The entertainment scene has seen a significant medium transition, shifting from conventional television and radio to online platforms. Social media platforms and streaming websites are the “go-to” experience for the younger generation with no signs of slowing down. Nothing has dominated the entertainment industry for as long as the online competitive scene of electronic sports, also known as esports.
Over the years, esports has experienced a surge in popularity, with players competing professionally in sponsored teams for game tournaments such as League of Legends (LoL), Call of Duty (CoD), Defense of the Legend 2 (Dota), Overwatch, and Fortnite.
The game tournaments are broadcasted to a global audience on streaming channels such as Twitch, Steam, YouTube as well as acclaimed sports networks such as ESPN and FOX Sports, attracting millions of fans worldwide to witness their favourite teams compete against each other.
Prior to the pandemic, esports enthusiasts would show their dedication to the competitive industry by attending overseas championships to support their local teams. Though the global lockdown put a halt to these events, the industry was quick to adapt and discovered a way to bring fans to the forefront of the competition – through online streaming. Twitch, Facebook and YouTube Gaming are some of the most popular streaming platforms for esports competitions. The most popular game to be streamed on Twitch was League of Legends, receiving more than 52.6 billion views globally as of this month.
A recent study found that the online gaming audience will grow in 2022 to reach an estimated 532 million, with over 261 million being those who tune into esports games more than once a month. The study went on to state that the esports industry is likely to generate nearly USD$1.38 billion in revenues on a global scale by the end of the year. At its current growth rate, the industry’s global market revenue is set to reach as high as USD$1.87 billion by 2025.
Though esports is relatively new in Malaysia, several professional esports leagues such as SEM9 have emerged in the scene with many young gamers aspiring to “go pro” and represent Malaysia both domestically and internationally, showing how lucrative the industry can be when at its peak. In recognition, this led to the launch of the Malaysia Electronic Sports Federation (MESF) as the governing body for all electronic sports in Malaysia. In 2014, it was known as Esports Malaysia (ESM), and it achieved a federation status in 2020.
Messrs Isadora & Associates, a firm based in Cyberjaya, is one of the few legal representation agencies that specialises in esports law, specifically pertaining to the needs of entertainment finance, intellectual property rights, talent agreements, regulatory compliance, contract negotiation and dispute resolution.
“There is still much left to be discovered in terms of esports law, and as its popularity grows, so will the demand for such legal services,” said Nur’ Isadora Ismail, Managing Partner at Messrs Isadora & Associates.
As the industry continues to evolve, instances of hacking, cheating—known as e-doping—manipulation of a player’s competitive edge through the modification their own software/hardware or by third-party means, infringement of players rights and obscure contracts have emerged rapidly.
“Issues such as e-doping will continue to be prevalent for as long as the sport exists, therefore it’s up to governing bodies and esports organisations alike to enforce regulations by which we can foster a more unified space for the sport to grow.”
“The industry is filled with teenage professional players, who are often unaware of the legalities in contract negotiations and how to handle bad sponsorship deals,” adds Isadora. “It is our responsibility to assist them every step of the way and help them understand what they are entitled to.”
Looking towards the future of the industry, safety measures such as anti-cheat systems have been incorporated by tournament organisers and game developers to push for fairer grounds. However, there is still a need for safeguards to be put in place to protect a player’s best interests.
It was recently announced that Matrixport, a one-stop digital assets financial services platform, would partner with esports team and organization RSG, previously known as Resurgence, to drive for financial literacy and personal finance among gamers in the community by learning more about the blockchain.
