The esports market is booming but reputational risks are high amid its rapid growth.
Esports grew out of the gaming and traditional sports industries but due to this rapid, disruptive growth the landscape is now characterised by its own commercial, regulatory and legal issues.
Publishers and developers control the game and generally own the intellectual property rights to content, characters and gameplay. Robust commercial agreements and careful consideration of licencing arrangements are important. Yet these stakeholders also operate in unfamiliar and constantly-evolving territory impacted by increased focus on governance, player safeguarding and the social and cultural demands of the gaming communities.
Cheating is becoming a real issue. Eight-figure prize pools, coupled with the growth of betting markets, has increased the scope for corruption, match- and spot-fixing as well as more advanced methods of cheating. Effective regulation and responsible governance are vital to protect the credibility, integrity and value of the industry and support its continued growth.
For players and teams, effective reputation and brand management is as lucrative as tournament wins and placings. The road to celebrity status brings its own challenges and expert legal support in intellectual property, defamation, media response and reputation crisis management can help drive teams to success while removing distractions enabling players to focus on the game.
League and tournament operators, venues, streaming platforms and broadcasters also play a vital role in the success of esports events. The challenges they face, such as broadcast and streaming rights, are similar to those in traditional sports. However, the shift to a digital setting means that cybersecurity and data protection are more important than ever.