Sports memorabilia company Panini America has entered its first collaboration with an Esports franchise, compLexity Gaming.

Panini America, which is part of the Italian-based The Panini Group, creates a variety of collectibles, including trading cards, stickers, books, comics, and magazines. As part of the agreement, Panini will make traditional trading cards and posters featuring compLexity players.

Photo Credit: Esports Insider

The products will be available at compLexity’s headquarters at The Star in Frisco (which is also the practice facility for the Dallas Cowboys – compLexity is co-owned by Cowboy’s owner Jerry Jones and real estate investor John Goff). compLexity’s esports athletes and streamers will also host fan meet-and-greets where they sign the products designed by Panini.

The deal also includes Panini’s first foray into streaming. Panini and compLexity Gaming will collaborate on a Twitch channel, which launched Jan. 17. The channel, managed by compLexity, will feature that organization’s athletes and streamers playing games with traditional sports athletes who have an existing affiliation with Panini.

“We’ve been working here internally to figure out how we fit into the esports realm, and we’ve always felt we need to do more than just produce trading cards with teams,” Jason Howarth, Panini Vice President of Marketing, said to The Esports Observer. “There has to be some engagement component, and there has to be some compelling reason for us to step in, and this 360-degree approach to the relationship is what makes it compelling.”

The Twitch channel will also feature giveaways of Panini products and unique content, created by compLexity and Panini, that specifically promotes Panini’s NFL and NBA products. This content will also be shared on YouTube and across social media.

“By teaming up with one of the most reputable traditional sports brands, compLexity Gaming and Panini are furthering the intersection of esports and traditional sports through new product innovation and content,” Daniel Herz, Chief Revenue Officer and Vice President of compLexity, said in a press release. “With the traditional sports world’s growing interest in video games and Panini’s roster of talented professional athletes and teams, this partnership creates more opportunity for integration across gaming, football, basketball, and more.

“We’ve seen on Twitch what that cross-blend has done, and for us to be involved with that is extremely exciting on our side.”

Currently, compLexity Gaming has competitive teams in nine esports: Fortnite, Counter-Strike: Global Offensive, Madden, Rocket League, Defense of the Ancients 2, Clash Royale, Artifact, Magic the Gathering Arena, and Hearthstone.

Photo Credit: compLexity Gaming

The partnership between compLexity and Panini is noteworthy. Panini has several established relationships in the traditional sports world that the company can leverage to introduce any uninitiated fans to esports. On the flip side, compLexity is very comfortable with Twitch, the largest platform for streaming esports and gaming content. Having an immediate and effective presence on Twitch should be a considerable benefit to Panini. It’s notable that the reasons Panini entered into this sponsorship was equal parts compLexity’s name recognition and the organization’s expertise in areas that are unfamiliar to Panini.

“The esports audience shares similar demographics and interests as traditional trading card fans, so being able to engage those fans in new ways and where they are spending their time is important,” Jason Howarth, Vice President of Marketing for Panini America, said in a press release.

“It’s also a way to engage a younger audience and introduce them to our Panini trading card products. Partnering with compLexity, an organization that shares a similar vision to creating compelling content, reaching new audiences, and leveraging the crossover appeal of gaming with traditional athletes is why we are really excited about this partnership.”

compLexity Gaming has shown that it is adept at acquiring non-endemic sponsors that will enable them to promote their teams creatively. In November 2018, the group signed an agreement with WinStar World Casino, the first casino to become an official sponsor of a U.S. esports organization.

“WinStar is a preeminent gaming and entertainment venue, and we are excited for them to become our exclusive casino partner,” Jason Lake, Founder and CEO of compLexity Gaming, said in a press release. “This partnership signals a significant shift in the esports sphere toward making competitive gaming entertainment even more mainstream.”

The deal gave compLexity players full access to the WinStar’s hotel, its two golf courses, and the concert venue. In return, the compLexity athletes will appear on site twice a year to host meet-and-greets and “boot camps” for players to interact with fans. Now, thanks to the deal with Panini, it is clear what promotional items will be signed and passed out at these events. There are also plans for the two organizations to collaborate and bring a gaming event to WinStar.

Photo Credit: All Star USA Gambling

“The high-energy and competitive nature of esports aligns with our focus on creating unique, high-energy gaming and entertainment experiences for our patrons,” Jack Parkinson, WinStar World Casino General Manager, said in the press release. “compLexity’s forward-thinking and innovative approach to one of the fastest growing genres of mainstream entertainment is a natural fit as we look toward remaining at the forefront of the gaming industry.”

WinStar is located in Thackerville, Oklahoma, not far from the border between Texas and Oklahoma (which puts it about two hours from compLexity’s headquarters). This partnership could be especially exciting – and ahead of the curve – if sports betting becomes legal in Oklahoma. According to research by NJGames.org, esports is the fastest growing sector in the sports betting market. In 2016, $5.5 billion was wagered on esports. By 2020, that number is expected to climb to $12.9 billion – a 134 percent increase.

Of course, should sports betting become legal in Oklahoma that doesn’t necessarily mean that esports betting automatically becomes legal. When Massachusetts recently announced a bill to legalize sports betting, several sports were excluded including college, amateur sports, and esports competitions.

A similar thing occurred when New Jersey introduced its sports betting bill in 2018. That legislation initially included language that excluded betting on “electronic sports and competitive video games.” There was some pushback against the exclusion, so legislators relented to allowed esports betting if all players in the competition were over older than 17 – certainly not a given for many esports matches.

These objections, in part, stem from concerns that esports is much harder to regulate than traditional sports (which, itself, has had its fair share of betting woes), especially since there is no single esports governing body.

Still, the value of the WinStar/compLexity deal does not hinge on whether esports betting becomes legal in Oklahoma – that would just be a bonus. The actual value will be how well compLexity is able to combine its strengths with the strengths of a non-endemic partner.

This is also true of the relationship with Panini. It’s hard to say whether the trading cards and posters created by Panini will generate much enthusiasm from digitally native esports fans. However, this physical media is actually a secondary concern. compLexity should be able to leverage Panini’s traditional sports connections to introduce new fans to esports while Panini should be able to find a younger audience by creating a successful Twitch channel with compLexity’s expertise.

As esports continues to grow in popularity, sponsorships will be judged in ways that extend beyond their immediate value in dollars and cents. If you are interested in sponsoring an esports organization and would like some creative suggestions, we can help. Give The Trade Group a call at 800-343-2005.

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