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Sitting on the stage in front of a monitor with lights beaming on their keyboards and fans hollering at their every move, gaming competitors mash away at their respective e-sports challenges.

That is the site on an almost nightly basis at the Las Vegas HyperX E-sports Arena, located inside the Luxor hotel and casino. HyperX is over 30,000 square feet and features a 50-foot LED video wall, food and beverages, and telescopic seating, which makes it a malleable space that can conform to any event the arena hosts.

鈥淥ur concept for pretty much everything we do is to make a modular space,鈥� explains Allied Esports representative Brian Fisher. 鈥淲e have telescopic seating that goes inside and out. You have seating that can come down, like bleacher seating, but can also be pushed back if you鈥檙e having a battle royale event where you need 100 PCs on the floor. For some of our main show-type events, we鈥檒l pull those back out so we can see audience numbers out there.鈥�

The e-sports industry is expected to reel in over $1 billion in global revenue this year 鈥� a 26.7 percent year-over-year growth rate, according to Newzoo. However, less than 10 percent of that revenue stems from merchandising and ticket sales. Because most people watch tournaments and individual gaming streams at home, the market for e-sports stadiums is relatively untapped. Developers like Allied see the potential in creating new, physical hubs for gaming.

鈥淚 think from what we鈥檝e seen, the reason we created the Vegas arena and the reason we created the Allied Sports property network is that people want to do this together in a physical location,鈥� Fisher said. 鈥淥bviously, with technology, people can do this online, but there鈥檚 no better feeling than being on stage with the lights on and competing with the best in the business鈥� you can鈥檛 get that feeling online.鈥�

These stadiums represent exciting opportunities for businesses, as well. With the number of national annual viewers expected to reach 43 million by 2022, according to eMarketer, tournaments offer optimal advertising spots for companies in myriad industries. In fact, eMarketer reports that sponsorship revenue is projected to reach roughly $457 million this year.

With an endless stream of popular games, businesses can choose which games, leagues, and teams they want to sponsor. The HyperX arena features weekly tournaments of the most popular games in e-sports, including Fortnite, NBA 2K, Apex Legends, and Mario Kart. Depending on their target demographic, marketers can choose which game best fits their advertising interests.

鈥淲e鈥檙e already seeing how popular competitive gaming is through the viewership numbers that some of these events are doing,鈥� Fisher said. 鈥淚t鈥檚 just a new mechanism for people to experience it, and that鈥檚 really what Allied does. We create these live experiences at our arenas around the globe and create great content from that and get that out to people who are interested.鈥�