Esports

Welcome to the Chris Farnell blog. The esports gaming industry is expected to continue to grow over the next few years and consequently, as seen with the sports industry and gambling, so is the demand for esports betting services. This enthusiasm for esports betting services is occurring. Just as with traditional sports, fans follow teams, watch matches and even attend cup finals, cheering on their favourite stars from around the world and the professionalisation of esports continues to accelerate at a blistering pace. 

In 2020, European giants Fanatic secured a $10m investment before going on to successfully close a £2m crowdfunding round. Similarly, fellow UK team Excel Esports continued their professional evolution by securing a groundbreaking partnership with a non-endemic sponsor, BT.  

Excel also brought in new leadership, including the former director of global marketing at Adidas, to help further their aim of becoming a leading household brand. However, it is not only esports teams that are looking to professionalise. As demonstrated by the number of disputes, there’s been a real increase in esports players seeking to protect themselves by appointing their own legal advisors.

Sports regulators also around the world seem to be gearing up for a year of introducing tougher rules.

For instance, following high-public defeats for the English Football League and Uefa in landmark judgments opposite Derby County and Manchester City respectively, we are likely to see changes to the regulatory regime that football clubs are subject to. 

In particular, this could mean the introduction of salary caps in the Championship to replace the existing financial fair play rules. 

Fans of several clubs will be hoping that the regulators take a sensible approach to enforcement, though, ultimately recognising diminution in value of club’s assets and revenues that were completely unforeseen and have impacted even the best run clubs. 

We are also likely to see the imposition of stronger rules, including caps on fees, for agents. 

Such measures will be hotly contested, though, and ironically, in light of Brexit, may be stopped in their tracks by legislation that originates from Brussels. 

booming demand for esports betting services has created commercial opportunities for players in the esports industry. Indeed, the esports betting industry appears to be primed for quick growth. However, the extent of this growth will depend on, among other things, how consumers, legislators, and industry stakeholders work together to ensure that the various stakeholders’ concerns and perspectives are adequately represented. We will continue to monitor how the esports betting industry continues to adapt and grow.

Check back soon for more!

Chris Farnell has experience advising on sports matters. You can follow Chris Farnell Lawyer on Twitter, where we frequently share our recent advice on sports law. Visit the Chris Farnell IPS Law website here for the latest big sports issues here. You might be interested reading the Chris Farnell Charlton news here.

 Sports Betting

Welcome to the Chris Farnell blog. Sports gambling has a long history in the UK and was first legalised by the Betting and Gaming Act 1960. It is estimated to generate £15 billion in annual revenues and is growing at a rate of up to 8% per year. However, following increased media and parliamentary scrutiny in recent years, with heightened public awareness of issues such as gambling addiction, the industry now faces potentially drastic legislative or regulatory interference.

The Conservative Party’s 2019 UK election manifesto promised to “take action to tackle gambling addiction” and made a commitment to review the Gambling Act. With a view to reducing gambling harm, a House of Lords Select Committee report (the HL Report) urged the Government to enact over 50 recommendations before commencing the upcoming Review. Once the Government’s response, required by the end of September, is received, the House of Lords is expected to debate the HL Report, although the timeframe for such debate has not been fixed. 

Meanwhile, the Gambling Commission has been increasingly flexing its enforcement powers, issuing its record fine by some distance of £11.6m to Betway for accepting stolen money from high-spending and potentially addicted ‘VIP’ customers. At the same time, the Gambling Commission has received criticism for its failure to revoke Betway’s licence.

It is anticipated that one of the most likely measures to be introduced by the Review is the gradual prohibition of advertising by betting operators on sports kits and at sports grounds. Perhaps in anticipation of the Review, and a potential ban, betting companies have already come up with novel ways of reacting to a changing public attitude towards sponsorship. 

At this crossroads in the relationship between the sports and gambling industries, companies may weigh up their odds by reflecting on the diverse reactions to imaginative approaches to sports sponsorship. However, in the face of heightened media attention on issues surrounding gambling harm, reflected in increased parliamentary scrutiny of the relationship between gambling and sports, the odds are stacked in favour of a legislative and regulatory overhaul. This could well lead to tighter controls in the UK sports betting industry, particularly in relation to sports sponsorship and advertising.

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Chris Farnell aims to keep you completely up to date with any changes in UK legislation. Learn more about Chris Farnell online here. Visit the IPS Law website here.  Read the latest Chris Farnell Charlton news here.