USA Esports Faces Backlash Over Saudi Sponsorship of Esports Nations Cup

The non-profit's plan to revive American esports has stalled amid controversy over its ties to Saudi Arabia's funding.

Mar. 28, 2026 at 6:09pm

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The newly formed USA Esports Alliance, a non-profit initiative designed to boost the American competitive esports scene, has faced immediate backlash after officially entering the Esports Nations Cup, an event sponsored by Saudi Arabia's Esports World Cup Foundation. Fans are outraged at the prospect of American esports being propped up by Saudi money, accusing the industry of 'sportswashing' the kingdom's human rights record. However, some argue the financial support may be a necessary evil given the current struggles of the US esports scene.

Why it matters

This controversy highlights the complex ethical dilemmas facing the esports industry as it seeks outside funding to sustain itself. The involvement of Saudi Arabia, which has been accused of using sports to improve its global image, raises questions about the values and integrity of the esports ecosystem. It also underscores the broader challenges facing American esports, which has fallen behind other regions in major competitive scenes like League of Legends and Super Smash Bros.

The details

USA Esports was founded with the ambitious goal of becoming the main governing body for American esports, with plans to integrate with the US Olympic and Paralympic Committee over the next 30 years. The organization quickly signed up major teams like Cloud9, Team Liquid, and 100 Thieves. However, its decision to participate in the Esports Nations Cup, which is funded by Saudi Arabia's Esports World Cup Foundation, has sparked outrage from fans who accuse the industry of 'sportswashing' the kingdom's human rights record. Some argue the Saudi money may be a necessary lifeline for the struggling US esports scene, which has fallen behind other regions in top competitive titles.

  • USA Esports was founded with a 30-year plan to integrate with the US Olympic and Paralympic Committee.
  • The Esports Nations Cup, sponsored by Saudi Arabia's Esports World Cup Foundation, is an upcoming tournament.

The players

USA Esports

A non-profit initiative designed to boost the American competitive esports scene and become the main governing body for US esports.

Esports World Cup Foundation

The Saudi Arabia-backed organization that is sponsoring the Esports Nations Cup tournament.

Jesse Bodoni

The president and CEO of USA Esports.

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What they’re saying

“This is a chance for the United States to influence the image of international esports.”

— Jesse Bodoni, President and CEO of USA Esports

“The values supported by the participants in such transactions are highly questionable.”

— Anonymous Critic

What’s next

The upcoming BLAST Austin Major 2025 tournament is seen as a chance for the United States to regain its former glory in Counter-Strike esports, potentially offsetting the controversy around the Esports Nations Cup.

The takeaway

The USA Esports controversy highlights the ethical dilemmas facing the esports industry as it seeks outside funding, as well as the broader challenges the US faces in remaining competitive on the global esports stage. The influx of Saudi money raises concerns about 'sportswashing', but some argue it may be a necessary evil to sustain the struggling American esports ecosystem.