistics’ (ONS’s) 2015 input-output tables.
• Further details of the economic impact
calculations and assumptions can be found in the
rest of this section .

•
Direct impact refers to the employment and
GVA generated directly within companies/
organisations operating within the esports sector*.
• Indirect impact refers to the employment and
GVA generated in industries that supply goods
and services to the esports sector (e.g. marketing,
finance, legal) .
• Induced impact refers to the additional
employment and GVA generated throughout the
UK economy as direct and indirect impact workers
re-spend their income on the purchase of
consumer goods and services
.
* In the case of the tourism spillovers associated with live esports events, the direct impact refers to the
employment and GVA generated at tourist-facing business such as hotels, restaurants and pubs
2

40 | Appendix
Esports services industry
• A combination of primary research and desk
research was used to gather data on employment,
financial performance, employment costs,
audiences and other relevant market data for the
esports services industry in the UK.
• Employment data was obtained for 13 of the 18
leading companies/organisations in the UK’s
esports services industry identified by Ukie’s
esports subcommittee (excluding streaming
platforms and games publishing companies).
This included data for 4 companies sourced
from Companies House filings and data for 7
companies/organisations collected through
an online survey distributed to the 18 leading
companies/organisations in the UK
(as identified by Ukie). •
The average FTE cost for the games industry
found in Screen Business for 2016 (£53,327)
3
was adjusted to reflect consumer prices in 2019
4
(£56,924) and then multiplied by the estimated
number of industry FTEs to estimate direct
employment costs.
• The ratio of GVA to employment costs found
in the ONS’s Annual Business Survey (ABS) or
Screen Business was used to convert estimated
employment costs into GVA.
• The GVA-to-employment-cost ratio for companies
operating with 0-49 employees cohort in the
information and communications sector (2.52)
5
was used to estimate the direct GVA across the
esports services industry.

Economic impact methodology
3
3. BFI (2018), Screen Business, available at:
https://www2.bfi.org.uk/sites/bfi.org.uk/files/downloads/screen-business-full-report-2018-10-08.pdf
4. ONS (2020), Inflation and price indices, available at: https://www.ons.gov.uk/economy/inflationandpriceindices
5. ONS (2020), Non-financial business economy, UK: employment size-band (Annual Business Survey),available at:
https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/datasets/uknon
financialbusinesseconomyannualbusinesssurveyemploymentsizeband

41 | Appendix
Economic impact methodology
Streaming platforms
• In the UK, Twitch, YouTube Gaming and Level Up
Media (formerly DINGIT) are three of the leading
streaming platforms for esports.
• In 2019, esports content accounted for
approximately 25% of Twitch’s global audience.
6
That audience share was applied to estimates of
Twitch’s total workforce size in the UK (c. 67), as
well as that of LevelUp Media (c. 16 to estimate the
portion of their workforces devoted to esports
(17 and 4, respectively).
•
Reports indicate that YouTube Gaming’s
market share was about half of Twitch’s
7, thus
implying that it has nine employees in the UK
devoted to esports.
• In total, therefore, esports generated 30 FTEs of
employment at streaming platforms in the UK
(i.e. direct employment) £4.3m in direct GVA.
• Nordicity’s MyEIA™ model was used to estimate
the indirect and induced impacts of this business
activity at streaming platforms. With the inclusion
of indirect and induced impacts, the total
economic impact in the UK was 72 FTEs
and £7m in GVA.
4
6. Yosilewitz, A. (2019), “State of the stream Q2 2019”, Steam Elements, 12 July, available at:
https://blog.streamelements.com/state-of-the-stream-q2-2019-facebook-gaming-growth-gta-v-surges-and-twitch-influencers-get-more-529ee67f1b7e
7. Valentine, R. (2020), “Facebook Gaming streaming market share sees end-of-year rise”, gamesindustry.biz, 9 January, available at:
https://www.gamesindustry.biz/articles/2020-01-09-facebook-gaming-streaming-market-share-sees-end-of-year-rise

42 | Appendix
Visitor spillover (tourism) impact
• Respondents to the esports industry survey
indicated that there were a total of 42,000
attendees to their live esports events in the UK in
2019. This included events organised by ESL, such
as ESL One Birmingham 2019.
• Survey respondents also reported that (on a
weighted-average basis) approximately 5% of
attendees, or a total or 2,100 attendees, originated
from outside the UK. •
Data from VisitBritain indicate that holiday visitors
to the UK aged 16-44 spent an average of £117
per night
8. Assuming that each of the 2,100
inbound visitors to an esports event stayed for a
minimum of two nights, the total tourism spending
in the UK would have been approximately £0.5m.
• Nordicity’s MyEIA™ model was used to estimate
that this level of tourism spending generated a
total of 10 FTEs of employment and £0.5m in
GVA in 2019, including direct, indirect and
induced impacts.
Economic impact methodology
5
8. VisitBritain (2019), Inbound tourism trends by market, available at: https://www.visitbritain.org /inbound-tourism-trends

43 | Appendix
Economic impact methodology
Estimation of the esports-related
employment at games publishing
companies
• According to Newzoo, the global esports market
will have earned $950.6m in revenue in 2019,
9
or £745m.
• North America is expected to account for 37% of
global revenue in 2019,
10 or £276m. The US
economy accounts for 80% of North America’s
Gross Domestic Product (GDP), and so, likely
accounts for approximately £221m (80% of
£276m) in esports revenue in 2019.

• In 2016, the UK’s esports market was 1/12 the size
of the US market – £6.6m vs. £80.4m.
11 Carrying
forward this ratio to 2019 implies that the UK’s
esports market (i.e. consumer spending on
esports) was an estimated £18m.
6
• Ukie’s statistics indicate that consumer spending
in the UK’s video games market totalled £5.4bn
in 2019.
12
• Of the total consumer market in the UK, we
assume that the large games publishers focus
on their core market of boxed software, digital
and online and console sales. These three
segments accounted for £3.1bn in consumer
spending in 2019.
• We further assume that the major games
publishers are devoting a level of human resources
to esports that is at least commensurate with its
current share of consumer spending in the UK’s
video games market. We further assume that this
share ranges from the share of total spend to ‘core’
spend (as indicated above).
9. NewZoo (2020), NewZoo Global Esports Market Report 2020, available at:
https://newzoo.com/insights/trend-reports/newzoo-global-esports-market-report-2020-light-version/
10. NewZoo | 11. NewZoo | 12. 12 Ukie (2020), 2019 UK Consumer Games Market Valuation, available at:
https://ukiepedia.ukie.org.uk/index.php/2019_UK_Consumer_Games_Market_Valuation

44 | Appendix
Economic Impact Methodology
Estimation of the esports-related
employment at games publishing
companies

• The shares would be (£18m ÷ £5,348m = 0.34%)
and (£18m ÷ £3,071m = 0.59%).
• This share range was applied to estimated
employee counts at each of the leading 15 video
games publishing companies in the UK. The
individual company employment data was
sourced from the UK Games Map.
13 Where the
multiplication of the share implied less than one
FTE at a particular company, it was rounded
up to one FTE.
• This approach indicated that there were
approximately 20 FTEs engaged in esports
business activities across the 15 leading publishing
companies, or 1% of the total employment at
those companies. •
Consultations with selected publishers in the
UK indicated that, by and large, 0.5% of their
UK workforce was devoted to esports business
activities. One publisher, however, did report
(anonymously) that it already had 20 FTEs
devoted to esports.
• Based on the desk research and consultations, we
concluded that there were at least 40 FTEs
engaged in esports business activities at
publishers in the UK in 2019.
• The economic impact ratios from Screen
Business were updated for 2019 and then applied
to the direct impacts to generate estimates of the
indirect and induced impacts, and thereby the
total economic impact of 216 FTEs and £19.5m
in GVA.
7
13. Ukie and Nesta (2020), UK Games Map, available at: https://gamesmap.uk/#/map

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