A few years ago, youth and scholastic esports looked like one of the most promising areas in the industry. Schools were getting involved, organizations were popping up, and kids were excited about competing in something they genuinely loved. But lately, there’s been a major shift—and not in a good way.
Over the past couple of years, I’ve watched youth and K–12 esports take a hit. And one of the biggest reasons? Privately held companies more focused on making a quick buck than building a quality, sustainable service.
When One Bad Experience Reflects on the Whole Industry
At North Carolina Esports Academy, we’ve worked hard to create positive, meaningful experiences for students and schools. But the damage caused by a few bad actors in the industry impacts everyone. If a school or parent has a negative experience with a for-profit esports group, they often assume “esports doesn’t work”—instead of realizing it was just that company that failed to deliver.
This mindset is tough to overcome and is slowly chipping away at the trust schools and families once had in the potential of youth esports.
Let’s Talk About Nonprofits (and What They Actually Mean)
Before going any further, it’s important to clear up a common misconception. The term “nonprofit” doesn’t mean an organization isn’t making money. It simply means:
- They don’t pay taxes the way for-profit businesses do, and
- They don’t distribute profits to owners or shareholders.
That’s why most major sports governing bodies are nonprofits:
- US Youth Soccer Association
- National Collegiate Athletic Association (NCAA)
- North Carolina High School Athletic Association (NCHSAA)
- North Carolina Youth Soccer Association (NCYSA)
The majority of high schools, universities, and local youth sports programs are also nonprofits—or at least structured as non-taxable entities. These groups are often required to disclose their financials, which helps create a layer of accountability and reduces the risk of shady business practices.
The Problem With Some For-Profit Esports Companies
The esports boom led to a lot of companies jumping into the scene—not because they believed in the mission, but because they saw dollar signs. Many were created with the intent of scaling fast and selling quickly for a big payout. And while there’s nothing wrong with building a successful company, the problem comes when the youth and schools become a means to an end, rather than the focus.
To be clear: you have to make money to survive—even nonprofits need revenue to operate. But the mission should always be about serving young people, not chasing a personal payday at their expense.
The Ones Doing It Right
Thankfully, there are organizations doing this work the right way. North Carolina Esports Academy is one of many who are focused on building high-quality, sustainable programs that truly serve the youth. We’re not trying to cash out. We’re trying to build something that lasts.Our success has come not from flashy promises or overpriced services, but from building real relationships, delivering value, and keeping the mission centered around youth development and education.
Final Thoughts
The future of youth and scholastic esports doesn’t depend on hype—it depends on trust, quality, and doing what’s right. We need fewer get-rich-quick startups and more organizations committed to building programs that actually serve students and schools.
Esports isn’t the problem. The way some companies have handled it is. And as long as we focus on community, education, and accountability, there’s still a very bright future ahead.
