Revenues from esports, competitive video-gaming, are increasing dramatically as audience growth and commercial awareness escalate, particularly amongst the younger generations.
According to a recent report, the esports market has now reached €240 million (£222.7 million), with some events even filling arenas.
Revenue comes predominantly from sponsorship, advertising and media rights, as well as ticketing and game publisher fees.
Advertisers are increasingly eager to tap into the 380 million-strong market of esports fans worldwide. The report estimates that by 2020, 60 per cent of the industry’s revenue will come from advertising, with revenues from media rights expected to increase by 500 per cent between 2016-2020.
Germany, which holds a 29 per cent share of the whole European market, is a particularly significant driver of growth, with the League of Legends European Championship being headquartered in Berlin.
While a relatively new market, traditional investors are becoming increasingly interested in esports. 2018 saw a record number of 68 merger and acquisition transactions in the space, compared with just four in 2014. The report predicts that “this trend is only beginning”, adding that there is even speculation that esports could be included at the 2024 Olympics in Paris.
Is your company involved in the manufacture, design or development of processes or technology in a unique manner in the gaming sector in the UK?
If so, there is a significant chance you could qualify for money back from the government for research and development (R&D).
At Beavis Morgan, our specialist team of tax and engineering professionals has made many successful claims on behalf of our clients across a variety of sectors including software development, online gaming, manufacturing, engineering, advertising and telecommunications.
The reliefs can be extremely beneficial for those engaged in qualifying R&D, and we can help your company maximise the benefits of the reliefs by:
- Determining whether you are a qualifying company
- Helping you to assess whether any of your activities qualify
- Reviewing your activities to make sure you claim all that you are entitled to
- Working closely with you to prepare and submit your claim to HM Revenue & Customs
To find out more or to arrange for a no obligation preliminary meeting on how your company could qualify under the R&D scheme, contact us using this link or call us on + 44 (0) 20 7417 0417.