Law probably isn’t the first thing that comes to mind when thinking about entertainment. The dry complexities of the legal world don’t mesh well with the realm of pop stars, red carpets, and sold-out tours. It also seems leagues away from hits like video games, whether related to game streaming, competitive play, or social games.
But the law is constantly working behind the scenes to protect consumers—and especially gamers. From a legal perspective, red tape signifies that a sector is being regulated. That regulation helps protect developers, gamers, and all other entities involved in the creation, sales, and use of video games.
Here’s a closer look at how that works.
For Gamers Great & Small
Video games span a great range. For example, you might not consider a game like online poker to be a traditional video game, but it’s legally treated like any other gaming category. In fact, it’s a highly unique case due to its global popularity. Players from around the world tend to focus on virtual poker platforms in order to develop their skills.
Many seek to advance to satellite tournaments, which can take place online or in person. The top performers from these tournaments earn places at more competitive events—all the way up to a professional level. Viewed in this way, poker is comparable to an eSports league.
Legally speaking, eSports is yet another highly complex case. Not only do leagues span international borders, but there are also contracts, salary caps, age restrictions, and so much more to consider. To protect players and successfully regulate the industry, laws have started to focus on a few main concerns: geolocation, personal and financial data, and advertising.
Geo Location Verification
Gaming markets are regulated on a national or regional level. That means that almost every gaming company uses geo-verification services to make sure that players are located in the right area. This can help protect them from fake or predatory sites that are looking to work around local laws.
Similarly, it also helps gaming companies keep their player pools local and on specific servers. Both examples of poker and competitive eSports rely on geo-specific servers to maintain and regulate player pools.
Personal Data Collection
Data collection is a hot topic in the world of gaming. Developers want access to granular player data in order to inform what sorts of gaming interests they have—which they’ll use to create more personalized games and suggestions. But every country (or region) has its own approach to data collection.
Legally, games must respect these data collection laws wherever players are located; this also highlights the importance of geolocation. Some countries, like the US, have more lenient data collection laws. The EU, by contrast, has stricter regulations.
Financial Data Protection
Along with personal data, gaming companies must protect players (and themselves) from hacking. Because games are fully digitized, players must pay for them using digital wallets. Many games also involve in-game stores, which means player financial data is even more at risk to hackers and other bad actors.
Many game companies employ third-party cybersecurity groups to prevent the collection of financial data. In certain parts of the world, companies might even be legally required to employ third-party groups. Not only does it help ensure that player data is protected, but it also signals that companies are following their due diligence.
Advertising Regulations
Many games rely on advertising to make money. If you’ve played a free-to-play game, you’ve certainly encountered these types of in-game ads. Unsurprisingly, these are becoming subject to more stringent regulations. These regulations are focused on the age of gamers, the types of ads allowed, and how they’re presented. Once again, they change according to country and region.
The idea here is to protect players from being exposed to certain types of ads, which may be inappropriate or misleading. Similarly, there are laws designed to protect players from how game studios advertise their latest releases. These are also focused on false advertising and explicit versus implicit promises.
