Galaxy Racer Fails to Pay HER Galaxy $100K Apex Legends Open Winners

Key insights

5 takeaways

01
Dubai-based esports organization Galaxy Racer has failed to pay the winners of the $100,000 HER Galaxy Apex Legends Open, which concluded in June 2023.
02
Galaxy Racer missed its contractual 180-day payment deadline of December 22, 2023, and has informed winners that it currently has no timeline for when the prize money will be issued.
03
Tournament platform LeagueSpot is reportedly owed at least five figures by Galaxy Racer for services rendered during the facilitation of the event.
04
A wage claim (Case CM-960015) has been filed against Galaxy Racer with the State of California’s Department of Industrial Relations and is currently under investigation.
05
Following the shutdown of its North American offices in early December 2023, Galaxy Racer has faced ongoing scrutiny regarding its financial obligations, including previous allegations of owing millions to influencers and partners.

Summary

Dubai-based esports organization Galaxy Racer has failed to pay the winners of its HER Galaxy $100K Apex Legends Open tournament, which concluded in June 2023. Despite contractual obligations requiring payment within 180 days of the event's conclusion—a deadline that passed in late December—the company has informed participants that it has no set timeline for issuing the prize money. This failure to pay follows a broader pattern of financial instability within the organization, including the closure of its North American operations and previous difficulties in compensating its own staff.

Beyond the unpaid tournament winners, the organization faces additional financial scrutiny. Reports indicate that the Chicago-based tournament platform LeagueSpot is still owed at least five figures for services rendered during the event. Furthermore, the company is currently under investigation by the State of California’s Department of Industrial Relations regarding a wage claim filed in Long Beach. These developments highlight significant operational and fiscal challenges for Galaxy Racer, which has struggled to meet its financial commitments to both contractors and tournament participants throughout 2023.

The situation remains unresolved as of late December 2023, with no formal communication from the company regarding a specific payment schedule. While the organization has previously settled disputes with its former North American employees, the ongoing issues with tournament prize pools and vendor payments suggest persistent liquidity or administrative problems within the firm. The lack of transparency regarding these payouts continues to impact the professional reputation of the organization within the competitive gaming industry.