By Jeffrey Levine, JD, PhD, Associate Clinical Professor and Esport Business Program Lead, Drexel University
(Editor’s Note: The following article appeared in Esports and the Law, where Levine is the Academic Editor.)
This past summer, the International Olympic Committee (IOC) made a landmark decision to establish the Olympic Esports Games, with the inaugural 2025 event scheduled to take place in Saudi Arabia. The new event marks the IOC’s most significant step yet in embracing esports after years of experimental ventures, including the Olympic Virtual Series launched in 2021 (Burelli et al., 2024). The move to formalize an esports-specific event reflects the IOC’s strategic push to capture younger audiences, particularly those immersed in digital and virtual competition (IOC, 2023). Another potential decision to embrace esports may be influenced by the fact that newer generations are less interested in traditional Olympic games (Bradish & Burton, 2021). With its increasing viewership, revenue, and cultural impact, esports presents a potential opportunity for the IOC to counteract the stagnation facing the Olympic Movement among younger audiences. As the IOC integrates esports into the Olympic framework, it faces both new opportunities and complex challenges that will shape the future of digital and traditional sports.
Background and Past Challenges
The IOC’s involvement in esports began tentatively in 2018, as the organization explored ways to bridge traditional sports with the digital sphere. Initial events, like the Olympic Virtual Series, featured sports simulations such as baseball, cycling, and rowing, which were more accessible to conventional sports audiences (Burelli et al., 2024). However, these early efforts quickly revealed several challenges to fully integrating esports into the Olympic framework. Esports’ decentralized structure, diverse game genres, and governance inconsistencies across regions and game titles complicated the establishment of standardized rules and the selection of games that could qualify as “Olympic-friendly.” Additionally, the fact that governance authority primarily rests with game developers, rather than a neutral regulatory body, presented a unique challenge for the IOC (Burelli et al., 2024).
Efforts to create global tournaments outside the developers’ direct control, such as the World Cyber Games and EVO, highlighted the difficulties of gaining international traction and sustaining unified esports events. These events require developer licensing and may struggle with inconsistent participation, financial issues, legal discrepancies, and varied appeal across international audiences (Walker, 2016). Without a global governing body comparable to those in traditional sports, regulating and organizing esports on an Olympic scale has remained complex (Shinohara, 2023). For the IOC to integrate esports effectively, it will need a structured framework that respects esports’ unique dynamics while promoting the Olympic Movement’s values. Furthermore, given the diversity of developer perspectives on esports, obtaining the necessary support and licenses from the various game developers who hold intellectual property rights over popular titles adds another layer of difficulty.
Saudi Arabia Partnership and Lessons from Esports World Cup
The IOC’s 12-year partnership with Saudi Arabia’s National Olympic Committee is a critical component of its Olympic Esports Games, providing not just a location for the event but also the stability, resources, and influence necessary to unify stakeholders and establish a structured framework for integrating esports within the Olympic model. This relationship aligns well with Saudi Arabia’s Vision 2030, an ambitious economic diversification plan aiming to reduce the Kingdom’s reliance on oil by heavily investing in sports and entertainment, with esports at the forefront (Dunbar, 2024). Saudi Arabia has demonstrated its commitment to esports through investments in key stakeholders, including the Electronic Sports League, Modern Times Group, and numerous game developers (Tan, 2024).
Hosting the Olympic Esports Games in Saudi Arabia capitalizes on the Kingdom’s rising influence in esports, positioning it as a global center for digital entertainment and granting the IOC access to new markets and revenue streams. This partnership reflects Saudi Arabia’s recent success with the inaugural Esports World Cup, which attracted over 500 million viewers and drew substantial sponsorship support (Fudge, 2024; Fragen, 2024). The event provided a vital financial injection into an industry grappling with an “Esports Winter” of slowed investment and stakeholder consolidation (Ciocchetti, 2024). Saudi Arabia’s involvement has been crucial in revitalizing the sector and fostering an esports tourism economy, solidifying its role as a strategic partner for the IOC (Tan, 2024). For the IOC, this alliance not only enhances its presence in the esports economy but also establishes a foundation for sustainable financial and cultural benefits through Saudi Arabia’s emerging market of gaming enthusiasts and professionals (Hilani, 2024).
Legal and Governance Considerations
Integrating esports into the Olympic framework presents complex legal and governance challenges, especially since esports lacks a centralized governing body. Unlike traditional sports, where entities like FIFA or FIBA establish consistent standards, esports operates within a fragmented ecosystem, with varying rules across games, regions, and publishers. Additionally, due to extensive intellectual property rights, primarily protected by copyright, developers wield significant influence as de facto top stakeholders in the esports space. The IOC will need to carefully navigate these disparities to create a framework that ensures fair play and athlete protection, both of which are essential to upholding Olympism. Key considerations include player contracts, intellectual property rights for game titles, labor and employment protections, and eligibility criteria (Levine, 2024)—all of which must align with Olympic standards (Reuters, 2024)
Game selection introduces another layer of complexity, as the IOC must weigh Olympic values in determining which esports titles to include. Not all popular esports games align with Olympic ideals, particularly those involving realistic violence (Burelli et al., 2024). Instead, the IOC may prioritize games that emphasize skill, strategy, and non-violent competition, fostering inclusivity while avoiding conflicts with Olympism. This approach, however, could exclude major titles like Counter-Strike, Valorant, and League of Legends, whose depictions of violence may be at odds with the Olympic ethos. Establishing transparent governance guidelines, in collaboration with key stakeholders such as developers, will be essential to shape public perception and determine how seamlessly esports can integrate into the Olympic fold.
Conclusion
The establishment of the Olympic Esports Games reflects the IOC’s strategic approach to staying relevant in an evolving sports culture and increasingly digital world. This decision not only brings esports into the Olympic fold but also broadens the Olympic brand’s appeal among younger demographics who are more engaged with digital entertainment. Nevertheless, significant challenges remain, especially in establishing effective governance frameworks, aligning esports practices with Olympic values, and creating a financially sustainable model that garners support from stakeholders, including publishers, teams, and athletes. As the IOC moves forward, addressing these issues will be essential to fostering a positive and inclusive gaming environment within the Olympic Esports Games.
Looking ahead, the Olympic Esports Games have the potential to create new opportunities and renewed enthusiasm within the esports industry. Such an event may also serve as a catalyst for meaningful discussions on establishing governance standards across the esports landscape. With Saudi Arabia positioned as a central esports player, this partnership invites global stakeholders to carefully consider the cultural sensitivities and nuanced dynamics surrounding player rights, governance structures, and broader industry standards that accompany such a collaboration. This strategic alliance with Saudi Arabia offers the IOC a unique opportunity to usher Olympism into a new era, positioning esports as a valuable addition to the Olympic legacy. Whether this ambitious undertaking will succeed, however, remains to be seen.
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