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The Esports Advocate
Affected staff retained legal counsel and issued an ultimatum to the company. They threatened a class-action lawsuit in California if three months of back pay were not settled.
The Dubai-based esports organization Galaxy Racer abruptly shuttered its North American operations in November 2023, resulting in the termination of its regional staff. This closure followed a period of significant financial instability, characterized by months of unpaid wages for full-time employees. Prior to the shutdown, affected staff had retained legal counsel and issued an ultimatum to the company, threatening a class-action lawsuit in California if three months of back pay were not settled.
The organization’s management initially ceased communication with its North American team for several weeks before eventually initiating wire transfers to address outstanding debts. While the exact amounts remained unconfirmed at the time of the announcement, the company publicly committed to fulfilling its financial obligations to winners of the Her Galaxy $100,000 Apex Legends Open. Galaxy Racer attributed the closure to a strategic pivot, stating that it intends to restructure its U.S. operations to focus exclusively on influencer and content creator programs under new leadership, while temporarily pausing all other esports activities.
This development marks a continuation of reported financial difficulties within the organization, which had previously faced allegations of failing to pay influencers and partner entities. The situation highlights broader volatility within the North American esports sector, specifically regarding the sustainability of regional expansions for international organizations. The reporting relies on internal sources, employee social media disclosures, and official statements provided by the company to industry media.
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