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

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.