January 15, 2018
Following the initial legal framework for esports established by the Law for a Digital Republic (LRN), published on October 7, 2016, and its subsequent implementing decrees of May 10, 2017, the Minister of the Economy and Finance, Bruno Le Maire, and the Secretary of State for Digital Affairs, Mounir Mahjoubi, jointly published a press release on January 5 announcing the first three companies approved to employ professional competitive video game players: GamersOrigin, LDLC Event, and Olympique Lyonnais.
Support for esports clubs to benefit players
Intended to regulate the organization and conduct of video game competitions, Article 102 of the National Gaming Act (LRN) specifies that any professional competitive video game player must engage in paid competitive gaming under a legal employment relationship with an association or company holding accreditation from the Minister for Digital Affairs, as defined by regulation. These accreditations allow their holders to use the employment contract specifically created for professional esports players by the LRN, which also established a legal status for esports competitions themselves.
Upon reviewing the press release, the Directorate General for Enterprises (DGE) noted that the three companies possess the organizational, financial, and material resources necessary to provide their players with training conditions tailored to their activity and conducive to their professional development.
Esports clubs: the procedure for accrediting video game players
Approval. The new competitive player contract can only be concluded with an employer holding specific approval. Indeed, not all video games will be eligible for official competitions, as the regulatory authority must establish “the list of recreational software, on physical media or online, based on a scripted storyline or simulated situations, for which competition organizers can obtain approval.” The stated aim is to distinguish video games from electronic games of chance, which are subject to specific regulations.
However, given the number of licenses currently on the market and the speed at which new licenses are produced, there remains a significant risk of inequalities arising. One can imagine the development of litigation related to the refusal of approval, which would be resolved before the administrative court.
The esports season. Indeed, it is traditionally up to the regulatory authorities to define what constitutes a “video game competition season.” While this concept is traditionally associated with fixed-term seasonal contracts and corresponds to a collective lifestyle, the esports season is based on entirely subjective elements specific to each game title: the choices and needs of the publishers and organizers.
It is likely that, given the increasing number of international competitions in the video game sector, the concept of a season will become increasingly difficult to maintain.
Esports teams: Concerns regarding the accreditation process
While the legal framework for esports has been welcomed by professionals, notably Stefan Euthine, CEO of LDLC Events and president of the France eSports association, the publication of the implementing decrees has disappointed them due to the complexity of the accreditation process, mandatory for continuing their activities. Indeed, the regulations stipulate that players joining an accredited esports club will be bound by a fixed-term contract of a minimum of 12 months and a maximum of 5 years, except in the case of ongoing esports seasons. This contract allows players to access social security and contribute to their retirement.
However, the lack of clarity regarding the employment contract, particularly concerning working hours, the applicable collective bargaining agreements, and the player’s role, remains unclear. The professionals’ concerns have been compounded by the risk of France becoming less competitive compared to other countries due to its labor laws applicable to esports.
Incidentally, it is interesting to note the extensive use of the term “e-sport” in the press release, whereas the legislature had specifically rejected this designation in the National Sports Law. On the grounds that the activity could not be associated with a sport in the legal sense of the term, the phrase “video game competition” was preferred, thus establishing a separate legal framework from traditional sports law.
