Do Large Prize Pools Secure Esports’ Future—or Put It at Risk?

By Aaron James Stead

Esports has become synonymous with record-breaking prize money. Events like Dota 2’s The International and Fortnite’s World Cup have dazzled audiences with multi-million-dollar rewards, catapulting players into the global spotlight. But as the industry grows, so does the debate: do massive prize pools represent a path to long-term sustainability, or are they pushing esports toward over-commercialisation?

A Magnet for Attention

There’s little doubt that big numbers draw headlines. A $30 million prize pool not only excites fans but also attracts mainstream media, investors, and sponsors who might otherwise ignore competitive gaming. For developers, high-stakes tournaments serve as marketing engines, showcasing their games to new audiences and lending esports a level of legitimacy once reserved for traditional sports.

Players benefit as well. Eye-catching payouts encourage competitors to pursue gaming as a full-time career, raising the level of play and deepening professionalization. Some publishers have even found innovative ways to tie prize funding directly to fan engagement. Valve’s use of battle passes, for instance, allows Dota 2 supporters to contribute to prize pools, embedding the community in the spectacle.

Case Study 1: The International (Dota 2)

Valve’s The International is the most famous example of a prize pool-driven model. In 2019, its $34 million purse set a record for esports, largely crowdfunded by fans. The event has become an annual spectacle, but critics argue that the entire Dota 2 ecosystem now revolves around a single tournament. Teams and players outside the top tier often struggle financially in the months between majors, raising questions about whether the model is sustainable.

The Fragility Beneath the Hype

Critics argue that this model builds excitement without stability. With so much focus on blockbuster tournaments, smaller leagues and grassroots scenes often struggle to survive, leaving few entry points for emerging talent. “It’s a winner-takes-all economy,” one industry observer noted. “The stars shine, but the rest are left in the shadows.”

Dependence on publishers and investors adds another layer of uncertainty. Unlike traditional sports, where revenue flows through broadcasting rights and merchandising, many esports ecosystems remain reliant on developer funding. If a publisher scales back investment or shifts focus to a new title, entire competitive scenes can collapse—a pattern already seen in several battle royale games after their initial boom.

Case Study 2: League of Legends (Riot Games)

In contrast, Riot Games has pursued stability through franchised leagues such as the League of Legends Championship Series (LCS). Instead of a single high-stakes event, Riot focuses on steady player salaries, team revenue sharing, and structured seasons. While prize pools are modest compared to Dota 2, the ecosystem has thrived for over a decade, creating sustainable careers and attracting long-term sponsorships from brands like Mastercard and Nike.

Commercialisation vs. Community

There are also cultural implications. Esports was born from grassroots communities and online subcultures, where passion often outweighed profit. Some fans fear that the obsession with headline-grabbing prize pools risks turning esports into pure spectacle, eroding the authenticity that made the industry distinct.

Different publishers have responded in different ways. Riot’s league model prioritizes stability, while Valve leans into spectacle. The contrast highlights the fork in the road facing esports today.

A Balancing Act

The question, then, is not whether large prize pools are good or bad, but whether they can coexist with sustainable infrastructure. Esports thrives on the attention and legitimacy that big-money events bring, but without investment in coaching, grassroots development, and consistent league play, the industry risks being built on shaky foundations.

As esports moves deeper into the mainstream, the industry faces a choice: chase short-term spectacle or build a balanced ecosystem that can endure. The future may well depend on how developers, teams, and fans answer that question.