For a sport to succeed it needs to be profitable. Sadly, it is not about entertainment, it is more about business.
We've got two heavyweights in the entertainment arena: horse racing and eSports. A head-to-head between the oldest sport in the world, and a new player on the block is an interesting comparison.
They might be two completely different sports, with horse racing being more traditional and eSports being more futuristic.
It's like an elderly gentleman getting into a fight with a youngster.
However, it all boils down to money. How much revenue does each sport generate?
Horse racing is a sport that heavily relies on several factors, and it is the main driving factor of the sport.
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On the other hand, eSports doesn’t have such a big money related scene.
In this article, we'll dissect the money game of horse racing and eSports, determining where the money comes from, what makes them lucrative, and, hopefully, determining who is the genuine money champ.
Let’s go.
How is Horse Racing Generating Money
First up, we have horse racing, the granddaddy of sports. But when it comes to money, how does it stack up?
Horse racing has always been tied with money. It is considered one of the richest sports in the world.
After all, prize purses can go up to $30 million, which is a lot.
But how horse racing generates revenue?
Horse racing has a couple of revenue streams.
Betting is a big deal in horse racing. People place bets on which horse will win, and those bets turn into a good chunk of change. Racecourses also make money from selling tickets to folks who want to see the action live. Plus, they score big with sponsorships, especially for big-name races like the Kentucky Derby.
But that’s not all. The sport has a breeding part that generates millions of dollars each year.
How is eSports Generating Money?
Now, let's talk about eSports, where video gamers will become the highest-paid athletes in the future.
Even though it's newer, eSports is no slouch when it comes to making money.
The industry is already worth $1.4 billion, and it has been active for a couple of years. Certainly is not long enough to compare it with horse racing.
First things first, there's the prize money from tournaments, which is a lot!
These competitions dish out serious cash to the best players and teams.
But here's the kicker: the internet. eSports lives online, and platforms like Twitch and YouTube are turning eyeballs into dollar signs through ads, subscriptions, and even fans tossing coins at their favorite gamers. And sponsors? They're all aboard, wanting a piece of the eSports pie.
Of course, thanks to the internet, the revenue-generating possibilities are truly limitless. We have special in-game cosmetics and other purchases that bring in a ton of money.
Also, a large contribution to the revenue of eSports comes in the form of sponsorships. But this goes for any other sport on the planet.
Revenue Streams Compared
What's the secret sauce behind the money-making magic of horse racing and eSports?
Well, for horse racing, it's all about the buzz around big races and the thrill of betting. People love to bet on their favorite horses, and that brings in the dough.
One thing is for sure, horse racing wouldn’t be the same without betting.
The prestige and history of races like the Kentucky Derby make them a cash magnet. Plus, technology is giving betting a boost, making it easier and more exciting.
On the eSports side, it's all about being digital. Online streaming platforms make eSports accessible to anyone with an internet connection. Gamers can connect with fans directly, and that brings in cash through ads, subscriptions, and even virtual tips from viewers. Sponsors are also jumping on board, wanting to get their products in front of the massive eSports audience.
Which is More Profitable?
Now, the million-dollar question: which one's the big-money winner? Well, it's not that simple.
First of all, if we talk about the value of both of these industries, horse racing is a clear winner. Compared to the miserable $1.4 billion value estimation of eSports, horse racing is valued at around $400 billion.
However, this doesn’t mean that the horse racing industry is actually more profitable. In fact, the rise of eSports is what’s surprising.
The growth rate of eSports suggests that the sport will overcome even more popular sports like basketball and football in the future.
Horse racing shines with its history and traditional charm, while eSports is all about riding the digital wave. Both are money-makers in their own right, and the winner depends on what you're looking for - classic prestige or modern tech-savvy appeal.
