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eSports Raise Labor Law Issues for Teams and Players

By Brian D. Murphy
January 01, 2018

ESports is a dynamic and growing industry consisting of professional videogame players who compete in tournaments or leagues that draw an estimated global audience of 150 million people. Some predict the industry will generate over $1 billion in global revenue within three years.

The Overwatch League, owned by Blizzard Entertainment, and the League of Legends, owned by Riot Games, are the two preeminent eSports organizations, each of which have adopted a franchise model similar to that in traditional professional sports. Teams are owned just as any other sports franchise: Robert Kraft, the owner of the New England Patriots, for example, purchased a team in the Overwatch League in June 2017 for $20 million.

The teams consist of human players-expert videogamers who have risen to the top of their chosen game. The players are expected to “play,” work, and train — sitting at a console for as long as 16 hours a day — much in the same manner a football player might exercise in a gym. The evolution of eSports from bedroom hobby to professional endeavor demands a discussion as to the legal status of the players — employee versus independent contractor — for purposes of employment laws generally, and wage and hour laws specifically.

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