It is one of the fastest growing entertainment sectors, yet esports lacks regulation and governance, leaving it open for unethical practices and risky behaviours.
In October 1972, a small group of enthusiasts gathered at Stanford University in California. They had come to watch the Intergalactic Spacewar Olympics, the first ever video gaming tournament. The event marked the birth of the electronic sports industry.
Esports, which encompass everything from fantasy football to massive online battle games like Fortnite and League of Legends, are a fast-growing, global marketplace with valuation expected to reach US$1.5 billion by 2020.
Unlike the first contest where the prize was a year’s subscription to Rolling Stone magazine, today’s players can expect far higher rewards. Prize money can now be as much as $24m, while audience figures now often surpass those of traditional sports.
The Intel Extreme Masters World Championship 2017 in Poland, for example, had 173,000 people in attendance and over 46 million viewers online. Professional esports athletes and teams – now major influencers, are attracting endorsem*nts from big brands, keen to resonate with next generation audiences and participants.
Although esports are fast becoming mainstream, they still operate in a world of their own, where none of the usual rules apply. Associate Professor Sarah Kelly, an expert on sports marketing and law at UQ Business School says, “esports are one of the fastest growing entertainment sectors, but there is a glaring lack of governance and regulation across the industry. "
“Competitions may be streamed directly to millions of viewers, yet the players can say and do what they like. Because esports are not yet recognised as a sport, they are not subject to various sports-related legislation, nor is much existing general legislation current enough to capture esports. While there are several governance bodies in different jurisdictions, they are somewhat fragmented, lacking any universal governance response to operate effectively on a global scale."
