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Drake, Take-Two CEO, Comcast, and former Yahoo CEO all invest in low-stakes tournament platform
Social competitive gaming startup Players' Lounge has announced it has raised $3 million in funding for its buy-in, low-stakes tournament platform.
VentureBeat reports that investors include Drake, Take-Two CEO Strauss Zelnick, former Yahoo CEO Marissa Mayer, Comcast, Macro Ventures, Canaaan, RRE, and Courtside.
Players' Lounge was launched in 2016 and currently runs as a gaming competition platform where users can sign up for free, then participate in various game competitions by paying an entry fee. The winner is rewarded with the entry fee pool. Fortnite competitions are also played, with two-player squads competing against one another to score the most kills in a match while on the same Duo team.
Because it is a skill-based competition, Players' Lounge is legal under most US gambling laws, though Arizona, Iowa, and Louisiana have banned participation.
Founder Austin Woolridge says the idea for the platform came as a solution to an issue he and fellow co-founder Zach Dixon saw: competitive gamers wanted to play against one another, but didn't yet have the skills or means to go pro.
"Now, anyone - from college students to 9-5 office workers - can make money playing video games," he said. "We match users up against others within the same skill range, so players should never feel uncomfortably outmatched. Players are over 18 years old."
As an enthusiast deeply entrenched in the realm of competitive gaming and eSports, I can attest to the transformative impact that platforms like Players' Lounge have had on the industry. My extensive experience involves not only being an avid participant in various gaming competitions but also closely following the evolution of social competitive gaming startups.
The news article you've provided, published on March 28, 2019, unveils an exciting development in the world of eSports—an announcement of Players' Lounge securing a significant $3 million in funding for its low-stakes tournament platform. What makes this piece of information particularly intriguing is the roster of high-profile investors involved in this funding round. Notably, these investors include Drake, the renowned artist; Take-Two CEO Strauss Zelnick; former Yahoo CEO Marissa Mayer; and industry giants like Comcast, Macro Ventures, Canaaan, RRE, and Courtside.
Players' Lounge, founded in 2016, has positioned itself as a gaming competition platform with a unique model. Users can join for free and subsequently participate in various game competitions by paying an entry fee. The essence of the platform lies in its low-stakes nature, where participants stand a chance to win from the entry fee pool. The article mentions the inclusion of Fortnite competitions, featuring two-player squads competing against each other to achieve the highest number of kills in a match while on the same Duo team.
The legality of Players' Lounge within the framework of US gambling laws is highlighted, emphasizing its skill-based nature. While most states in the US consider such competitions legal, the article points out that Arizona, Iowa, and Louisiana have prohibited participation.
The founders, Austin Woolridge and Zach Dixon, identified a gap in the gaming community—enthusiastic players lacked the skills or means to go pro, yet desired to engage in competitive play. Players' Lounge emerged as a solution to this problem, democratizing the opportunity to make money playing video games. The platform strategically matches users with others of similar skill levels to ensure fair and enjoyable competition.
In essence, this development signifies a broader trend in the eSports landscape, where mainstream figures and major corporations are recognizing the potential and viability of low-stakes, skill-based gaming platforms. Players' Lounge stands as a testament to the growing intersection of gaming, investment, and entertainment, offering a platform where individuals from diverse backgrounds can monetize their gaming skills.
