Legal Issues In Esports
Roger R. Quiles, Esq.
S League Issues
S Ownership of Intellectual Property Rights S Game developers and publishers own the underlying intellectual property, not teams or players
S Broadcasting/Distribution Rights S LCS - $300 million streaming deal with MLB’s BAMTech S OWL - two-year, $90 million deal with Twitch S ESL’s Pro League – Facebook; ESL One, IEM, Dreamhack - Twitter
S Player discipline S Violations of the League’s Player Code of Conduct can result in fines, suspensions, etc. League Issues: Venue Team-Side Issues
S Establishing a business entity
S Investment
S Franchising/Slot/Asset Purchases
S Sponsorships S Exclusivity Rights
S Employee vs. Independent Contractor Employee vs. Independent Contractor
S Employees usually work for one employer on hours set by the employer S Typically receive employment benefits like health benefits, sick leave, vacation, etc.
S Independent Contractors work for a set project or length of time, can set their own hours, and have the authority to decide how to go about accomplishing tasks. S Usually receive no employment benefits
S Recently, the California Supreme Court made it harder for employers to classify their workers as independent contractors. S (1) free from the control and direction of the employer; S (2) performs work that is outside the hirer's core business; S (3) and customarily engages in "an independently established trade, occupation or business." Professionalization of Players
S Player contracts
S Sponsorships S Licensing S Exclusivity
S Branding
S Intellectual Property issues
S Immigration S Difficulties for associations/unions in Players’ esports Associations S Association v. Union S Collectivization attempts: S CSPPA S Potential OWL association What is PASPA?
S Professional and Amateur Sports Provision Act of 1992
S Made it unlawful for a state to sponsor, operate, advertise, promote, license or authorize sports betting
S Four states were grandfathered in and were allowed to operate full-scale sports betting (Nevada) or limited sports lotteries (Delaware, Montana, Oregon) Murphy v. National Collegiate Athletic Association
S Ruled PASPA was unconstitutional, citing the “anticommandeering principle” of the 10th Amendment
S Individual states now have the power to legalize and regulate sports betting just as they already do with many forms of non-sports gambling. Esports: Post-PASPA Landscape
S Many states have already taken action to legalize sports betting in their state S Five states offer full scale sports betting now S Three states have recently passed bills allowing it S Fourteen states have introduced a bill allowing it but have not passed the bills
S New revenue stream for businesses/sponsorships
S Problems that may arise in esports S Age issues S Integrity S Match-fixing S Doping Thank you!
Questions?
Roger Quiles
(917) 477-7942