Revolutionizing Esports

North Carolina Esports Blog

Why Prize Pools Are Hurting Local Esports

Prize pools in esports have become expected—even at the local, amateur level. And while it’s easy to understand why that trend started, it might be time to pause and ask if it’s really helping the long-term growth of the industry.

To be clear, I’m not talking about major tournaments or elite-level competitions. Players who’ve reached that level deserve every bit of the recognition and reward they get. This conversation is about community-level esports—the local tournaments, school events, and grassroots competitions that make up the foundation of the scene.

Somehow, it’s become standard practice to include prize pools in almost every esports event, even when the competition is casual or filled with beginner-level players. In most other activities—whether it’s sports, music, robotics, or debate—participants don’t expect to get paid. In fact, they usually pay to participate.

And yet in esports, the expectation is often the opposite: show up, and potentially get paid, no matter the skill level.

“We Need a Prize Pool to Attract Players”

This is probably the most common reason organizers give. And yes, offering a cash incentive might help boost registration in the short term—but it’s not a long-term solution.

If an event only draws people because there’s money involved, it may be worth revisiting the overall value of the experience. Are people connecting? Learning? Having fun? Those are the kinds of things that keep people coming back—even without a cash prize.

Great events don’t need to rely solely on prize money if they’re offering something meaningful.

A Look at Traditional Sports and Activities

When you think about youth sports, most athletes play because they love the game and want to get better. Same goes for kids in band, chess club, or robotics competitions. Payment or prize money isn’t usually part of the equation until you get to a much higher level—or college, where scholarships may come into play.

That model works because it encourages growth, participation, and community. Esports can follow that same path. There’s no need to rush into payouts before players have even had time to develop their skills or form a real connection with the activity.

Paying People What It’s Worth—Not Just What They Want

There’s nothing wrong with wanting to make money doing something you love. That’s the dream for a lot of people. But in any industry, compensation has to match value. If someone is just getting started or participating in a casual weekend tournament, a cash reward shouldn’t be the expectation.

When we scale back prize pools at the amateur level, a couple of good things happen:

  1. Players stay grounded. It becomes less about ego and more about growth.
  2. Events become more sustainable. Organizers can focus on building programs and experiences that last, instead of constantly trying to stretch a budget around prize payouts.

Final Thoughts

Esports is still evolving, and there’s a lot of room for improvement—especially at the grassroots level. Reframing the way we think about prize pools is just one part of that. If we focus on creating valuable experiences, building real communities, and supporting skill development, players will come for the right reasons.

And when the competition level does reach that next tier? That’s when prizes and payouts make sense—because they’ve been earned. Not expected.

Let’s grow esports the right way—from the ground up.

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