In August 2018, Motorsport Games acquired 53.5% equity interest in 704Games, which was the current rights holder to the NASCAR video game series. In the same month, Motorsport Games collaborated with Automobile Club de l'Ouest (ACO) to launch the Le Mans esports series competition. In September 2019, Motorsport Games released the NASCAR Heat 4 game. In May 2020, 704Games replaced Monster Games as developer for NASCAR Heat 5, which was released on July 10. In 2021, the company acquired Studio 397 and its rFactor 2 sim racing platform. rFactor 2 was appointed as the official sim racing platform of the all-electric FIA Formula E championship in 2022. In August 2021, Peter Moore, former President of EA Sports and former CEO of Liverpool Football Club, joined the board of Motorsport Games.
In 2020, during the COVID-19 pandemic, Motorsport Games produced several official esports events for NASCAR, 24 Hours of Le Mans, FIA Formula E World Championship, FIA World Rallycross Championship, eNASCAR Heat Pro League and Virtual Race of Champions. Motorsport Games collaborated with Codemasters and Monster Energy to create the World RX Esports Invitational in April. In June of the same year, Motorsport Games, the Automobile Club de l'Ouest, and the FIA World Endurance Championship organized the 24 Hours of Le Mans Virtual race on the rFactor 2 gaming platform as a placeholder for the postponed 2020 24 Hours of Le Mans. This virtual race was watched by 14.2 million television viewers and received 8.6 million views.
Motorsport Games completed its Initial Public Offering (IPO) in January 2021, raising $69 million. This capital was used for acquiring the remaining equity interest of 704Games, and for acquiring KartKraft and Studio 397. In February, Motorsport Games entered an agreement to acquire game assets and code of the PC kart racing simulator, KartKraft, from Black Delta to form a new studio, Motorsport Games Australia, where KartKraft development would continue. This deal was completed in March. In March, Motorsport Games also entered an agreement with Luminis International to acquire Studio 397, the developer of rFactor 2, which was completed two months later. Motorsport Games combined the Unreal graphics engine and the rFactor physics technology for NASCAR 21: Ignition, released on October 26, 2021. The combination of the rFactor and Unreal engines was used for all upcoming titles produced by Motorsport Games, such as the British Touring Car Championship game. In the same month, Motorsport Games entered a license with IndyCar to develop both IndyCar video game series and events, with a planned launch date in 2023. Also in June, Motorsport Games announced the development of a dedicated video game title for the 24 Hours of Le Mans through a licensing deal with the Automobile Club de l'Ouest and the FIA World Endurance Championship, originally scheduled for release in 2023. The BTCC game was originally scheduled for release in 2022 but was delayed to 2024. In December 2022, Motorsport Games began an equity purchase agreement with NYC-based Alumni Capital for up to $2 million in company stock. By October 2023, Motorsport Games was no longer working on a future NASCAR title, as the license was transferred to iRacing. Motorsport Games laid off 40% of its workforce in November 2023. The same week, TOCA, the rights holder for the BTCC, ended its partnership with the company. Over a week later, IndyCar terminated its agreement with the company. On April 15, 2025, Motorsport Games secured a $2.5 million investment from Pimax. On April 27, 2026, Motorsport Games entered a share repurchase agreement with Driven Lifestyle Group LLC.
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. The investors accused four Motorsport Games executives of securities fraud, claiming misleading statistics were provided to remaining investors of 704Games about the company's financial situation and sales performance of the NASCAR Heat franchise. However, on February 26, 2025, Motorsport Games won the legal argument against Innovate 2 on all counts. In November 2022, 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. In January 2023, Motorsport Games organized the fourth annual Le Mans virtual 24-hour endurance race using rFactor 2. The event experienced server issues and disconnections, leading to backlash from participants like Max Verstappen and Jimmy Broadbent. Several days after the event, an anonymous employee threatened to leak source code for NASCAR Heat 5, NASCAR 21: Ignition, KartKraft, and the unreleased IndyCar game unless unpaid wages were made.
NASCAR Heat 4 (2019, published)
NASCAR Heat 5 and Next-Gen DLC (2020, 2023)
NASCAR 21: Ignition (2021)
rFactor 2 (2021)
KartKraft (2022)
NASCAR Rivals (2022)
Le Mans Ultimate (2024)
IndyCar (2023)
British Touring Car Championship (2023)
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