*This article was originally published in Law360 on June 8, 2019.
Electronic sports, known in the industry as “esports,” has seen remarkable growth in the last decade. The term “esports” refers to the growing world of competitive, organized video gaming, where professional video gamers play on a variety of different video game platforms and video games (“esports titles”) in heavily attended and publicized competitions and tournaments. These competitions are watched by millions of fans across the globe on TV or online, and by others who attend live esports events. Expert projections have shown that this year will be especially significant, with the sport reaching revenues of $1.1 billion in 2019, or year-on-year growth of +26.7%. With a global audience growing to over 453.8 million worldwide in 2019, it is unsurprising that several companies are trying to break into this emerging market. In fact, reports have projected that sponsorship in esports will generate $456.7 million this year alone.
As new companies and individuals attempt to enter this space, it is important to consider several labor and employment consequences. While many of these recurring problems are not exclusive to esports, the unique characteristics of esports highlight the importance of considering these issues before or when employers get into the esports space. Continue Reading