eSports: A new player on the field
- Nikkie Kitching
- Mar 11, 2020
- 7 min read
Let's break it down...
In recent years, a magnifying glass has been placed on the sphere of eSports. eSports is essentially an umbrella term for competitive video gaming at a professional level. As a 90's kid myself, I fondly remember being gifted my first ever Nintendo Game Boy Colour, one of the first ever consoles that were handheld and that I could take with me wherever I go. Yet, eSports is more than just your average video game. Fast forward to 2020, the younger generation have become smarter and more tech-savvy, meaning that more and more people are turning their attention to eSports. Technology has allowed gaming fans to not only play the latest games but also stream live tournaments where cash prizes can reach six figures.
Interactive entertainment companies have started to take centre stage. One of the biggest companies in the area of eSports is Activision Blizzard which is known for bringing us franchises such as Overwatch, Call of Duty, World of Warcraft and Candy Crush to name a few. In addition, more and more sporting associations such as football and basketball clubs have started investing in eSports as they are aware it is a lucrative market. The marriage of sports and technology have created a phenomenon that is now worth hundreds of millions of dollars worldwide, looking to exceed the one billion dollar mark by 2021.
As this is a legal blog, eSports draws our attention to a number of issues that future lawyers will need to place more importance on. Clients will come in all shapes and sizes, from players to stadium companies. It is therefore crucial to carry out good practice on contracts, intellectual property, endorsements and so much more.
Below, I discuss a few of these areas in a bit more detail.
Lack of rules and regulation
At the core of any sport comes rules and regulation. You're probably wondering "when did this phenomenon actually begin?" Surprisingly, it officially started in 1972 at Stanford University where competitors met to play the game Spacewar.
Back then, the prize was a subscription to Rolling Stone magazine so there was no real need for regulation to be put in place. To this day, as eSports attracts crowds of millions, more competitors and better technology, a regulatory framework is still missing. This is probably one of the biggest issues eSports is facing.
Traditional sports such as football and basketball has existed for years. Over time, rules have been altered and developed. Today, there exists a code of conduct that players can abide by to ensure fair play. However, as eSports is still quite young, there is currently no central global organisation that governs every eSport. That is not to say that there aren't smaller governing entities. For example, there are companies that solely focus on specific matters. For instance, the Esports Integrity Coalition oversees matters like match-fixing and the World Anti-Doping Agency which focuses on drug use. Then there are other bodies that only govern eSports in their particular jurisdiction i.e. Russian eSports Federation, The British eSports Association, etc. Whilst this seems plausible for certain eSports, having a lot of bodies running concurrently can be confusing.
Ultimately, the responsibility lies with existing governing bodies who will need to come together to create a general framework. Understandably, this raises questions. Will this mean that existing bodies will form to create a partnership? How do different countries manage to work out a system that is internationally recognised but also follows their own body of laws? As each eSport is different, will there be regulations on age, censorship and content?
Players and IP
Whether you're an avid sports fan or not, it's likely you would've heard the names "Christiano Ronaldo" and "Lebron James". Some of the biggest names in sporting history. Famous players like these will often have lawyers and managers to help draft and execute their employment and business contracts. In the event of litigation, players will have a legal team to
fight their corner.
However, this is a grey area when it comes to eSports. Famous players have worked their way from the bottom often creating their own content, livestreams and gaining followers on social media. A lot of the time, they are usually self-represented and don't really follow a specific contract. This can pose problems, particularly for players who have made a name for themselves in the industry.
There was a recent dispute between well known eSports player, Turner Tenney, and his employer Faze Clan Official, a popular eSports organisation. Initially, Tenney had claimed that Faze Clan had exploited him by taking a huge portion of his earnings. Faze Clan came back stating that Tenney had made significant earnings through endorsements and sponsorships which weren't shared with Faze Clan. The case is still ongoing.
Instances like these prompt the need for clear contractual terms and a fair distribution of earnings, especially if cash prizes run into the millions. Furthermore, as technology becomes more accessible this means that sometimes players are under the age of 18. What would a typical contract look like for an eSports player? And if they were a minor, would it be enforceable?
Data Protection
"Data protection" are two words that have come to light recently following the implementation of GDPR. Though companies are taking data protection more seriously, there are still cases of major data leaks. Sometimes the reason for this is because companies are investing in new types of technology which can invite cyber crime. Hackers, for example, have been known to change, steal and even sell personal information on the dark web.
The game Fifa was created by a company called EA. EA’s latest game Fifa 20 had a significant number of people sign up for the game so they could participate in challenges and compete alongside friends and family. Registration requires the customer to submit personal information which includes DOB, usernames, etc. A number of first time customers had noticed that as they tried to submit their personal information, they had previous users’ information appear. EA responded saying “...player privacy and security are of the utmost importance to us, and we deeply apologise that our players encountered this issue today.”
With this comes the idea that even the biggest companies like EA need to place a higher amount of importance on data protection if they want to maintain their credibility going forward. The sharing and misplacing of personal information can tarnish a company's reputation and they would need to invest in new cyber strategies and safeguards should a breach occur.
Anti-doping
From Maria Sharapova in tennis to Lance Armstrong in cycling, it is not uncommon for there to be cases of doping in the sporting world. Sports teams and companies have been under scrutiny with scandals of cheating and drug use, particularly at an Olympic level. On an international scale, one of the biggest doping cases to surface was that of the Russian team at the Sochi Winter Olympics 2014 with more than a thousand athletes being accused of doping.
When it comes to eSports, drug use is no different. Just because the players aren’t out in the field doesn’t mean that they can’t take drugs before performing at tournaments. Reports have shown that many players have used Adderall. Originally used to treat ADHD, players turn to Adderall as it helps with reaction time and has the ability to combat fatigue.
For the longest time, ESL (Electronic Sports League), one of the world's biggest video game companies in the world never really had an extensive clause in their contracts regarding anti-doping. They had only mentioned that drug use is prohibited. Now that we've entered a new decade, a clause will need to be implemented to include all types of drugs; even that of caffeine and energy drinks which has proved popular in today's youth.
WADA (World Anti-Doping Agency) and ESL have joined forces and are currently working on this.
Gambling
With large turnouts at live tournaments, this has caught the attention of numerous betting companies. Betting in eSports is just like betting in traditional sports. People bet on a certain outcome and get paid if their bet wins. However, as children are exposed to technology at a younger age than 20 years ago, this can pose a problem.
These days, there is anonymity when it comes to creating an online account. It is easy for anybody to sign up to a game and pretend that they are a different age. This means you would often find underage children signing up for 18+ games like Call of Duty and Counter-Strike, two of the world's most popular games. With this comes underage gambling.
According to the UK Gambling Commission & the Gambling Act 2005, they are currently working towards the following objectives:
Ensuring that gambling is not associated with a crime or disorder, or being used to support crime
Ensuring gambling is fair and open
Ensuring children and minors are not harmed or exploited in the gambling process.
Blockchain technology and cryptocurrency
Though Blockchain has been referred to as "the next big thing", any new technology comes with its downsides. Those playing eSports have had cases where their cash prizes were not awarded and sometimes this can be difficult to trace. Blockchain technology and cryptocurrency may be able to help with this. As a decentralised platform, all transactions are recorded accordingly. In addition, blockchain will be able to bring all relevant parties together such as players and managers and also identify any cases of fraud or embezzlement. This will be particularly useful for underage gambling.
FirstBlood, a new gaming network, has invested in blockchain technology and smart contracts to ensure that once a match has been won, they take into account the result of the match and then the money is awarded to the winning player or team. Within their 2016 White Paper, FirstBlood had mentioned that they will use their means to identify players who are known for hacking or abusing the system, making it easier to make sure their network is friendly and safe. Other types of existing cryptocurrency includes Skincoin and Unikoin Gold.
Final thoughts
The world of eSports is full of potential and continues to grow at an exponential rate. Of course, this article only covers a few issues that have arisen but for eSports to maintain its longevity it will need to take these issues into account. At the moment, it is simply a case of trial and error to see if there is a model where “one size fits all”.
In my personal opinion, I believe blockchain technology has the capacity to make a huge difference to the majority of issues stated above. It will be able to streamline all transactions and provide all parties with transparency when it comes to matters of contracts, payments and endorsements. Naturally, the implementation will come with time. Although, you have to admit, for an area that doesn't follow a specific order, there is no denying that the trajectory of eSports has been nothing short of explosive.
For more information on the rapid growth of eSports, check out the following links below:
Σχόλια