World Chess (CHSS) , a London-based chess gaming and entertainment company, commented on the recent report published in Kommersant of former World Chess Champion Vladimir Kramnik's EU complaint against CHSS competitor Chess.com. In the report, Kramnik alleges a range of issues, including abuse of a dominant position in the online chess market, lack of transparency in anti-cheating practices, and retaliation against players who publicly raise concerns.
For context, World Chess is the official partner of the International Chess Federation (FIDE), the world's governing chess body and member of the International Olympic Committee. World Chess is the exclusive operator of chessarena.com, FIDE's official gaming platform where paid members from 160 countries can earn an online rating recognised by FIDE. Chess.com, which is the target of Mr. Kramnik's EU complaint, is one of the most popular online chess platforms and a primary competitor of World Chess' chessarena.com.
The Kommersant report elaborates that Kramnik's filing features over 60 pages and 14 formal allegations, and has been received by relevant EU regulatory bodies. It also notes that further action may be considered in the US. World Chess expressed support for the concerns raised, specifically on transparency, accountability, and procedural fairness.
World Chess noted that those principles were built into its own chessarena.com. Specifically, the platform features official FIDE-recognised games with externally auditable rules, transparent anti-cheating protocols applied through a documented process, and verified identities using government ID and federation credentials.
"As chess continues to grow as a professional and digital-first global sport, World Chess remains committed to building trust across all stakeholders - players, fans, regulators, and institutions." World Chess said in a statement.
Ilya Merenzon, CEO of World Chess, added: "Mr. Kramnik's decision to elevate these issues to a regulatory level is significant. Regardless of the outcome, it reflects a broader shift toward formal oversight in digital chess, which we view as a positive step."
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World Chess has commented on the recent commotion in the world of online chess, triggered by World Chess Champion Vladimir Kramnik's EU complaint against Chess.com. The former is the world's largest online chess platform, although World Chess' own chessarena.com (the official FIDE platform) has been rapidly gaining market share.
As the world's dominant online chess platform, Chess.com has faced increased concerns around transparency, accountability and fair play. As those get addressed and sorted, other dominant players in the space - such as World Chess' chessarena.com - will naturally benefit as some Chess.com players look to switch. World Chess' main advantage in the space is that it has an exclusive license to run chessarena.com for FIDE, the world's governing chess body and member of the International Olympic Committee.
Chessarena.com has already been gaining market share amid a platform redesign and introduction of novel tournaments. For FY24, World Chess reported annual revenues of €2.43m. Net loss before tax narrowed significantly to €3.84m from €4.67m in FY23, while gross profit jumped to €889k from €179k last year. The fivefold increase in gross profit was attributed to CHSS' shift toward higher-margin digital offerings and increased operational efficiency.
The improved profitability lays a solid foundation for sustained growth and long-term financial stability, as CHSS solidifies its position as the go-to platform for elite online chess tournaments. Chessarena.com underwent a full redesign in May 2024 and is set to host the upcoming World Chess Tour, modelled after the ATP Tour in tennis. WTC will feature chess' biggest stars in a series of tournaments with a c. US$1m prize pool. With an expected 60 global broadcast partners, WCT should offer significant exposure through live events, online platforms, and televised matches.
Looking ahead, a €6m loan secured in September 2024 and other investments in FY24 and FY25 should keep CHSS funded in the near term to continue product development and platform expansion. The global chess market was valued at US$2.5bn in 2023 and is projected to grow to $3.8bn by 2032.
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