General
The Impact of Russia’s Illegal War on Esports in Russia
In the aftermath of Russia’s illegal war on Ukraine, the esports industry has been significantly disrupted, with numerous teams and players grappling with the consequences. One such entity that has faced substantial setbacks is the Russian esports team, Gambit Esports, which has been embroiled in financial and operational difficulties, ultimately leading to its dissolution.
MTS Faces Financial Setbacks in Esports
Mobile TeleSystems (MTS), a prominent telecommunications company in Russia, has encountered substantial financial losses, amounting to 207 million rubles (ca. 2 mln USD), due to the revaluation of Gambit Esports. The company acquired Gambit Esports in 2017 for a deal amounting to 313 million rubles (ca. 3 mln USD), inclusive of deferred payments, and has often referred to it as one of the largest esports teams globally.
Gambit Esports was renowned for having players in various gaming disciplines, including Counter-Strike: Global Offensive (CS:GO), League of Legends, Dota 2, and FIFA, later expanding into Apex Legends and Valorant. In 2021, the International Esports Federation awarded Gambit Esports as the best team of the year for their achievements in CS:GO, where they repeatedly secured the title of world and European champions. Furthermore, in the same year, Gambit Esports entered into a partnership with the football club Monaco and saw MTS launch the streaming platform Wasd.
The Downfall of Gambit Esports
The onset of issues for Gambit Esports, and other Russian esports teams, began in the spring of 2022, following the commencement of Russia’s illegal war on Ukraine. According to MTS documents, the team was barred from international tournaments, resulting in a significant loss of income from advertising and prize money.
Information from game-tournaments.com reveals that Gambit Esports effectively ceased operations in the summer of 2022. The CS:GO team was sold to the American Cloud9, while players from Dota 2 and Valorant were released, and the Apex Legends division and media team were shut down.
In the spring of 2023, MTS President Vyacheslav Nikolaev announced that the company would be halting its investments in esports as it did not directly influence the subscriber count. MTS’s press service chose not to comment on the state of affairs within Gambit Esports.
Ripple Effects Across the Esports Industry
The repercussions of Russia’s illegal war on Ukraine have not been isolated to Gambit Esports. Other esports teams have encountered similar predicaments. Esports holding company Esforce, part of the VK holding, sold its team Virtus.pro to Armenian businessman Aram Karamakunyan, following which the team relocated to Armenia. Team:Spirits, specializing in Dota 2, moved its operations to Belgrade.
Conclusion
Russia’s illegal war on Ukraine has undeniably sent shockwaves through various sectors, with the esports industry being no exception. The dissolution and migration of esports teams, coupled with financial losses and operational halts, underscore the far-reaching implications of geopolitical conflicts on the digital and entertainment spheres. The future of Russian esports remains uncertain, as teams navigate through the challenges posed by international sanctions and the ongoing global response to the conflict.
📸: Yves Tennevin, CC BY-SA 3.0
