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Japanese Ban on Esports Lifted May Lead to Industry Growth

by | Feb 19, 2018 | News, News Section, Videogames

Japanese Ban on Esports Lifted May Lead to Industry Growth

by | Feb 19, 2018 | News, News Section, Videogames

Japan has always had interesting laws regarding the monetization of games. In addition to normal forms of gambling – such as the fascinating work-around for how players get money from pachinko – Japan has always been rather strict with esports. The Japanese government previously considering earning money in an esports tournament to be another form of gambling, but that has all changed. And it might mean huge things for esports and Japan.

league of legends rampage

This is huge news for teams like League of Legends Rampage.

Following esports explosion in popularity, Japan formed the Japanese Esports Union (or JeSU), to help grow, legalize, and expand the reach of esports. Among their first duties was allowing esports players to acquire licenses to legitimize prize pools from playing in esports tournaments. Though it hasn’t even been a month since the changes, major esports tournaments are already being organized for Japan, some with prize pools as large as $300,000. Unlike other regions, it has been nigh impossible for players to earn a living as a professional in esports, but this changes all of that.

This is not just big news for the players, though, but for video game companies as well. There’s a lot of money to be made in esports, like in the esports arenas coming to Las Vegas or the huge arena Blizzard is build in Los Angeles. Even outside of attractions and events, there are piles of money to be found in merchandising, advertising, and in expanding esports to a wider audience. After all, It’s estimated that by the year 2020, the global esports market will be worth around $5 billion, which is enough money to change a lot of laws. An increase in the competitive scene in Japan could also finally see them rising to compete with the other powerhouse regions like South Korea and China.

Japan’s legalization of esports also comes at a particularly well-timed moment in history. Since last year, the Olympic Committee has been tossing around the idea of including esports into their competitions and especially into Olympics in  2024. This is especially relevant because Japan is holding the 2020 Olympics, and if any region can nudge the committee in the direction of gaming, it will be Japan. Though it’s unlikely we’ll see any sports make it in just two years – training and organization for Olympic sports takes far too long – we can be sure that it will have an influence for years to come.

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Don’t forget to check out some of our other weekly pieces, The LoL Weekly Preview, Recap and Highlight, as well as something I’m Forgetting and Week in Review.

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