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Esports Industry Labor, Employment Law Concerns
The esports industry is a breed apart. The novelty, dynamism and creativity that has spurred its remarkable growth in recent years differentiates it from most other industries. In 2021, the global esports market was valued reportedly at just over $1.08 billion, an almost 50% increase from the previous year.
From a legal perspective, however, esports faces many of the same legal concerns as other industries. In particular, the esports world must contend with the same labor and employment issues that more established industries have been navigating for years.
One of the issues facing the esports industry is the classification of professional players as employees versus independent contractors. This issue is of particular concern for companies operating competitive esports teams and/or using the services of content creators. The misclassification of a worker as an independent contractor can have serious repercussions. What makes a worker an employee as opposed to an independent contractor is a complicated question; the analysis varies from state to state. Some states, such as Texas, rely on a multi-factor test to answer this question. Under Texas Workforce Commission guidelines, factors such as the employer's right to control the work and the manner of payment are considered and weighed against each other with an emphasis generally on the "right to control."
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