Competitive video and table-top gaming — esports — is big business now, as everyone knows. Top-tier competitors are commanding six-figure salaries, esports leagues are proliferating, and investors are taking serious notice. However, the more complex the esports landscape becomes, the more players and others are going to need the legal services of experienced esports lawyers with deep roots in the legal issues that surround esports. In this article, the esports attorneys at Revision Legal focus on the “player side” and offer some answers to the question: What does an esports lawyer do?

Players, competition, and esports attorneys

Beyond a certain level, gaming is not just fun but is an opportunity; an opportunity to be tested, to become the best, and to become known as the best (and to be paid accordingly). Anything that attracts this level of investment and attention is going to quickly become attached to prevailing legal norms and might even generate new legal principles.

Just consider the issue of contracts (with which you will need a lot of legal assistance). If you are a competitive esports player attending conventions, you probably have already signed at least one player attendance/convention agreement. Such might have been relatively simple. But, the tighter the competition becomes, the more complex the legal contracts and agreements. For example, if you become part of a competitive team, you will be signing an individual agreement with your franchise team. This agreement will be significantly more advanced than a simple convention attendance agreement. You will need legal assistance to fully understand the obligations and responsibilities imposed by that agreement.

But, further, rights and obligations will be imposed on you by other agreements. Your franchise team will, for example, have contracts and agreements with local arenas, other gaming venues, other franchises, sponsors and marketers, broadcast and streaming rights-holders, team owners, and, if it exists, the master league association. All of these agreements might have significant impacts on you. As one example, arbitration clauses for dispute resolution are often imposed by a league meaning that such could be imposed on you by your team, with your team having no leeway to remove the provision. This is something that Riot Games has recently begun offering — but not yet requiring — for League of Legends and VALORANT competitions, leagues, teams, and players.

This, by the way, raises an interesting legal question about whether esports leagues can impose their own forms of dispute resolution even if such are “at odds” with broader civil legal rights. This also touches upon probably the most pressing question, which is the role of the game makers/IP holders with respect to players and leagues. Are leagues and competitions “just marketing/advertising” for the game companies, or can they have their own independent “legal life”?

In any event, players need to consider the practical and legal issues connected to such questions. Contracts and agreements need to be crafted with as many protections as possible for games, competitions and leagues that might terminate.

What else does an esports lawyer do?

There are many other tasks and legal services that you need as an esports gamer. As the above discussion of arbitration highlighted, dispute resolution is a major potential need. Gamers sign many contracts, and, as such, there are many potential breaches of those contracts. Attempting to resolve those is a major legal task ranging from resolving misunderstandings to lengthy, complex litigation. And results will matter if, for example, you are being falsely accused and wrongly suspended from your team. A few other legal issues include:

• Avoiding IP interference/infringement claims
• Management of your own IP
• Compliance with labor laws if you retain employees
• Protection of name, image, and likeness rights and endorsements
• Protection of other revenue streams and income
• Corporate entity formations and other business issues

Contact the Esports Attorneys at Revision Legal For more information, contact the experienced Esports Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.

Player Contracts: What Esports Athletes Must Negotiate

A player contract with a franchise team is the central legal document in a professional esports player’s career. These agreements have grown in complexity as leagues have matured, and they routinely cover:

• Compensation structure. Base salary, performance bonuses tied to tournament placements, streaming revenue sharing, and prize pool splits require careful review. Revenue-sharing provisions are particularly important: how prize pool money is divided among players, team management, and organizational owners varies widely, and ambiguous language benefits the party with more bargaining power — typically the team organization.
• Intellectual property licensing. Teams typically require players to grant broad licenses to use their names, images, likenesses, and in-game handles for team and league promotional purposes. These grants should be limited in scope, platform, and duration. A license that extends beyond the term of the player contract — or that grants the team rights to create derivative content — should be carefully negotiated.
• Streaming restrictions. Many team contracts impose restrictions on personal streaming: the games the player can stream, the platforms they can use, the hours they can stream, and whether they must use team-branded overlays and branding. For players who derive significant income from personal streaming, these restrictions have major financial implications.
• Non-compete and transfer restrictions. Player contracts frequently include provisions restricting the player’s ability to play for competing teams during and after the contract term. The enforceability of these provisions depends heavily on state law. As noted regarding Riot Games’ recent arbitration offerings, the evolving structure of esports leagues creates new questions about how traditional employment law concepts apply in this context.

Independent Contractor vs. Employee: A Critical Classification Issue

Most esports player agreements classify players as independent contractors. This classification has significant legal and financial consequences: independent contractors do not receive employee benefits, are responsible for their own self-employment taxes, and have limited access to labor law protections. However, classification as an independent contractor does not automatically make the classification legally correct.

Under the IRS’s common law test, the ABC test used in California and other states, and the DOL’s economic reality test, worker classification turns on the degree of behavioral control, financial control, and the nature of the relationship between the parties. An esports player who practices on a team schedule, follows a coaching staff’s direction, uses team-provided equipment, and is prohibited from playing for competitors looks more like an employee under these tests than an independent contractor.

Misclassification carries real risk — primarily for the team organization, which may be liable for unpaid employment taxes, workers’ compensation premiums, and employee benefits if a player is later reclassified. For the player, proper classification can mean access to health insurance, retirement benefits, unemployment insurance, and the protections of the National Labor Relations Act.

Sponsorship and Endorsement Deals: Protecting the Player’s Personal Brand

As esports players build personal followings — often through streaming and content creation separate from team competition — sponsorship and endorsement deals become an increasingly important revenue source. Esports attorneys help players evaluate and negotiate these agreements, which commonly include:

• Hardware and peripheral endorsements (gaming peripherals, headsets, chairs)
• Energy drink and supplement sponsorships
• Gaming platform and game title sponsorships
• Apparel and merchandise deals

A critical issue is the interaction between personal sponsorship deals and team contract obligations. Team contracts often include provisions that prohibit players from entering into personal sponsorship deals with competitors of the team’s sponsors. Before signing a personal endorsement deal, an esports attorney reviews the team contract to identify potential conflicts and advises on how to structure the deal to avoid breach.

Doping, Integrity, and Disciplinary Procedures

Esports leagues have developed anti-doping and competitive integrity rules that can result in suspension, fines, and bans. These rules increasingly address performance-enhancing substances (including prescription stimulants), match-fixing, account boosting (playing under another player’s account to improve their ranking), and other forms of cheating. Esports attorneys advise players facing disciplinary proceedings on their procedural rights, help them understand the evidentiary standards applicable to their case, and represent them in league hearings.

The procedural protections available to esports players in disciplinary proceedings vary enormously by league. Some leagues have adopted detailed, transparent disciplinary procedures with defined standards of proof and appeal rights. Others operate with minimal procedural protections. An attorney who understands these differences can make a significant difference in the outcome of a disciplinary case.

Contact the Esports Attorneys at Revision Legal

The esports industry is growing rapidly, and the legal frameworks governing player rights, contracts, and disputes are still taking shape. The Esports Attorneys at Revision Legal represent players, teams, and organizations on contracts, intellectual property, classification disputes, and disciplinary proceedings. Contact us through the form on this page or call (855) 473-8474.