Motorsport Games

Motorsport Games Inc. is an American video game developer, publisher and esports event organizer based in Miramar, Florida[2]. Motorsport Games is owned by Driven Lifestyle Group LLC.

History

Motorsport Games was founded in 2018 and on August 14 the studio acquired 53.5% equity interest in 704Games, at the time the current rights holder to the NASCAR video game series.[3] As a result, Motorsport Games became the official developer and publisher of the NASCAR video game racing franchise.[4][5] In the same month, Motorsport Games collaborated with Automobile Club de l'Ouest (ACO) to launch the Le Mans esports series competition.[6]

Controversies

On March 28, 2022, U.S. federal judge Stephanos Bibas accepted a motion by investors Innovate 2 Corp., Continental General Insurance Company, and Leo Capital Holdings LLC to sue Motorsport Games in the United States District Court for the District of Delaware. In the filing, the investors accuse four Motorsport Games executives of securities fraud, claiming that the executives provided misleading statistics to the remaining investors of 704Games about the company's financial situation and the sales performance of its main product, the NASCAR Heat franchise. The investors allege that the information they received allowed Motorsport Games to buy out the remaining shares of 704Games at a significant discount to what Motorsport Games offered at their IPO, at which point the NASCAR Heat series accounted for a majority of Motorsport Games' total net revenue, estimated at 99%.[53] However on February 26, 2025, Motorsport Games won the legal argument against Innovate 2 on all counts, dismissed by Judge Bibas stating that "Innovate has no evidence that any representations at that meeting were false when made.” [54]

The same year in November, Motorsport Games received a notice of non-compliance with Nasdaq listing rules after its board of directors resigned over funding disputes. The company reported losses of $7.5 million against revenue of $1.2 million in the third quarter of 2022.[55]

In January 2023, Motorsport Games organised the fourth annual Le Mans virtual 24-hour endurance race, a parallel to the real-life 24 Hours of Le Mans event. The race took place in Motorsport Games' sim racing video game rFactor 2 and featured notable motorsport drivers, such as Formula One World Champion Max Verstappen and former Formula One driver Romain Grosjean. The event was plagued with server issues and disconnections, which lead a lot of backlash from participants. Verstappen described the event as a "clown show",[56] and online content creator and participant Jimmy Broadbent stated that this would ultimately "damage sim racing" as a medium.[57] Several days after the event, an anonymous employee threatened to publicly leak the source code for NASCAR Heat 5, NASCAR 21: Ignition, KartKraft and the unreleased IndyCar game unless unpaid wage payments were made.[58]

type	Public
traded as	nasdaq: MSGM
industry	Video games
founded	2018, in Miami, Florida, U.S.
area served	Worldwide
revenue	US$8,687,462 (2024)‡R1R‡
net income	US$-3,048,071
net income year	2024
assets	US$6,268,221
assets year	2024
num employees	39
num employees year	As of December 31, 2024
parent	Driven Lifestyle Group LLC
website	Motorsportgames.com

History

2020 esports events

IPO and 2021 acquisitions

Controversies

Games

Cancelled games

External links

References