The United States tightening the grip on eSports immigration threatens to have a serious impact on the burgeoning sector. The Senate is in the process of legislating a new bill, which if approved could extend the wait times for eSports athletes pursuing a green card to seven years.
eSports Immigration Changes
Currently, foreign eSports athletes looking to live and work in the U.S can apply for either EB-1A Visa or Extraordinary Ability Greencard. The Extraordinary Ability Greencard is common with eSports athletes who possess extraordinary talent in developing eSports games or playing the actual games.
The green card is also popular in part because it grants foreigners grants for in-state tuition at some of the best universities. Some foreigners, especially from South Korea, have also used the opportunity to defer military service, which is necessary in their home country.
While the EB-1 green cards take, up to 24 months for processing a new act could extend the waiting time to seven years. Such a move could take a toll on the industry and affect the country’s ability to attract and hold on to top talent.
The global esports market is growing at an impressive rate, having generated over $800 million in revenues in 2018. The figure look set to hit the $1 billion mark for the first time in 2019 according to data by Newzoo. The U.S is one of the markets that is fuelling the growth given the country’s strong gaming culture.
The new bill extending the period in which eSports athletes have to wait could significantly affect the U.S ability to take the likes of China on eSports talent and development. The new act will also be of a disadvantage to athletes that do not come from China or India.
For that matter, the bill could take a toll on eSports leagues and popular games such as Overwatch dominated by South Korean eSports professionals. However, the aggrieved eSports athletes can heave a sigh of relief, as the new bill faces an uphill task to pass on the floor of the U.S Senate.
Canada eSports Investment Opportunities
Amidst the eSports immigration changes in the U.S, Canadian eSports sector continues to flourish. An influx in the number of companies betting on the emerging gaming spectacle is already giving rise to investment opportunities.
With a market cap of about C$8 million, YDX Innovation (TSXV:YDX) is one of the companies that remains well-positioned to generate significant shareholders returns in the Canadian eSports sector. The company boasts of over 18 years in business and has in the recent past, increased its focus on eSports, virtual reality as well as Augmented Reality. The company is in the process of organizing a number of eSports events across the U.S.
Axion Ventures (TSXV:AXV) is a worthy mention in Canadian eSports sector as one of the big players. With a market cap of more than $200 million. The company is increasingly coming up with new eSports games to take advantage of growing demand. The retention rate of its games is much higher than that of the overall industry, which positions it to generate significant value going forward.
Enthusiast Gaming (TSXV:EGLX) gaming is also making a name for itself on eSports thanks to a portfolio of 80 video gaming websites that attract over 150 million monthly visitors. As it stands, the company remains well-positioned to generate significant ad revenue through advertising on its eSports platforms.
