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A new type of sport with unique legal requirements

On Behalf of | Jul 13, 2020 | Business Law

The sports industry is one of the most lucrative industries in the world, bringing in profits worth billions of dollars annually. Online gaming is another relatively new type of sport. Online gamers in Indiana and around the world regularly participate in tournaments against each other, usually from the privacy of their own homes. Some gamers take these competitions to the next level by holding their tournaments in actual arenas, having them broadcast to their audiences around the world. For some competitors, their gaming setup has become a valuable, profitable commodity known as esports.

With esports, gamers compete for major cash prizes. The audience may be able to get in on the action as well by putting in wagers and bets on which gamer will win. These live events have become exciting spectator sports that have netted huge profits for all involved.

Any time a new industry or segment of an industry is born, new laws have to be developed. With esports, gamers enter into contracts with major networks or sponsors, prompting the need for legal professionals who are equipped to handle all of the challenges and issues that accompany these deals.

There may be issues where the companies that produce the games want to exercise rights over their products. Endorsement deals for players can be very complex as they permit players to allow their images or likenesses to be used in or on a wide variety of different products and mediums. Players may also want to share in the profits that networks or streaming services get by broadcasting the games. Players need contracts that protect their best interests so that they profit off of the esports experience as much as everyone else.

By working with law firms that understand esports business law and contract issues, players may help protect themselves. It’s such a new area of law that having someone on their side who understands the ever-changing rules may be beneficial.

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