Overwatch Esports: Struggles, Regulations

However, Overwatch league prohibits teams from having sponsors related to cryptocurrencies, AI/ML, or NFTs.

The Activision A late-year failure marked Blizzard’s high-profile Overwatch League franchise competition, which was thwarted by teams’ economic struggles and setbacks caused by the pandemic.

Presently, a new Overwatch competitive league is forming around the critically acclaimed hero shooter Overwatch 2, but it opposes cryptocurrencies.

Overwatch Champions Series Emerges Amid Economic Struggles

Last week marked the introduction of the Overwatch Champions Series, a more inclusive competitive structure supervised by the renowned esports tournament operator ESL FACEIT Group.

The league’s official regulation, which imposed certain restrictions on team sponsors, was published on Wednesday.

It is prohibited for teams participating in the official league to have sponsors affiliated with “cryptocurrencies and cryptocurrency exchanges,” “artificial intelligence/machine learning,” or “NFTs.” James Fudge, the editor of The Esports Advocate, initially observed the limitations.

In recent years, the esports and cryptocurrency sectors have become intricately linked, with cryptocurrency companies providing substantial sponsorships to teams and leagues.

The most substantial was ten years and $210 million in naming rights with Team SoloMid (TSM), which FTX acquired from TSM. Additionally, FTX and Riot Games signed a seven-year sponsorship agreement for FTX’s Legends Championship Series (LCS) division in the United States. The agreement’s value was disclosed to be close to $100 million.

However, since the demise of FTX in late 2022, such transactions have become less prevalent.

This may be partially attributable to a decline in the amount of cryptocurrency capital being invested during 2023. Still, it could also signify esports companies’ reluctance despite the economic difficulties that have gripped the gaming industry.