In 2016, the legislature proposed an initial legal and legislative framework for esports, providing it with an independent legal regime inspired by pre-existing frameworks.

The complexity and breadth of the sector, however, cannot limit the entirety of the rules likely to apply to the diversity of esports stakeholders to this initial legal text.

As part of the preparation of the Digital Republic Act, the Prime Minister commissioned a parliamentary progress report on esports, which was submitted on March 24, 2016, to Ms. Axelle Lemaire, Secretary of State for Digital Affairs.

In summary, the report identifies two major risks in the development of esports practices, relating to the organization of competitions. It must specify the conditions for holding physical and paid video game competitions, their access to minors, and their audiovisual broadcasting.

Similarly, the status of unprotected esports players needed to be clarified to allow them to benefit from a specific employment contract and a social status similar to that of a professional athlete.

Within the Law for a Digital Republic, the legislator enshrined the first legal provisions specifically to regulate esports. Refusing it the status of sport, which was impossible to implement, the latter focused via two articles 101 and 102 on the two problems deemed the most important: the control of competitions and the protection of players: The term “esports” is abandoned in favor of “video game competitions” characterized by a “confrontation, based on a video game, of at least two players or teams of players for a score or a victory.”

Video game competitions: Event organization

Identified as a form of gambling, the rules applicable to the organization of esports competitions have been incorporated into the Internal Security Code in Articles L321-8 et seq. Approved and declared competitions require the physical presence of players to consider the possibility of winnings or cash prizes, which are also regulated.

“A salaried professional competitive video game player is defined as any person whose paid activity is participation in video game competitions in a relationship of legal subordination to an association or company approved by the Minister for Digital Affairs, as specified by regulation […]

[…] the organizers declare to the administrative authority, under conditions set by decree of the Council of State, the holding of such competitions. This declaration includes the information allowing the administrative authority to assess compliance with the conditions set out in the first two paragraphs.”

The text also specifies that the possibility thus given to organize such competitions does not include “taking bets”, the latter remaining under the regime of prohibition of lotteries.

Esports & video games: Control and sanctions

Legally, the organization of video game competitions appears to be governed by common law for organizations, with the exception of the various mandatory declarations required by the Internal Security Code and other additional provisions. Their conduct may be monitored by the ANJ (National Gaming Authority, formerly ARJEL), which is able to take action against organizers of illegal online esports competitions.

A foreign organizer of online video game competitions will be subject to the obligations of French law and may therefore be subject to formal notices from the ANJ and sanctions provided for in the Internal Security Code if the competition is directed at French players.

It should be noted that the administrative authority responsible for the management and monitoring of video game competitions is not the ANJ but the “Department of the Ministry of the Interior in charge of racing and gaming.” The organization will have control over the mechanisms guaranteeing the payment of winnings in cases where the winnings or prizes exceed the sum of 10,000 euros.

Esports & video games: Status of professional players (employees)

The status of players is regulated in Article 102 of the said law, which states that they are subject to labor law, more specifically to a fixed-term contract, like athletes. The status of professional video game players thus appears very similar to that of professional athletes: it is marked by similarities between careers and the modes of exercising their activities, as recommended in the interim report. However, certain prerogatives of athletes are not extended to video game players, such as access to financial aid and state-funded social security coverage, which some professional athletes are entitled to.

Article 102 of the law of October 7, 2016: “III. – Any contract by which an association or company benefiting from the approval provided for in I of this article secures, for remuneration, the participation of a player referred to in I of this article is a fixed-term employment contract.”

Video Game Competitions: Different Types of Esports Organizers

The organizer of an esports competition can be defined as the individual or legal entity responsible for initiating the event and managing all the stakeholders and services involved in its execution. It is also possible to distinguish between a technical and specialized organizer, mandated by the event creator to carry out the video game competition, particularly its logistical aspects.

As such, the creation and implementation of an esports event currently depends on three entities, all motivated by the competition’s reach and visibility: video game publishers, player associations for a particular video game title, or third parties specialized in organizing this type of event for the purpose of promoting products or services.

Esports & Video Game Competitions: Variety of Applicable Rules

In addition to the specific legal framework governing esports, the holding of a video game competition and the physical participation of players are governed by traditional law applicable to public or private events, such as concerts, exhibitions, trade shows, or sports competitions, the collection and management of personal data, etc.

The multidisciplinary nature of organizing an event involves a variety of reference texts spread across different codes and legislation: the Local Authorities Code concerning the responsibilities of mayors and prefects in relation to public safety, health, and public order; the Construction and Housing Code concerning the opening conditions for establishments open to the public (ERP); the Highway Code for all events using public roads; the Civil Code regarding compliance with safety regulations and liability frameworks; the Criminal Code; the Labor Code; and the Intellectual Property Code.