Esports has gained immense growth in recent years, with it surpassing even traditional sports (and similar) events in terms of viewership. Brand sponsorships have become bigger, prize pools are larger, and teams have gained more fans than ever before. Despite this growth being rapid, it is still unregulated, which has led to an array of negative side effects for professional infrastructures and stability. One thing has become abundantly clear: something needs to change. Government regulation might just be exactly what is needed, with it being the next evolutionary step in an ever-growing sector.
Protecting Stakeholders: From Pros to Punters
The first step in regulating such a large sector would be ensuring legal recognition and establishing a stable framework. This is essential for all parties involved, whether it be the professional gamer or the brand sponsoring them. For one, athlete welfare should be a top priority. What standard employment laws are in place for these teams? Do they get guaranteed salaries (at a fixed amount and recurring cycle), and are there minimum age requirements? Proper contract oversight would also play a role, as it would ensure each athlete is protected and does not fall victim to malicious organisation or team practices. Esports betting, naturally, has grown significantly as well, which calls for robust oversight to protect competitive integrity.
While government involvement here is non-negotiable, it also helps to look at how such activities are managed in other sectors. Australia is a good case study, as it is considered ahead of the curve regarding its regulation of the gambling space. The best australian online casino offers punters a mix of classic pokies, live dealer games, and secure banking options, making gambling an easy and enjoyable experience. Player safety is prioritised (with the use of PayID), results integrity is guaranteed (through certified RNG tests), and the overall platform is government-sanctioned and licensed. This presents the perfect archetype to follow when setting up a regulatory framework for the massive sports betting market. It also further calls for government intervention when looking at current gambling standards.
The Non-Endemic Floodgate: Investor Confidence
Esports, despite its sheer size and popularity, still sits in a rather uncomfortable position. Its formal recognition as a sport differs from country to country, which causes further displacement for the sector. Governments officially recognising eSports would open the floodgates to not only a formalised, recognised industry, but also serious, long-term capital. Think of it this way: institutional investors and large, non-endemic brands are always going to be hesitant to fund an industry that is lacking in legal definition. The Norwegian eSports organisation, Heroic, is a great example of how the industry is impacted by this lack of trust.
Back in 2023, the organisation needed to raise USD 1 million to keep its operations going by 2025, which it has done, earning just enough to stay afloat. Global governmental recognition of eSports could have changed this, as it is one of many reports of such organisations struggling to fund themselves. In turn, it opens up a stream of tax revenue that flows directly back into the state, as can be seen in South Korea, the USA, and even Finland. Additionally, investors get their peace of mind through demanding standardised financial reporting and governance, making it easier to justify investments.
Visa & International Talent Mobility
A huge point of contention in the eSports sector right now is the lack of efficiency when it comes to travelling for global competitions. It is no secret that athletes are privy to a specific type of visa that allows them entry into a country for the sporting event they are attending. As many governments do not recognise eSports teams as athletes, it creates an administrative nightmare for management. It hinders global competition and slows growth significantly, as these processes can take substantial time to get resolved. A way to combat this would be for governments to establish a travelling visa for eSports athletes similar to the US P-1 Athletic Visa.
By standardising and categorising these athlete visas, it can eliminate bottlenecks where travelling is concerned. In turn, leagues and tournaments can become more central, which means talent can be sourced in high-value regional hubs. Not only is production value maximised, but it also removes the potential issue of competitive latency. Lastly, this will do wonders for talent flow. In establishing a stable visa system, teams that qualify for global tournaments or championships will have no issue travelling. Premier tournaments are huge spectacles, and they need to have their integrity protected; respecting players through recognition is the first step. China’s eSports sector is a great blueprint for how players should be treated on a global scale.
Investing in Grassroots & Educational Infrastructure
A supportive regulation is not just about recognising and funding current eSports organisations, but also establishing a foundation for the next generation. Professional gamers, management, sponsors, and other staff members who are on their way into the sector need that additional support. The industry is going to keep growing and has already seen the emergence of prominent talent such as T1, Gen. G, and KT Rolster (the team that took down the LoL powerhouse, Gen. G). Offering government-backed grants to universities and colleges (the same way they are provided for sports programs) is a great starting point.
Providing scholarships and funding can help lay the groundwork for gamers to follow suit with a pro career. Vocational training for supporting roles is just as important, allowing future casters, production staff, event managers, and analysts to develop their skills. Beyond this, it is a matter of formally recognising these roles as legitimate career paths as opposed to hobbies or pastimes. It does not come without its benefits, as governments can diversify the national economy by creating an array of high-tech jobs. This is an investment that will pay off in the long run and benefit all parties involved.