Developments in E-Sports and E-Sports Law

With the advancement of technology, e-sports law has become one of the most prominent and influential areas in modern sports. As one of the fastest-growing sports disciplines worldwide, e-sports continues to expand under the umbrella of sports sciences and holds significant importance. Today, e-sports continues to evolve and remain up to date in a highly competitive environment among its key actors.

In Türkiye, there are 70 registered e-sports clubs and 907 licensed e-sports players, of which 63 are women and 844 are men. It is also observed that 32 million people play video games in Türkiye, and around 4 million people are aware of e-sports. Internationally, it is estimated that there are at least 400 million e-sports viewers and over 100 million e-sports players worldwide. While the concept is inherently broad and subject to extensive definitions, on the international level, it is commonly defined as:

“Electronic sports refer to competitions where individuals from anywhere in the world can connect via the internet and play games, or gather through major local or international tournaments organized at specific times.”

Accordingly, the concept of e-sports includes elements similar to traditional sports organizations, while also containing several differences that set the two apart.

a. Elements of E-Sports

Based on national and international definitions, the main actors of e-sports include “e-sports players,” “e-sports teams,” and “game companies,” which form the foundation of the sport. These actors are not limited in number and continue to grow with the support of sponsorships, investments, and other activities. As outlined above, e-sports includes certain key components.

First and foremost, it must be played on a platform that qualifies as a video game. Popular examples with large player bases include Counter Strike, Valorant, League of Legends, World of Warcraft, PUBG, Fortnite, and FIFA. These games are categorized into genres such as MOBA (Multiplayer Online Battle Arena), MMORPG (Massively Multiplayer Online Role-Playing Game), and FPS (First Person Shooter).

Another essential component is that games must be played online via the internet, which emphasizes that e-sports can only take place through electronic systems. Lastly, the element of competition plays a vital role in e-sports. Competitive physical or mental activities are generally defined as sports, and competition is a defining feature in both traditional and electronic sports.

b. E-Sports Organizations and Prize Pools

Due to advancements in technology and the evolution of e-sports, national and international teams now compete at the level of professional athletes. Some of the highest-paying e-sports tournaments include The International 10 with a prize pool of $40,018,195 and the Fortnite World Cup 2019 Finals with $30,000,000. In addition, recurring weekly and monthly tournaments offer prize pools ranging from $1,000,000 to $4,000,000. These tournaments and their prize structures continue to grow and expand rapidly.

c. E-Sports Law

The necessity of e-sports law is frequently emphasized both within sports communities and on the international stage. In Türkiye, major sports clubs are actively engaged in e-sports. Moreover, these activities are not limited to clubs and players but also include managers, streamers, and sponsors.

As a result, many areas of law come into play in the e-sports ecosystem. These include:

• The establishment of e-sports clubs
• Drafting of athlete and coach contracts (with careful distinction when such agreements resemble service or employment contracts)
• Sponsorship agreements
• Broadcasting agreements related to professional tournaments
• Drafting of club contracts and license registry processes in accordance with the regulations of the E-Sports Federation
• Transfer contracts
• Internal bylaws
• Preventive legal measures related to doping offenses and other administrative sanctions against players

All these processes must be legally integrated and regulated to prevent disputes before they arise.

d. Evaluation

With the continuous and dynamic development of technology, e-sports and related organizations are expanding at the same pace. As a competitive and online-based field, e-sports not only provides a digital arena for gaming but also intersects with many growth areas within traditional sports. The increasing size of prize pools, the advancement of e-sports players, and the institutionalization of clubs clearly demonstrate the need for structured legal frameworks in e-sports.

Since the establishment of the Turkish E-Sports Federation (TESFED) in 2018, it is evident that regulations and legal frameworks will continue to evolve and become more institutionalized. Especially with TESFED’s guidelines for players, clubs, referees, and other actors, there is now a guiding structure for legal compliance and contract drafting.

In the legal perspective of e-sports, the focus will particularly be on the rights and obligations of actors under service contracts and labor law. Contracts signed between players and clubs should clearly define obligations such as salary, bonuses, transfer fees, and the provision of equipment. In addition, insurance and other essential needs of players must be addressed within a legal framework.

Identifying potential legal and administrative risks from the very beginning of club formation and taking all necessary technical, administrative, and legal precautions will increase sustainability and longevity for e-sports actors, organizations, and clubs.

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¹ Türkiye e-spor Federasyonu, “1. Espor Çalıştayı Sonuç Raporu”, 25 Eylül 2019, Istanbul.

² Mustafaoğlu, Rüstem, “e-Spor, Spor ve Fiziksel Aktivite”, Ulusal Spor Bilimleri Dergisi, 2(2), s.84 -96. (Son Erişim Tarihi: 28.08.23) (URL: http://dergipark.gov.tr/usbd)

³ Argan, M., Suher, H.K., Ozer, A., Akin, E.ve Tokay A.M., “Game Quality: Astudy onTurkish Game Players” 2nd International Symposium of New Technologies in Sport, Sarajevo, Bosnia Herzegovina, 2007.

⁴ Paslı, A., Gökçe, G., Yollu, Y., Karaca N., “E-SPOR HUKUKİ BAKIŞ”, Seçkin Yayıncılık, Ankara, 2021.

⁵ TDK, https://sozluk.gov.tr/, (Son Erişim Tarihi:28.08.2023)

⁶ Esports Charts, https://escharts.com/tr/earnings?prizes[0]=1m_ , (Son Erişim Tarihi:28.08.2023)