This document summarizes the business and law of esports. It discusses key numbers in the esports industry like viewership and revenue. It profiles major players like developers, publishers, clubs and players. It also outlines opportunities in areas like content, broadcasting and sponsorship. Finally, it notes some legal issues around commercialization, integrity and regulation that esports still needs to address as the industry evolves.
1. The business and law of
eSports (in 20 minutes)
Jas Purewal
Casual Connect Europe
17 Feb 2016
2. What we’ll discuss
2
1. eSports: some numbers
2. Key players in eSports
3. Legal stuff and where eSports needs to
evolve
4. Business opportunities in eSports
5. The opportunities for developers
These slides are available at:
http://www.slideshare.net/JasPurewal1/esports-business-and-law-in-20-
minutes
3. About me
3
I’m a video games and eSports lawyer. Over a decade in international law firms in
London, mainland Europe and Silicon Valley, then founded Purewal & Partners, the
first European firm to specialise solely in these areas, in 2014.
I have advised nearly all parts of the eSports ecosystem including players, clubs,
broadcasters, event organisers and brands over the last 5 years.
I <3 eSports: Hearthstone (OK), Starcraft 2 (badly), CS:GO & DOTA (don’t ask).
Come say hi: @gamerlaw.
4. eSports: just a few numbers
4
• c.500,000 years of Twitch videos were streamed in 2015 alone! (Twitch)
• Market revenue? eSports revenue estimates for 2014: $194m, 2015:
$325m; 2016: $465m; 2019: $1bn? (Newzoo)
• Hearthstone has around 40m registered accounts and monthly revenue
of at least $20-30m (Superdata; IGN)
• Riot’s 2015 estimated revenue for League of Legends was $1.6bn. By
comparison: DOTA 2 c. $238m and CS:GO $221m? (Superdata)
5. Some key players in eSports: developers
and publishers
5
Giants
Indies
Big
publishers?
6. Some top clubs (right now)
6
SKT T1 (Korea) EHOME (China) NiP (Sweden)
ROX Tigers (Korea) Evil Geniuses
(US)
LDLC (French)
Immortals (US) Alliance
(Sweden)
Fnatic (Sweden)
Edward Gaming
(China)
OG (EU) EnVyUs (French)
ahq e-Sports Club
(Taiwan)
LGD (China) TSM (US)
League of Legends: http://www.gosugamers.net/lol/rankings DOTA 2: http://www.gosugamers.net/dota2/rankings CSGO: http://www.hltv.org/?pageid=182
8. Club/player remuneration
8
(NB figures are an approx. range based on emergent industry trends – not universal!)
• Player basic remuneration
• Tournament proceeds (10-20% cut to club; 90-100% to players)
• Team sponsorship/merchandise (100% to club)
• Player sponsorship/merchandise (100% to player, but deals fairly rare still)
• Streaming (c. 90-100% to player)
• Stickers/virtual items (negotiated)
12. Legal stuff and the evolution of eSports
12
• Player/team matters
• Commercialisation problems
• Broadcast regulation/media rights
• Integrity issues (cheating, doping etc.)
• Socio-legal questions, e.g. child
protection, gambling, alcohol/adult
content
• Common standards
• Who’s minding the shop?
Image credit: Rockstar Games / http://www.slowdown.vg/2009/11/17/red-dead-redemption/
13. Some opportunities in eSports
13
• Content
• Player representation
• Clubs
• Broadcast and VODs
• eSports ecommerce
• eSports marketing/sponsorship
Image credit: icanhascheezburger.com / http://cdn.shopify.com/s/files/1/0835/8481/files/gold-in-them-thar-hills_large.jpg?10655207184190921500
14. Content opportunities for developers in
eSports
14
• All major eSports to date have been largely retrofitted for eSports.
• All the indicators point to substantial eSports growth.
• eSports is still waiting for its ‘Supercell moment’ – could it be you?
BUT…
• eSports ≠ F2P. In fact, eSports ≠ video games.
• Building an eSports-first game is hard, risky and with unique design issues.
• There will be competition (back to that Supercell moment).
• Cooperation with key eSports player and understanding the market will be key.
• Want moar tips? Drop me a line…
15. Thanks!
15
Jas Purewal
Partner
Purewal & Partners LLP
............................................................
E: jas@purewalandpartners.com
W: www.purewalandpartners.com
T: @gamerlaw
A: 1 Fore St, London EC2Y 9DT, UK
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