The Regulatory Landscape of eSports

The electronic gaming industry has grown dramatically in recent years as an alternative to traditional sports. In many countries, eSports is already recognized as an official sport, highlighting its dynamic nature. In 2020, despite the pandemic, the revenue of the eSports industry reached $947.1 million. Analysts predict that the global revenue of eSports will exceed $1 billion by 2021.

Many debates have arisen about the need to regulate eSports, as the industry’s rapid growth has outpaced the development of laws. The current regulations regarding eSports remain insufficient. Despite the lack of regulation and a formal governance structure, the industry has continued to operate effectively. However, concerns over illegal activities within eSports highlight the need for clear laws. These concerns include match-fixing, gambling, and doping.

Various organizations have tried to assume regulatory roles but have not been officially recognized as central authorities. This lack of a unified regulatory framework complicates the international regulation of eSports. Some argue that under the supervision of an official body, international regulation could help the industry grow more effectively in the future.

National Level

On a national level, some countries have begun regulating eSports. South Korea provides an example of effective regulation, having created a comprehensive system. The Korean Electronic Sports Association (KESPA) has regulated and licensed professional players since 2000. However, betting activities related to eSports are not part of the regulatory system. France has also created a national eSports organization, Fédération France-eSport, and issued two decrees regarding video game competition organization and the status of salaried professional players. These decrees state that contracts between players and teams should last 1-5 years, and children under 12 cannot compete for financial rewards. France was the first European country to implement such regulations.

Several EU countries, including Italy, Spain, and Germany, have also adopted regulatory measures for eSports. However, these frameworks lack cohesion and are often seen as fragile and manipulable. In the U.S., despite discussions, no significant legislation has been passed. However, Nevada is in the process of drafting legislation to oversee eSports and issue official licenses.

The undeniable success of eSports suggests that the industry is nearing a turning point. This makes it crucial to adopt legislation that guides its future growth while maintaining its growing audience. It is proposed that a single international regulatory body, similar to FIFA in traditional sports, oversee eSports. This body would publish guidelines, regulations, and a universal code of conduct to ensure the industry remains transparent and fair. Alongside this international body, national bodies should be established in each country to enforce these measures and regulate national issues.