Esports has been recognized as an official sport in Ukraine. What will change?
Author: Yura Lazebnikov, Managing Partner at TECHIIA holding and WePlay Esports media holding
On September 7, the Ministry of Youth and Sports of Ukraine registered esports as an official sport. “At last!” some people claimed. Others added, “Haha, no longer are they called skinny gamers, but candidates for the master of esports.” Still, others ask quite a reasonable question: “And now what?” It is unclear whether giving the industry an official status brings new opportunities or new challenges to it. What will change for players, esports companies, and, in general, for every Ukrainian?
On Good Things
For a year and a half, the Ukrainian Esports Federation has been seeking official status for esports from the Ministry of Sports. In short, now we have an open door to cooperate with the state. First of all, in terms of procedures and documents.
The Federation still has a lot of work on the normative side. For example, in the legal concept of “esports,” there is no division into specific disciplines yet. But already several advantages are apparent even now.
Support
Let’s look at the 49th article of the Constitution and see: “The state cares about the development of the physical culture and sports …”
To understand what has changed, look at the situation from the perspective of an ordinary official from the city administration, Petro Ivanenko. The organizer of an esports tournament comes to Petro with a request to hold an event at the state site. Previously, the wedding planner or any activist who fights for plants’ rights could contact Petro with similar requests. From the law perspective, Petro Ivanenko did not see any difference among them. And now that esports is officially recognized, the official directly contributes to the development of sports in the country.
Dota 2 online tournaments will now be considered a sporting event rather than a niche hobby. Instead of sending the applicant through many instances, Petro Ivanenko will refer to a specific regulation. Renting and equipping sites for esports companies will become much more transparent.
The same goes for the construction of esports arenas. It’s one thing to get permission from Petro Ivanenko for a facility where people “will just play on computers,” but a whole other thing to do it for the arena and development of esports in Ukraine.
“What about the state budget? Do esports hope to get a share of it?” skeptics will ask. I would take the responsibility to answer on behalf of all my colleagues; we do not need budget money. Esports players and the industry have always developed through private initiatives. Knowing the problems of the Ukrainian budget, most likely, this will continue to be so. But now, an additional window of opportunity opens up.
If the state sees potential in esports, government grants, programs for the development of esports in schools and universities, and individual specialties and professions may appear in the future. Let it be 0.1% of all money in the industry. What if a small CS:GO talent from the suburbs will get a chance for a championship? The state will then proudly say: “We helped.”
In the end, we also once only fantasized about the state fund of startups. And this year, the first projects have already received the money.
Visas
On this one, WePlay Esports and other tournament organizers have high expectations. Participants of the international competitions need visas to enter the country. For example, in the United States, esportsmen, coaches, and team members traveling to a tournament can apply for a sports visa. If you play League of Legends, then you are considered an athlete. This greatly simplifies contacts with customs.
Ukraine accepts players from Europe, the USA, and some Asian countries without visas. But talented esportsmen come from all over the world, and this is not always easy.
Just recently, we were solving the problem of how to quickly and without unnecessary bureaucracy, bring a female commentator from Jordan to a tournament in Ukraine. COVID and non-working embassies imposed additional complications. As in the States, if we had visa rules, we could indicate her as a sports commentator, and not an abstract person for an event incomprehensible to the state machine.
A similar situation is with the guys who come to Ukraine to train or completely move to local teams. Simplified entry is a bonus factor of the country’s attractiveness for esportsmen. It is logical for the state to take such a step after an official recognition.
Money
Who benefits from the official status of esports?
The chain starts with the esports business. Due to regulatory simplifications, we will save time, nerves, and organize large-scale tournaments in Ukraine to attract the entire esports world to the screens. We expect commercial sponsors to be more willing to enter the industry as an official sport. Local and foreign media will be more active in covering the competition. And, of course, new jobs in an emerging industry.
This is where the benefits are just getting started. A good esports tournament gives a city and country the same benefits as Eurovision or the football championship finals.
Allied industries instantly get on board. Advertising and event agencies, creators and sellers of merchandise and paraphernalia, and tech retails.
And do not forget that the participants and spectators of the tournaments are tourists. They will buy air tickets, go to restaurants, coffee shops, and museums, rent accommodation, call a taxi, etc.. Even burger sellers near the tournament venue will be able to earn many times more.
The state will receive direct taxes from the esports business and indirect taxes from visitors. Everyone will work. So Ukraine can easily monetize “children sitting at their computers.”
On the doubtful, but so far improbable
There can be a risk to the official status of esports. Its name is overregulation. Many simplifications for the industry can be crossed out by opaque licenses, unnecessary regulations, and other bureaucracy.
Currently, I am sure that this risk is minimal. Based on how the Ministry of Sports and the Ministry of Digital Science helped the Ukrainian Esports Federation with registration, we can conclude that the state is interested in working with esports with minimal delays and maximum support. Industry players like WePlay Esports, for example, and streamers and influencers are the strongest competencies that the ministry can rely on.
Ukraine is the most profitable location between Europe and Asia. We have big venues and a lot of esports talents. It is simply nonsense for us not to become an industry leader. We only need maximum freedom so that we can attract people from all over the world here.
On those who will always be there
And finally, with regards to the statement that “it would be better if these esportsmen went to play outside.”
First, kids and adults still choose what to spend their time on themselves. Talents are different; someone perfectly performs physical exercises, hits a heavy jab, and shoots well in CS:GO. Now you can make money on all this, and at the same time, popularize the whole direction, city, and country.
Secondly, esports is not a replacement for powerlifting, football, or chess. This is an independent kind of competition of human potential. The winner is not the one with a more powerful computer; technical lags in competitions are minimized. As in football and biathlon, in esports, human reaction, teamwork, accuracy, and decision-making speed are important. Let it happen on the CS:GO map, and not on the pitch or snow.
Once upon a time, people giggled at plastic cards. Why are they needed if there is proper money? Or when other people recently were claiming, “Eh, it would be better if I bought myself five bitcoins at 8 cents instead of an apartment in 2010.”
It looks like it will be the same with esports. Reading the news about esports champions, many have probably thought more than once, “Why did I listen to my mom and quit playing Dota 2?”
You can also read this article in Russian at AIN.
