Events
IAGA SUMMIT New York 2017
Ryan Morrison, Founding Partner Morrison & Lee LLP
Ryan Morrison has made a name for himself through ensuring the law protects everyone. Having worked on more esports player contracts than anyone else on the planet, Ryan has seen the kinds of headaches that pro players deal with commonly. Deemed "The Video Game Attorney" by the countless developers and players he has helped through his free online legal Q&A's, Ryan understands that this new and innovative industry requires a new and innovative approach to law.
Cashing in on Call of Duty. Is it possible to monetise eSports?
Gambling on video games has grown unexpectedly and exponentially in the last three years. International video game tournaments have increased the visibility of eSports, as well as increased the opportunities for wagering not only on the winners of these tournaments, but on events that occur within the game. With the crackdown on illegal unregulated in-game and “skin” wagering, operators are now looking for ways to tap into the public desire to gamble on eSports. G3 speaks to IAGA panelists Ian Smith and Ryan Morrison about the opportunities and challenges inherent in monetising this global phenomenon
Ian Smith, Integrity Commissioner, Esport Integrity Coalition, ESIC
Ian Smith is the esports integrity commissioner. Ian is a UK lawyer with over 20 years’ experience in traditional sports, primarily in regulation and governance. His particular focus has always been the connection between the athlete and the rules and regulations that govern the athletes’ professional life. Ian left private practice in 2004 to go in- house as legal director of the Professional Cricketers’ Association in the UK where he was responsible for advising players on a range of issues, but also negotiating, on their behalf, the contracts, rules and regulations that applied to them, such as the Anti-Doping and Anti-Corruption Codes. For two years between 2013 and 2015 Ian also ran the Federation of International Cricketers Associations (FICA).
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What are the key challenges in introducing gambling into eSports?
Ian Smith: I don’t see it as a challenge to introduce gambling into esports – that ship has sailed – there is already gambling in esports and it is growing exponentially. Tere is legal and illegal, regulated and unregulated, visible and invisible. Te challenge is to ensure esports retains its integrity in the face of widely available gambling. Where there is a market, there is always someone trying to manipulate that market and the only question is whether or not they are succeeding. Over 90 per cent of match-fixing is motivated by betting fraud, so that is what esports has to deal with, and fast.
Ryan Morrison: Te key challenges with introducing gambling into esports come from both directions. In one matter, it's a near impossible endeavor to explain to the normal gambling regulatory boards throughout the world what exactly esports are. Will they understand what a skin is versus a virtual currency versus real world money? Likely not. On the flip side, coming into esports legitimately, from a gambling avenue, means you will be competing against a near endless amount of sites *not* following the law. How can the legitimate compete against the cheap and unregulated?
Who should be the ones policing eSports and keeping players safe?
Ryan Morrison: I am a huge fan of self-regulation in the digital age. Te ESRB is a great example of the video game industry policing itself so outside legislation, which would be too broad or poorly written, never got introduced. However when we see terrible humans like Trevor Martin or Josh Beaver tricking their fan bases into illegal underage gambling, or we see giant mega-corporations like Valve looking the other way, we are begging for outside regulation as an industry.
Ian Smith: Te whole industry ought to band together on this common threat – that is what ESIC is trying to promote – a common approach to a common problem. We need publishers, tournament operators and platforms, teams and players and betting operators and regulators to work together to make esports safe for everyone, including gamblers.
Should the eSports industry self-regulate or should operators be controlled by Gaming Control Commissions?
Ian Smith: Te esports industry should self-regulate (and they better get on with it before an external agent like the EU/EC seek to regulate them) and betting operators should be controlled by Gaming Control Boards – good ones!
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