Sports beyond football: The esports and video games resolution of the EU Parliament

The European Parliament resolution of 10 November 2022 on esports and video games (2022/2027(INI)) takes into account multiple earlier reports, proposals and further sources to assess the current situation of video games and esports both in Europe and globally. Parliament acknowledges the industry’s inherent risks and challenges, including safeguarding of minors, cheating, misuse for online violence and disinformation, at the same time as emphasizing the industry’s positive impact on society and the economy, its potential for technological and creative innovation, cultural values and the development of sports in today’s wider sense. Many aspects of gaming come with both risks and benefits for the mental, social and physical development intertwined, especially for young people. To balance these advantages and downsides and to fully embrace the potential of the video games and esports industry, an effective legal framework - "the rules of the game" - and a common, long-term European strategy is called for. The European Video Game Strategy should include, among other things, more investment in the video game sector for greater support in research and development, the promotion and support of video games developed in Europe, the effective protection of vulnerable consumers, primarily  minors, and the strengthening and enforcement of intellectual property rights of all stakeholders in the gaming value chain. The European Parliament sees great economic and social value for Europe in the video games and esports industry and calls on the Commission to launch initiatives to promote European video games.

The Parliament also highlights the meaning of esports and recognises the potential of sports video games and virtual sports as a bridge between the physical and the digital. Both physical and digital sports represent the same values that are also fostered by the European Union, such as fair play, non-discrimination, teamwork, leadership, solidarity, integrity, antiracism, social inclusion and gender equality. The European Parliament calls on the Commission to show more commitment in this sector by developing a charter to promote European values in esports competitions, creating guidelines on the status of professional esports players and establishing a visa system for esports participants.

The impact this endorsement will have on the video games and esports industry can hardly be overestimated. Movement is taking place on several levels - see here. The Parliament’s Internal Market and Consumer Protection Committee (IMCO) approved a draft report on consumer protection in online video games on 12 December 2022 with a strong majority. It calls for regulation to better protect video game players from manipulative practices and addiction. In particular, enhanced protection of minors, the regulation of in-game purchases and the prevention of addiction-feeding game designs (such as certain variants of “loot boxes”) are in the spotlight. In this context, IMCO raises the question whether the current consumer law framework is still sufficient to address these concerns. If not, the European legislator is called to take action to establish a harmonised European regulatory framework that ensures a high level of consumer protection, and in particular for minors. IMCO also calls on the Commission to launch a European Video Game Strategy that unlocks the economic, social, educational, cultural and innovative potential of this sector, laying the foundations for the EU to become a leader in the global video game market.

With both these corresponding initiatives, the European legislators send a clear message of the gaming industry’s strong role for European market, while at the same time acknowledging its corresponding obligation to safeguard the interests of consumers, and in particular of the strongly represented group of under-age gamers. To date, the gaming sector is primarily regulated at national level – with the exception of certain EU harmonized initiatives such as the upcoming Digital Services Act (DSA), the Audiovisual Media Services Directive (AVMSD) and the DSM Directive which impact individual aspects of gaming. We are ending this year 2022 on the hopeful note that the envisaged initiatives will be swiftly promoted by the European legislator and will foster an innovative, vibrant and competitive European landscape for video gaming and esports that strengthens the interests of players and stakeholders on every level.

Authored by Anthonia Ghalamkarizadeh and Fabian Stocks.