INTRODUCTION:

There is a new type of sport that has become extremely modish amongst the children and adults who enjoy competitive video gaming. E-sports not only take place inside the living rooms, but now huge eSports tournaments are conducted all over the globe in big arenas where the gamers compete against each other for a specific game with fans watching on the screens.¹ Electronic sports industry has been rising constantly over the years and many companies are realising that there is a lot of money they can make from it.²

Amazon purchased the video game live-streaming platform, “Twitch,” in order to ensure itself a foothold in eSports. Globally, eSports have become the number one consumer-entertainment industry transcending the film and music industries.³ E-sport is a perfect exemplar as of how the amalgamation between the technological progress, cultural environment and traditional entertainment can open the door for a completely new and full-blown industry. Although, eSports are not universally contemplated as a sport, but it has aptly been put up by Steve Bornstein that “eSports will rival the biggest traditional sports leagues in terms of future opportunities”

Overview of E-sports:

E-sport is relatively a new conception, but competitive gaming existed quite a long time ago. It started with the bunch of kids playing video game together in a room which now have turned into a worldwide phenomenon which is sold out in stadiums. The earliest known video game competition was conducted at the Stanford University in 1972 whereby the students were invited to play the game of “Spacewar” whose grand prize was one-year long subscription of Rolling Stone magazine. In 1980, The Space Invaders Championship held by Atari was first large-scale video game competition that gained the attention of large-scale participants over the U.S which established competitive gaming as a lamestream hobby.⁴ Also with the advent of the internet, many games (especially the PC games) were benefitted.

South Korea is considered as the “Mecca of e-sports” as it has played a pivotal role in the expansion of this industry.⁵ The LAN gaming centre or PC bang in South Korea has become popular amongst the gamers as it has been providing access to expensive and high-end personal computers that are specifically designed for video gaming comparatively at a cheaper price.⁶ Competitive gaming became such a popular and respectful activity over here that the Ministry of Culture, Sports and Tourism gave its approval for the foundation of Korea e-Sport Association (KeSPA) in order to manage and regulate e-sports in South Korea.⁷ No other country has embraced the new trends of esports as harder as South Korea.

ISSUES INVOLVED IN E-SPORTS:

There is an ongoing debate on whether E-sports should be contemplated as a sport or not?

a) Treatment as a Sport:

The proponents of eSports point that the E-sports can be regarded as “real sports” as there are many correspondences between the traditional sports and eSports.

Article-2 of The Council of Europe Charter defines sports as “all forms of physical activity that by casual or organised involvement aims at expressing or revamping physical robustness and mental health, forming social relationships or obtaining repercussions in competition at all levels.”⁸ As per the definition, there must be physical exertion in order to constitute sport. Although, the presence of virtual environment and lack of physical activity makes it difficult to label them as sports. But, the players’ unique talent, skill and determination mirror that of “real” athletes, even though their physical fitness differs. Alike professional athletes, the gamers also undergo extensive training in order to maintain an equilibrium in their physical, mental and emotional health.⁹ It is not only the eSports community that regards the players as athletes, but the U.S. Federal Government have also recognized the players as professional athletes. ¹⁰ The professional players are now eligible to get P-1 Visa to visit the U.S for the purpose of participating in eSports competitions.¹¹

It was observed that the eSports viewership will continue to bear substantial resemblance to traditional sports.¹² Acclaimed for its usability and comparatively lag-free video quality, Twitch.tv is contemporary indubitable leader of streaming platforms for the video gamers. Although its integrated chat service swiftly became prevalent with abuse, it succeeded in bringing fans altogether and stimulating audience involvement. Contemporary gaming solaces now play home to a Twitch.tv app which permits the users with minimal or no technical expertise to live-stream their content to the world at the touch of a button.¹³ The Worlds 2018 has made a new record of the maximum number of viewers in the history of eSports.¹⁴ The fans not only watch it online, but the popular eSports tournaments have sold out huge arenas and stadiums.¹⁵ Every eSport game has its own professional leagues and tournaments that are held around the world and it has been evidenced that the number of gaming competitions are growing at a fast pace.¹⁶ In the year 2014, the League of Legends World Championship finals took place in the second largest arena where the FIFA World Cup took place.¹⁷ In 2017, the League of Legends World Championship was held at the Beijing National Stadium where the Summer Olympics took place.¹⁸

Manchester United even got into a bidding war with Fnatic over an eSport team. The world’s biggest football club (Manchester United) got into a bidding war against Fnatic (which is one of the biggest names in eSports) over Overwatch team.¹⁹ It is not for the first time that the traditional sports organizations or prominent sports figures or celebrities tried to dabble into eSport.²⁰ The three-time National Basketball Association champion and actor, Rick Fox became the first high profile athlete to jump into the E-sports world by purchasing a professional League of Legends Team (Echo Fox) in 2015.²¹

The eSport organizations invest heavily on “team houses” where the team can live and play together under one roof in order to escalate their practice regime and build team spirit amongst the players. Just like the athletes in traditional sports, the players in the gaming houses work within a stabilized schedule and a vigorous command structure.²² Personal trainers, life coaches, psychologists, nutritionists and chefs have been hired by the investors in order to maintain healthy lifestyle of the players.²³

Also, the universities from all over the globe have started offering eSports scholarships.²⁴ It has been observed that gaming has outreached at such a high level of competitiveness that some schools and colleges are providing financial assistance to students who play for their eSports team. The varsity eSports players receive funding for their schooling and housing in a similar manner that a college sports team receive scholarship.²⁵ With a rise in the growth rate of eSports, it is plausible that professional gaming will overhaul some or all the significant professional sports leagues and that is probably the reason why the universities are providing eSports scholarships.²⁶

E-Sport is being discussed for the 2024 Olympics. According to the International Olympic Committee President, Thomas Bach, two encumbrances were faced for presenting eSports as an Olympic event. Firstly, they would regulate those games that contain violent content. A game which promotes violence or discrimination is contradictory to Olympic values and thereby cannot be accepted. Secondly, there is paucity of a global sanctioning authority for eSports to coordinate further. Hence, it was suggested that the eGames that are centred around games that stimulate real sports (FIFA series and NBA 2K) will be recognized.²⁷ There seems to be a long way ahead for the eSports to be completely accepted into the Olympics but there are fine chances that it could be an Olympic sport in 2024.²⁸ Moreover in 2022 Asian Games, competitive video gaming will be a medal event. ²⁹

Alike traditional sport, cybersport has its fair share of professionals, cyber athletes, trainers, commentators, spectators and celebrities. Hence, eSports can be regarded as competitive sports in the same way chess, poker, darts, pool, ping pong, shooting and snooker are given recognition. They are considered as mind- based sports that require extensive training and focus like any other sport.³⁰

b) E-sport is an electronic sport but not a REAL sport

The opponents argue that electronic sports cannot be given the status of a real sport as competitive video gaming do not involve physical exertion, athleticism, skill and stamina which are necessary requirements of a sport. It was being pointed that considering eGames as a sport is a civilizational rather than a semantic impediment.³¹

According to Oxford dictionary, sport can be defined as “a pursuit that involves physical exertion and skill in which a person or team competes against another or others for leisure.” Sport has three fundamental attributes namely the physical component, competitiveness, institution or a governing body that establishes rules and regulations. Although eSports are competitive and institutionalized but there is lack of physicality.³² The maximum physical force optimized to play an eSport is the ability to press the buttons of the controller which results in zero physical exertion. By clicking the buttons on the controller swiftly with your thumbs neither make a gamer an athlete nor make gaming a sport. Although, eSports require certain amount of intelligence and skill to strategize and play the game. But gaming is not as same as playing a sport even if it requires skill and hence by categorizing cybersports as a sport is deemed unfit.³³ According to the former ESPN President, John Skipper, even the growing popularity of eSports won’t mark them as a sport as they are competition just like chess and checkers.³⁴ Presently, eSports are not wholeheartedly considered as a sport but there is a potential that they will be recognized as sports in the future.³⁵

Lack of proper governance and regulatory framework:

Although, eSport is a booming sector which has been rising massively over the past couple of years but till date there is no unified source of governance. Governance in eSports is quite tricky as it is such huge and fast-paced industry which incorporates numerous games.³⁶ There is no formal body of regulation in the eSport industry. Nevertheless, there are some national organizations but there is no global authority to modulate eSports. With the absence of global authority, there will be inconsistency in the rules and regulations for the international tournaments. Presently, individual games are regulated by the game publishers. Some publishers have full control of the governance of their games and some don’t get involved at all. It has been observed that there is lack of regulations for competitive integrity and paucity of regulations and policies for duty of care towards the players. It is recommended that eSports governance should switch on from publishers to (centralised) Global Sports Organisation as their main governing force in order to ensure more unified eSports governance for divergent games rather than different publishers governing their own games.³⁷

Intellectual property rights:

Intellectual property is a crucial subject area that eSports industry is endeavouring to tussle with. E-sports involve considerable number of important intellectual property issues such as:

a) Whether the organizers are permitted to make copies or replications of a game for their eSports tournaments or any other purpose?

Generally, computer and video programs are capable of being protected under the Copyright Act. Although, merely the specific manifestation of a computer program (i.e., the source code and object code) is capable of protection. Apart from that, audio visual components of a computer or video game (such as game characters, landscapes or other contents) can be fortified under the copyright law provided they surpass the threshold of originality. Under the copyright law, the diverse elements can be protected discretely in one of the work categories (such as cinematographic works) or altogether with the overall work. Against this framework, the permanent or interim replication of a computer or video game is subject to the consent of the rights owner (who is usually the publisher). The end user license agreements frequently used by publishers normally prohibit the mercantile use of computer and video games. Hence, the organizers of eSports tournaments are required to make sure that they procure the obligatory usage rights in order to make the computer or video game publicly accessible at their tournaments or by other distribution channels such as online streams.

b) Whether there is any performance right for the participants?

Usually, the performers (actors or singers) have the right to their performances being recognized as their own. The issue is whether eGamers can be contemplated as performers in the same manner as actors or singers and thus possess copyright protection for their style of play? The precondition for a corresponding ancillary copyright would be that eGamers make a discrete interpretation of the work while playing video or computer game. Although, real athletes are not regarded as performers. Whereas, video and computer games can primarily be considered as works and hence, an ancillary copyright subject to the respective video or computer game should be accorded at least to the professional eGamers. For example, some eGamers are required to develop exhaustive strategies to be victorious which might be regarded adequate for according an ancillary copyright. On the contrary, some eGames only entail a certain level of dexterity, finesse and responsiveness. Consequently, it might appear quite undetermined that they could be expounded in individual modes, particularly as the frontiers appear to be quite blurred.³⁸

Exploitation of players:

E-Sports is an electrifying new arena, not only in the sports industry but also in the legal field. It not only involves commercial and intellectual property issues, but it also draws the attention of the industry for the protection of players. The progression of E-sports from indoor hobby to professional gaming demands a discourse in order to recognize the legal status of the players for the purpose of safeguarding their rights.³⁹ Although, the eSports industry is thriving persistently over the years but still it is unable to address the issue of gender diversity. In most of the competitive eGames, male players and teams tend to subjugate. Women are not precluded from joining teams with male players or participating in the big events, but still there are few female players involved in eSports. Certainly, there are plenty of opportunities for women to excel in this field. But there are issues such as existing wage gap between male and female players,⁴⁰ incessant exploitation and sexual harassment which is responsible for less female participants in the eSports industry.⁴¹ Sexual abuse has even become prevalent in the livestreaming community. ⁴² Apart from gender inequality, there have been concerns over the standard of life and potential maltreatment of players by the organizations. Some of the organizations have been accused of practicing incessant harassment, refusing to pay competitive remuneration and developing harsh training regimes. The players are expected to train for 14-16 hours per day sitting in small semi-private cubicles in order to minimise distractions and maximize playing hours. Hence, it becomes essential to protect the rights of the players by providing them appropriate infrastructure, better job security, fairer compensation and protection from exploitation.⁴³

Gambling:

Illegal gambling in eSports is becoming a pervasive problem. There are two main modes for eSports betting: in-game purchase (skin betting) and cash gambling (gambling with real money). There are numerous cases where cash-equivalent items (such as skins) have been wagered. Skins are virtual collectibles that changes the mien of a player’s in-game avatar, equipment or weapons. The cash gambling on the other hand is alike the cash-based market for traditional online wagering.⁴⁴ Gambling on eSport matches is considered illegal in major markets. Also, the key to match fixing is in gambling.⁴⁵ So, in order to circumvent gambling scandals, it thus becomes necessary to intervene and regulate the market.

Cheating:

Cheating in online gaming competition is quite prevalent that it ruins the uprightness of eSports industry. Gaming developers and the eSports organizations are in a constant battle against the hackers and people who make cheat codes. Dell even advertised a new laptop in China by claiming that it is good for cheating at PUBG.⁴⁶ There is no real way to stop cheaters besides holding offline tournaments.

Also, the cyber athletes frequently make use of the stimulants in order to boost their concentration, improve performance and prevent weariness. The unregulated use of performance- enhancing drugs not only undermines the ethos of eSport but also causes severe risks to the players’ health.⁴⁷

Regulation of E-sports:

E-sports, alike traditional sports are fraught with challenges. As eSports is budding into a big industry, it has involved many legal and ethical issues which needs to be addressed. Hence, there is an immediate desideratum for proper governance and regulatory framework.

The eSports industry lacks a unified source of governance. Presently, each eSport is discretely governed by the game publishers. The game publisher governs with full legitimacy based upon the fact that the game is their intellectual property. The other impediments with eSports governance are: lack of uniform regulations directed at ensuring competitive integrity and paucity of policies and regulations for duty of care towards the players.

There have been two cardinal strives at instituting a Global Sports Organisation (GSO) for eSports, international e-Sports Federation (IeSf) and World Esports Association (WESA). Both organisations seek to attain most of their legitimacy by inputs rather than outputs. IeSf seeks this by essentially imitating the model of traditional GSOs, whereas WESA does this by having illustrious eSports brands as their members. None of the organisation has been responsible for any results that are favourable for the industry, rather than their own organisation. Out of the two, WESA is more plausibly the organisation with potential to bloom in real eSports GSO as IeSf comprises of many national federations. This system of governance is abysmally suited to the industry.⁴⁸

POLICY RECOMMENDATIONS:

For improving the governance and regulation of eSports industry:

In lieu of being guided by the actions of publishers, eSports governance should move towards a sphere where a global sports organisation (GSO) is the chief governing body. A GSO would tend to provide for a more unified eSports governance across divergent games than different publishers governing their own games. Global regulation is indispensable for the long-term subsistence and consistent growth of eSport. Such an arrangement will provide certainty and consistency throughout the eSport industry.⁴⁹

Apart from that, it is also essential for the governing bodies to take their roles and responsibilities quite seriously. The game publishers are still the most legitimate authority. The governing bodies can play a peripheral role where they can formulate minor forms of policy or make deals. In order to become a true GSO, the organisation needs to be more licit than a publisher. The areas where publisher’s governance is lacking, a GSOs can step in. WESA has a more potential to become a proper GSO as it has several pertinent actors as its stakeholders.⁵⁰

For safeguarding the intellectual property rights:

The game developers usually own the IP rights associated with the content, characters and gameplay of an eSport game. By granting the permission to use these IP rights can benefit the game developers in promoting their games and strengthening their brand in the eSports industry. Likewise, the support service providers and eGamers can gain widespread recognition and earning power by being permitted to use eSport IP. Hence, the developers and eGamers should consider the potential licensing arrangements casing the use of eSport IP as being mutually advantageous. This licensing arrangement is also likely to cause unwarranted use or use beyond the grant of licence. In order to overcome this issue, a pre-emptive analysis of prospective rights associated with eSport content under the present IP regulations can avoid future disputes and potential liabilities.⁵¹

For Preventing Players’ Exploitation:

As eSports raises labour law issues, there is a need to provide protection to the players by enacting relevant laws pertaining to labour in eSports. Also, the players need to be vigilant with regards to the terms and conditions of their contracts. They must ensure that the contract must state their salaries, timely payments and working hours. Furthermore, legal assistance and awareness must be provided to the players with regards to the endorsement agreements.⁵² There is an immediate need to establish women’s complaint cell in order to prevent the harassment and exploitation of female players.

For Intercepting Illegal Gambling and Cheating

Regulated eSports gambling is the pathway to legitimacy. In order to combat underage gambling, stern age verification measures should be adopted.⁵³ Stringent actions should be taken against the players and the parties involved in the match-fixing in order to overcome the issue of match-fixing as it tumbledown the probity of the eSports industry. It is also advisable to conduct random drug testing for the players in order to prevent doping.⁵⁴

CONCLUSION:

E-sports mania is quite prevalent amongst the youth. It has been widely extolled, played and viewed by the people. It has been regarded as the “manifestation of sportification”.⁵⁵ As the eSport industry is blossoming very gracefully, it has involved many legal and ethical issues which must be addressed. In order to ensure its proper functioning, the government must play an active role in the regulation of eSports industry by formulating uniform set of rules and ethics guidelines. This industry is doing stupendous business and hence it must ensure fairness in order to get more eyeballs and wallets into the market.

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Received on 06.11.2024 Revised on 12.12.2024

Accepted on 10.01.2025 Published on 17.03.2025

Available online from March 26, 2025

Asian Journal of Management. 2025;16(1):54-60.

DOI: 10.52711/2321-5763.2025.00009

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