Legal Issues In

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 S ESL’s Pro League – Facebook; ESL One, IEM, Dreamhack -

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

[email protected]

(917) 477-7942