Chicago Not So Bullish on Esports Projects in 2023

The landscape for large-scale esports infrastructure in Chicago faced significant setbacks in early 2023, as multiple high-profile development projects were either rejected or abandoned. The city’s cooling interest in these ventures reflects a broader shift in the gaming industry, where the initial enthusiasm for dedicated esports facilities has been tempered by economic realities and changing market conditions.

A primary example of this trend is the rejection of a $104 million proposal to redevelop the former Chicago Board Options Exchange building. The project, which involved LeagueSpot, Phoenix Sports Partners, and Urban Resolve, sought to transform the 300,000-square-foot site into a multi-use facility featuring an esports competition space, student housing, and wellness centers. City officials ultimately denied the proposal, citing its ineligibility for necessary tax increment financing subsidies, despite acknowledging the potential value of esports and student housing as downtown land uses.

Simultaneously, a separate $30 million virtual reality esports arena project at 2500-48 S. Wabash Avenue has been officially abandoned. The developer, Scott Greenberg, noted that the appetite for funding such ventures has diminished as the gaming industry landscape evolves and potential clients withdraw support. Consequently, the developer has pivoted away from the esports sector, repurposing the vision toward a dedicated LED soundstage for virtual film production. These developments underscore a growing caution among investors and municipal planners regarding the long-term financial viability of standalone esports venues in the current economic climate.