Legal Positioning of eSports under the Basic Act on Sport

The Importance of Legal Awareness in the Esports Industry

Many esports players and organization members aim for esports to be recognized as a competition that contributes to the healthy mental and physical development and fulfillment, similar to traditional sports.
From this perspective, there is an increasing need to examine the relationship between the rapidly developing esports industry and existing Japanese legal systems.
In particular, with the growing number of participants, the rising prize money, and the increasing number of international tournaments, the importance of legal frameworks is gaining more attention.

Background and Fundamental Principles of the Basic Act on Sport

In light of this situation, it is essential to first review the fundamental legal framework concerning sports.
The Basic Act on Sport was established by completely revising the Japanese Sports Promotion Act, which was enacted in Shōwa 36 (1961), and it came into effect on August 24, Heisei 23 (2011).
This law not only sets forth the fundamental principles related to sports but also clarifies the responsibilities of the national and local governments, as well as the roles that sports organizations should fulfill.
Notably, the preamble of this law explicitly declares that “the right to lead a happy and fulfilling life through sports is a right for all people.”

During the legislative process of this law, the multifaceted value of sports was widely recognized, positioning it not merely as a physical activity but as an activity with educational, cultural, and even social significance.
This comprehensive understanding has laid the groundwork for accepting new forms of sports.

Legal Evaluation of eSports

How, then, is eSports positioned within the Japanese Basic Act on Sport, which embodies such principles?
The preamble of this law defines sports as “physical activities, including competitive sports, conducted individually or in groups for the purpose of sound mental and physical development, maintaining and improving health and physical strength, acquiring a sense of mental fulfillment, and fostering self-discipline and other mental qualities.”
Similar to traditional sports, eSports is recognized for its effects in providing mental fulfillment and fostering self-discipline through competitive activities.

Particularly noteworthy are the competitiveness and organizational aspects of eSports.
In many eSports tournaments, fair competition is conducted under clear rules, requiring players to have a high level of concentration and strategic thinking skills.
Additionally, in team-based competitions, eSports contributes to the enhancement of teamwork and communication skills, much like traditional sports.
Although there has not been sufficient discussion on whether eSports qualifies as “sports” under the Japanese Basic Act on Sport at this point, it is considered inappropriate to immediately deny the application of this law to eSports.

Legal Responsibilities and Practical Challenges

Based on such legal evaluations, it is necessary to examine the responsibilities outlined in Article 5 of the Japanese Basic Act on Sport. This article stipulates the following responsibilities for sports organizations:
In Paragraph 1, it calls for proactive efforts in promoting sports while considering the protection of the rights and interests of those who engage in sports, the maintenance and enhancement of physical and mental health, and ensuring safety.
Paragraph 2 mandates the assurance of transparency in business operations and the establishment of voluntary action standards, while Paragraph 3 demands the prompt and proper resolution of disputes related to sports.

These responsibilities are closely related to the specific challenges faced by the e-sports industry. For instance, there are various issues such as the health impacts of prolonged gaming, regulations concerning the participation of minors, methods of prize distribution, and means of resolving contractual disputes. Although these are obligations of effort without penalties, the voluntary judgment and practice of each organization are expected.

Furthermore, unique challenges specific to e-sports include issues related to the copyright and licensing of game titles, ensuring fairness in communication environments during online matches, and preventing cheating. Applying the regulatory and dispute resolution frameworks of traditional sports directly to these challenges can be difficult. Therefore, there is a need to establish a unique regulatory system that considers the personalityistics of e-sports. In doing so, it will be essential to explore solutions that align with the principles of the Japanese Basic Act on Sport while adapting to the new era.

eSports Organizations as Sports Entities

So, which specific organizations will bear these responsibilities?
The Japanese Basic Act on Sport, Article 2, Paragraph 2, defines a “sports organization” as an entity whose primary purpose is to conduct activities for the promotion of sports.
This definition is broad and does not consider the size or profit orientation of the organization.

Specifically, this could include international governing bodies like the International eSports Federation and the Asian eSports Federation, as well as domestic governing bodies like the Japanese eSports Union, and their subsidiary organizations.
Additionally, tournament organizers, team management organizations, and even game development companies could be subject to the Basic Act on Sport as “sports organizations” if their main objective is the promotion of eSports.

Given this broad applicability, operators of eSports organizations are required to recognize the applicability of the Basic Act on Sport towards the goal of promoting eSports through their activities. They must fully understand its fundamental principles and obligations.
Specifically, establishing systems for the protection of players’ rights, ensuring transparent organizational management, and developing dispute resolution systems will be crucial.
Furthermore, through these efforts, it is expected that the social recognition of eSports will be enhanced, leading to its healthy development.