Centralized vs. open tournaments in esports: Key differences

Centralized and open tournaments are the main types of tournaments in esports. For example, the League of Legends World Championship and Call of Duty League are centralized events created by the publishers. Meanwhile, tournaments like the Evolution Championship Series and Fortnite Champion Series are open and allow anyone to apply and test their skills.

With esports already a multi-billion dollar industry, thanks to sponsorships and broadcasting rights, new and existing tournaments are finding ways to appeal to new viewers and players almost every year. 

However, with the business constantly changing, what is the preferred tournament format in esports in 2025 and beyond? We’ve created a guide to help lay out what centralized and open tournaments mean and what their respective future trends could be in the coming years.

What are centralized tournaments in esports?
Centralized tournaments in esports are structured events arranged by a single governing body, making sure that rules and schedules are followed at all times. 

Those who compete or attend these tournaments will likely see consistent branding by the event sponsors and a standardized qualification structure for competing players.

Examples of centralized tournaments usually consist of the most popular esports games, such as:

What are open tournaments in esports?
Open tournaments in esports allow any player or team to enter, no matter how well-known. This means that rising talent have a chance of competing at a high level and potentially win the tournament. 

Open tournaments are a common type in esports due to this reason, as organizers and sponsorships try to ensure that new players have a fair chance of competing, and there’s no risk of favoritism.

Examples of open tournaments also include some of the most popular esports games, such as:

Centralized vs. open tournaments in esports can differ significantly, but in several cases, both formats suit certain teams. Let’s explore the major distinctive features

So, how do centralized esports tournaments work vs. open tournaments exactly?

Open tournaments allow a bunch of organizers to host events with fewer restrictions and a less formal format that can be easier for less experienced players and teams. 

When it comes to centralized tournaments, these are managed by a single organizer, such as Riot Games with its League of Legends World Championship, making sure that strict guidelines are followed for every team taking part. 

However, it’s important to note that some tournaments can fall into both categories. For example, Dota 2: The International, hosted by Valve, invites teams but has qualification matches through open circuits, meaning that this tournament falls into a hybrid of sorts.

Accessibility can be a big differentiator for the two types of tournament formats in esports. 

For example, open tournaments allow anyone to compete via qualifying matches, lowering the barrier-to-entry to almost nothing. 

However, centralized tournaments usually require invitations or high entry fees, which can be limiting to certain teams.

Open tournaments usually rely on prize pools and independent sponsorships, which can make their financial models more unpredictable. 

Conversely, centralized tournaments can secure longer-term funding through broadcasting rights, sponsorships, and franchise fees.

First, let’s clarify the difference between centralized, open, and decentralized tournament concepts. 

Are open tournaments and decentralized tournaments in esports the same?
No. Open tournaments are open to anyone, while “decentralized tournaments” use blockchain technology to store game data.

Can centralized esports tournaments be decentralized?
Yes, centralized esports tournaments can also be decentralized, using blockchain and smart contracts to create more transparent, fair, and community-driven platforms. 

With decentralized esports tournaments, games can run on blockchain, storing game data like skins, weapons, and more via players’ crypto wallets. However, the uncertainty of crypto and Web3 in general could make the decentralized esports tournament ecosystem more unpredictable and unreliable for some, leading them to stick with established events that games like Valorant and Overwatch offer.

Both centralized and open tournaments offer different tournament styles in esports for fans and players alike. 

For instance, open events can offer unpredictable matchups with players and teams who may not have taken part before, which could give a lot of excitement to viewers, potentially increasing viewership. 

For centralized tournaments, whilst many offer high-quality events at well-known stadiums worldwide, their consistent structure can be at risk of being repetitive to viewers over time.

Although centralized tournaments can obtain long-term investment via sponsorships and exclusive broadcasting rights, viewers may become bored by seeing events being hosted in the same way, year after year. 

This can change if new games or updates to existing games give players new ways of approaching certain matches, but there is a risk of stagnation over time. 

For open tournaments, the playing field can change more frequently due to new talent approaching games in different ways. Whether that’s via VR gaming or mobile esports, it could attract new viewers and players alike. These play types could potentially sustain esports and titles in the long run.

Both centralized and open tournaments are moving toward combinations of both models to try to appeal to new viewers and players, where anyone can compete in structured, established leagues. 

With new consoles such as the Nintendo Switch 2 releasing in June, this can mean new games could be entering tournaments.

As esports as a whole continues growing, publishers like Valve and Riot Games will likely attempt to expand their own tournaments, establishing new leagues and events. 

In turn, communities who are passionate about games like Counter-Strike 2 and Valorant could look at their own independent tournaments adjacent to publishers. 

This way, new growth could be given to the esports industry as a whole and sustain existing tournaments as well.

Although community-driven tournaments are mostly exclusive to open tournaments, there’s a growing discussion that publishers will eventually be involved in these to raise awareness of their events and games for new players as a way to minimize complacency and potential boredom for viewers. 

This means that future trends could see both publishers and communities working together for new leagues and tournaments that could drive long-term investment for both parties.

Centralized and open tournaments in esports are constantly changing, mainly due to the ever-growing needs of its players and viewers who take part in many events hosted worldwide across the year.

However, the potential viewership could reach billions, and both centralized and open tournaments are ready to adapt to new regulations and trends.