E-Sports Law
With the advancement of technology, many transactions and activities can now be carried out independently of physical locations. Similarly, leisure activities and forms of entertainment have evolved, leading to changes in existing concepts. In this context, alongside traditional sports-defined as physical activities performed in open or closed spaces-non-physical sporting activities have emerged through digitalization.
Electronic Sports Law (commonly referred to as “E-Sports Law”) is a concept developed to define these non-physical sports activities carried out individually or as a team. Games that were once played as casual social activities have evolved significantly with the increase in the number of players and viewership. As a result, the number of teams and their budgets have grown, along with sectoral and financial expansion. Consequently, rights and obligations of players and teams, as well as broadcasting rights, intellectual property rights, and sponsorships, have also increased.
In this respect, e-sports and e-sports law constitute a highly comprehensive and rapidly growing field. However, despite its broad legal scope, there is currently no comprehensive and specific legislation directly governing this field. Certain boundaries regarding rights have been established through the regulations issued by the Turkish E-Sports Federation (TESFED), founded in 2018. Other areas such as broadcasting rights, sponsorships, and intellectual property are regulated under general legal provisions and specific applicable rules. This creates a need for specialized legal consultancy covering multiple disciplines.
On 13 July 2020, TESFED published the “Directive on Athlete Licensing, Registration, Visa, and Transfer.” The purpose of this directive is to regulate procedures related to licensing, registration, and transfer of athletes participating in e-sports activities and competitions under the Federation. Its legal basis is the “Regulation on Athlete Licensing, Visa, and Transfer” published in the Official Gazette dated 14 December 2019 and numbered 30978.
The regulation provides general definitions and outlines certain rights and obligations of players and teams, but it does not establish a fully detailed framework. Unlike traditional sports regulations, it allows individuals between the ages of 6 and 90 who meet the required criteria to obtain an e-sports license. This reflects the nature of e-sports as an activity based more on mental skills and strategy rather than physical effort, making it accessible regardless of age.
Contracts in the Field of E-Sports
Contracts in the field of e-sports are not predefined or standardized types of agreements. Instead, they are unique contracts formed through the combination of multiple legal disciplines. In other words, e-sports contracts require expertise not only in a single area of law but across various legal fields, and they must be drafted by integrating these areas of specialization.
Player Contracts in E-Sports Law
With regard to player contracts in e-sports law, a general provision is set forth in Article 17 of the “Directive on Athlete Licensing, Registration, Visa, and Transfer” issued by TESFED. According to this provision:
- A player who undergoes a transfer must sign a contract with the new club,
- Fees related to the transfer, including the consent fee, shall be determined by the contract between the player and the club,
- If no provision regarding consent or transfer fees exists in the contract, the fees determined by the Federation shall apply.
The “consent fee” is defined as the fee paid to the current club to terminate the contractual relationship between the player and the transferring club, while the “consent document” refers to the approved document certifying that the player’s relationship with the current club has been terminated.
Since player contracts in e-sports are not directly defined in legislation, agreements between players and clubs are structured as sui generis contracts governed by general legal provisions and relevant applicable laws.
The primary obligation of an e-sports player under such contracts is to continuously improve their skills in order to achieve successful results in competitions on behalf of the club. Unlike traditional sports contracts, this development is not based on strict physical obligations but rather on mental preparation and strategic gameplay. Physical preparation is required only to the extent necessary to execute in-game strategies effectively.
Sponsorship Agreements in E-Sports Law
There are no specific legal provisions directly regulating sponsorship agreements in e-sports law. Therefore, such agreements are governed by general legal principles and commercial practices.
In sponsorship agreements, it is particularly important to clearly regulate intellectual property rights and tax obligations arising from the contract. Additionally, since e-sports competitions are often broadcast live or recorded for later viewing on digital platforms, contractual provisions regarding broadcasting conditions, viewership metrics, advertising arrangements, and similar elements must be drafted in detail. For this reason, sponsorship agreements should be carefully and comprehensively reviewed.
Key Considerations in E-Sports Contracts
Since e-sports contracts are not specifically regulated by legislation, agreements—whether between players and teams, players and/or teams and sponsors, or players and/or teams and broadcasters/platforms—must be carefully evaluated on a case-by-case basis within the framework of general legal provisions.
In particular, the rights, obligations, and liabilities of the parties must be clearly defined. Issues such as the player’s remuneration, social rights, social security, and additional benefits arising from agreements with clubs or broadcasters must be thoroughly examined and clarified.
Furthermore, as a player’s future transfers are closely linked to their development, existing contracts may significantly affect future agreements and conditions. Therefore, contracts must be drafted in a way that balances the interests of players, clubs, broadcasters, sponsors, and advertisers.
For this reason, it is crucial that such contracts are prepared by legal professionals specialized in e-sports law and contract law to ensure the protection of all parties’ interests.
If you have any questions regarding e-sports law or require legal services in this field, you may contact us.