Liability concerns in the eSports and video gaming industry

The eSports industry is on track to surpass $1 billion in revenue this year. Titans in this industry use different product-control strategies for eSports tournaments. For example, a category of publishers vertically integrate with their premier eSports titles and maintain complete licensing control. Another category gives third parties complete freedom to organize eSports tournaments with very little oversight. Other publishers still have chosen to license their eSports titles through a more traditional franchising model.

Regardless of the strategy employed, all players in the eSports industry — software creators, game developers, publishers, tournament organizers, retailers and players (participants) — are expected to consider their obligations and potential liability in the face of unique challenges not otherwise experienced in the traditional gaming context. In this article, we briefly highlight potential liability issues arising out of anti-money laundering (AML) regulations globally, anti-gambling regulations and tax regulations.

Daniel Leslie explores the relevant liability issues in this article.