As the global esports industry is projected to generate more than $2 billion in revenue this year, Nepal is making its mark on the biggest stage in competitive gaming.

The Esports World Cup, featuring a record $75 million prize pool, is underway in Paris after being relocated from Riyadh because of the escalating conflict in West Asia.

Nepal is represented by DRS Gaming in Free Fire and Horaa Esports Nepal in PUBG Mobile, underscoring the country's growing presence in one of the world's fastest-expanding sports industries.

The tournament, which began last week while the FIFA World Cup is also capturing global attention across the United States, Canada and Mexico, has brought together more than 2,000 players, 200 clubs and competitors from over 100 countries. Running for seven weeks until August 23, it features 25 competitions across 24 game titles and offers the largest prize pool in esports history.

Having secured a qualification through regional qualifiers, DRS Gaming has become the first Nepali team to compete in the Free Fire event at the Esports World Cup. The team is competing against 24 of the world’s strongest Free Fire squads and has already impressed by finishing among the top ten in the opening rounds. It currently sits seventh in the standings.

According to Nepali Free Fire analyst Bishal Sapkota, the players have shown remarkable composure despite facing teams they had long admired.

“They are competing confidently against some of the biggest names in the world instead of being overwhelmed by the occasion,” Sapkota said. “Since this is Nepal’s first appearance on such a global stage, reaching the finals and finishing on the podium remains the target. We are optimistic about securing our place in the survival stage.”

Nepal’s Horaa Esports is one of only two South Asian teams to qualify for the PUBG Mobile event, alongside Pakistan’s 4Thrives Esports. The team will leave for Paris on August 3 with players Subash Rana (No Fear), Akash Sotang Rai (Sky), Sheetal Rai (Sleepy), Suprim Adhikari (Jiggle), Prabesh Gurung (Hait Dami) and Ujen Lama (Ninja Horaa). Dinesh Roka Magar is the team’s coach.

Last year, Horaa finished ninth at the tournament in Saudi Arabia, winning $127,500 in prize money.

Founder Sanjan Gautam, better known as CR7 Horaa, said qualifying from South Asia alone was a significant achievement.

“This year, our goal is to win. If not, we are determined to finish on the podium,” Gautam said. “We practise every day against the world’s top teams, so we are not intimidated.”

He criticised the government’s approach to esports, saying authorities deduct 25 percent tax from international prize earnings while providing virtually no support for the sector.

The tournament, organised by the Esports Foundation, runs until August 23. Football icon Cristiano Ronaldo and chess legend Magnus Carlsen are serving as global ambassadors.

Foundation Chief Executive Officer Ralf Reichert said hosting this year’s edition in Paris marks the beginning of the tournament’s expansion beyond Saudi Arabia.

The competition includes some of the world’s biggest titles, including League of Legends, Counter-Strike 2, Dota 2, Valorant, Mobile Legends: Bang Bang, PUBG Mobile, Free Fire and Chess. Several events have already concluded, with leading global esports organisations establishing early leads in the club championship standings.

The BBC has reported that the tournament reflects the rapid commercial growth of competitive gaming, with global esports revenues expected to exceed $2 billion this year.

Him Bikram KC, senior vice-president of the Esports Association Nepal (ESAN), said the qualification of Nepali teams demonstrates the country’s growing credibility in international esports.

“It proves that Nepali players can compete at the highest level and that the country has enormous potential in esports,” he said.

He added that DRS Gaming’s previous international success, including winning prize money worth millions of rupees, had established the commercial value of esports and encouraged greater government interest.

“The achievements of these teams have increased pressure and motivation to build a proper regulatory system for esports in Nepal,” KC said.

Public interest in esports surged after DRS Gaming finished runner-up at the 2023 PUBG Mobile Global Championship Grand Finals in Jakarta, earning more than Rs20 million in prize money. The success prompted the government to signal support for the industry by establishing regulatory bodies, including ESAN and Nepal Esports Association (NESA). Kathmandu Metropolitan City also allocated Rs10 million in its 2022-23 budget to promote esports.

The initiative, however, became politically controversial. Critics accused then Kathmandu mayor, now Prime Minister Balendra Shah, of earmarking the funding to benefit DRS Gaming because of his friendship with Victor Poudel, who was associated with the organisation.

Although Shah has rarely spoken publicly about esports in recent years, people close to him say he remains interested in mobile gaming and supports creating a legal framework for the industry.

Despite international success, stakeholders say Nepal’s domestic esports ecosystem is close to stagnation.

“There are virtually no domestic tournaments and no meaningful government support,” Gautam said. “If agencies like ESAN organised tournaments every two or three months with prize pools of Rs300,000 to Rs400,000, it would help organisations sustain teams and pay players.”

Without regular competitions and financial incentives, he warned, many players could leave the game altogether, threatening the future of Nepal’s esports industry.

Pradip Adhikari of Ghanta Gaming echoed those concerns.

“Only a handful of teams continue to perform internationally, but the domestic esports scene has been steadily declining,” he said. “Since the new government took office, the sector has received even less attention. Compared with previous years, there are far fewer events, and those that do take place are small and largely unnoticed.”

He said school and college competitions have become the only source of activity keeping Nepal’s esports community alive as government agencies remain largely absent.