Vancouver Esports Strategy: 1 2 Vancouver Esports Strategy: 3 Table of Contents Vancouver Esports Strategy Executive Summary 4 What is Esports? 10 Published February 2021 Introduction 10 2020: A digital sporting paradigm 11 The global market 12 Esports subsectors by platform 14 Esports Ecosystem Components 16 Survey responses Method • 308 community Over the course of this study, Vancouver Economic Commission (VEC) assembled Ecosystem leaders 17 a database of BC-based esports leaders comprising more than 100 experts, respondents Governments 18 • 20 esports-related companies and industry organizations to collect local insights and assess the BC organizations ecosystem. Events and venues 19 VEC’s qualitative data collection employed a number of methods, beginning Education and talent development 20 Interviews and with facilitated roundtable discussions (September 2019 through February Esports associations 21 roundtables 2020) that discussed esports events, branding and sponsorships, scholastic • 5 roundtables esports, technology and infrastructure. Qualitative insights drawn from these International Best Practices 22 roundtables helped shape the topics and questions covered in subsequent • 69 organizations What we learned from 11 esports cities 23 • 85 individual leaders one-on-one interviews with business advisors. In addition to pinpointing understanding successes, pain points, opportunities and areas requiring support BC’s Esports Ecosystem Assessment 26 in the BC ecosystem, VEC collected additional insights from individual interviews with industry experts to identify and map esports communities and industry Canada’s role and context 27 nodes across BC. BC’s esports ecosystem today 29 Project Funders and Upon completion of the interviews and community mapping, VEC deployed BC esports leaders 44 surveys to these communities to gather quantitative demographic, habitual and Stakeholders Gap Analysis 46 predictive data. As BC esports communities were instrumental in distributing • Western Economic the survey, responses featured in this report’s BC’s role and context section Investment and capital 47 Diversification Canada are reflective of participants in BC’s esports communities and distinct from • TELUS the general population of gamers (casual or otherwise); therefore, they may be Education and training 50 • Vancouver Hotel incidental to trends in non-esports video gaming communities. Professional associations 54 Destination Association • Tourism Vancouver VEC contextualized its BC ecosystem assessment with additional 2018 Gaming Immigration pathways 55 Community Data and 2019 Gaming Industry Data published by the Entertainment Strategy Recommendations 56 Vancouver Economic Association of Canada. To provide further context for a gap analysis and strategy, Commission Team VEC commissioned TwogNation – an esports organization specializing in esports At the local level 58 networking – to deliver an international assessment of Vancouver’s esports • Shawn Caldera ecosystem, along with a survey of global best practices from 11 notable esports- At the international level 64 • Claire Campbell ready cities across North America, Europe and Asia. • Ingrid Valou Conclusions 70 • James Raymond End Notes 72 • David Shepheard • Shivam Kishore Appendices 73 VEC respectfully acknowledges that it is located on the traditional, ancestral and Appendix A – Acknowledgments: Study Partners & Contributors 73 unceded territory of the Skwx̱wú7mesh (Squamish), Səl̓ílwətaʔ/Selilwitulh (Tsleil- Appendix B – Glossary of Terms 73 Waututh) and xʷməθkʷəy̓əm (Musqueam) Nations. Appendix C – Investment Models 75 4 Vancouver Esports Strategy: Executive Summary 5 Executive Summary As an industry, esports sits at the busy intersection of competitive Figure 1.1 illustrates the general relationships events; government initiatives that facilitate sporting, games development and consumption, tourism and hospitality, between notable player, tournament organizer esports’ development as an industry; and other and fan stakeholder groups or organizations. miscellaneous but critical elements that advance and web-based content creation and broadcasting. The reciprocal interplay between elements the state of esports through sporting or industry in these key areas result in activities that development. Our ecosystem and gap analysis, characterize a healthy esports hub, described in along with strategy recommendations, are based Thanks to the Vancouver region’s proven track This report includes an overview of the four groups or issues: the presence and leadership on the relationships between these foundational record in hosting international sporting events, global and local esports industry, including a of esports participants; the organization of esports components and their presence in the ecosystem. talented community and committed fanbase, summary analysis of leading hubs acting on and attractiveness as a tourism destination, esports initiatives and strategies. Vancouver and BC have all the foundational qualities to capitalize on an industry set to The report will: Figure 1.1 – International esports ecosystem map double its global revenue from $1.1 billion in 2019 to $2.2 billion in 2022. These qualities are Help readers determine the potential Legend further augmented by the province’s recent esports economic opportunity in demonstration of economic resilience and Vancouver and BC Purchasing/donations/betting Rights fee public health management in the context Advertising/sponsorship Revenue sharing (prize, salary, fee) Establish understanding of the steps of the COVID-19 pandemic, combined with required to amplify and enhance increased global interest in esports facilitated esports across the region, and support by lockdown conditions and physical Betting Companies coordination within stakeholders Consumers and Fans distancing measures. Facilitate BC industry leaders’ and The maturation of BC’s esports ecosystem will policymakers’ decision-making process by Esports Teams diversify and strengthen the Western Canadian providing insights into other cities’ success Tournament Organizers economy by attracting more international strategies companies and players, generating revenues Help the local esports community develop Game Developers for the private and public sectors, and hosting valuable partnerships and initiatives with more international sporting events with global esports players and companies significant direct and indirect spinoff benefits, Build on insights with a proposed set of including job creation for local workers. Broadcast Studios strategy recommendations and tactics For the region to assume a global leadership aimed at transforming Vancouver and BC into an international esports hub Players role, however, there must be comprehensive, Tournament Platforms open-minded and strong cooperation between local tourism, telecommunications, venues and athletic talent; as well as support and establishment of government policy, Streaming Platforms community-driven governance, infrastructure development, and corporate and public-sector sponsorship. Venues Sponsors, Brands and Investors 6 Vancouver Esports Strategy: Executive Summary 7 1.2 Issue tree for becoming an esports hub 1.1 cisition o gme ishers 1.2 cisition o esorts tems 1.3 Presence of esports cisition o streming torms Vancouver Titans ecosystem participants 1.4 cisition o tornment orgniers 1.5 cisition o tornment torms 1.6 cisition o rocast stios Ecosystem insights and gap analysis an esports hub a city that make Levers 2.1 rgnition o tornments Organization of 2.2 Estishment o cit eages An independently conducted assessment of proven sport and international conference esports events Vancouver’s esports industry by TwogNation hosting history are tremendous assets, Levers that 2.3 viiit o venes n trining centres indicates that Vancouver has significant complemented by favorable visa policies for make a city an esports room to grow into its potential. Though international esports players travelling to hub Vancouver has established quality components compete in tournaments. All of these factors 3.1 overnment ssiies of a robust esports industry – including should combine to elevate Vancouver’s Government initiatives events hosting and organization prowess, reputation as an inviting and successful to facilitate esports 3.2 Registrtion system or esorts thetes n ormition o esorts development a highly innovative and entrepreneurial esports city. However, despite Vancouver’s 3.3 Resienc rights or esorts thetes startup ecosystem, and robust video games proven capacity to host major sporting events, development and tech sectors – they have there have been no high-profile, international generally operated independently from one esports events held in the region, save for another. These siloes present a significant two major tournaments organized in 2017 and 4.1 Presence o esorts ssocitions hurdle for Vancouver’s development as an 2018 (NA League of Legends Championship 4.2 Other elements Eistence o esorts ection rogrms esports city, especially when compared to 11 of Series and Dota 2: The International 2018 of esports success 4.3 Privte investments the top esports hubs around the world. tournament). Expert insights gathered through VEC- 4.4 Eistence o grassroot commnities n other ocal/region sects facilitated industry roundtables and one-on- Esports associations play a pivotal role one interviews agree that until better cohesion in locating, understanding and uniting is achieved, Vancouver will lag behind leading