The District’s sports and entertainment authority has made it very clear that its new priority is turning the city into the “Capital of Esports.” The latest venture for Events DC in promoting competitive video gaming is a pop-up bar called “Levels Unlocked: House of D.C. Heroes,” in partnership with Drink Company, the group behind the string of pop-up bars populating 7th St. NW.

Events DC has confirmed that it paid Drink Company for its partnership in creating “House of D.C. Heroes,” after more than a week of inquiry from DCist, though officials wouldn’t detail the cost.

“This SXSW and D.C. partnership is intended to broaden local and global awareness of Events DC’s strategic commitments within the esports space, including team sponsorships and infrastructure with the ultimate goal of attracting innovative leaders, brands, and events to D.C. while driving economic activity,” said Events DC CEO Greg O’Dell in an emailed statement. “This is a strategic partnership that will play a role in supporting and enhancing the local esports community in the District—as well as our city’s creative and hospitality community.”

Events DC, which is funded through the city’s hotel and restaurant tax and revenue from several city properties, already took a pared-down version “House of D.C. Heroes” to South by Southwest last week. That marked the authority’s third consecutive year at the arts and technology festival to promote the city’s esports investments—which include sponsoring teams and events, establishing an “Overwatch” training facility, and making competitive gaming events a linchpin for the newly opened Entertainment and Sports Arena. Events DC’s board chair, Max Brown, is also a lobbyist for the video game industry.

For the uninitiated, “esports” refers to the fast-growing world of competitive video gaming, in which audiences watch professional players face off against one another in tournaments either over the internet or in person. While older generations may scoff, esports will generate a total of $1.1 billion in global revenues this year, according to analysis from market research firm Newzoo, and it has a strikingly young fan base. New teams might pay tens of millions of dollars to enter pre-existing leagues. Events DC wants to make sure the District gets a slice of that gamer pie.

“Esports, generally, as a market, is growing exponentially, faster than any of the traditional sports,” O’Dell told WAMU this fall. “And oddly, some of those traditional sports have seen some decline in their attendance. For that reason, we as a city, and Events DC specifically, have been very bullish on making the investment in this ecosystem to support growing esports in Washington.”

The argument in favor of investing tax dollars in esports resembles the line of reasoning putting public money towards athletics: creating opportunities for jobs and increasing tourism. (This notion is not without its detractors, who question whether investments in sports pay off for jurisdictions.)  Events DC has already spent millions towards promoting esports, though the authority, which had an operating budget of more than $160 million in fiscal year 2018, does not release its itemized expenditures.

The organization controls Nationals Park, RFK Stadium, the convention center, and the non-military parts of the D.C. Armory. All of its budget is dedicated to advancing the District “as a key sports, entertainment, and special events destination.”

Here’s what we do know about the “House of D.C. Heroes” pop-up bar and its iteration on 7th Street this summer (exact dates in July and August haven’t been announced): It will have “reimagined scenes from games tied to D.C. esports,” including “Overwatch,” “Smash Bros. Ultimate,” and “NBA2K”—all of which have D.C.-based teams.

Derek Brown, the president of Drink Company, tells DCist the pop up is a “great opportunity for people who are curious about esports. An easy lift is for people to get a drink and check it out … As a Washingtonian, I love the idea of D.C. becoming an esports hub. It’s obviously something growing in popularity.”

Drink Company’s storefronts by the Shaw/Howard Metro have become known for their ever-changing pop-up themes with large-scale installations, which have included annual traditions like the Christmas Bar and the Cherry Blossom Pop Up, and one-offs inspired by Game of Thrones, Stranger Things, and, fleetingly, Rick and Morty. At South by Southwest, the pop-up bar included game-themed cocktails like “I Call Yoshi” and “Super Dragon Bros,” and visitors can expect an expanded selection of drinks this summer.

Brown says this is the first time Drink Company is officially working with Events DC, and he deferred any questions about the specifics of the partnership to the sports authority. “This came together in a perfect storm,” he says. We were looking for something to do this summer, and it’s a topic that’s really fascinating to us. Some of the people who work with us are gamers.”

This story has been updated to reflect that Derek Brown is the president, not the CEO, of Drink Company.