Beyond the screen: Navigating the legal distinctions between video games and esports in Saudi Arabia

As part of its Vision 2030 strategy, the Kingdom of Saudi Arabia has made remarkable progress in developing the video game and esports industries.¹ Through investments estimated at approximately USD300 billion, the Kingdom has accelerated the growth of its gaming ecosystem and positioned itself as a leading global hub for the industry.

A key driver of this transformation is the Public Investment Fund (PIF), which established Savvy Games Group, a video game investment, development, publishing, and esports holding company, to develop a world-class gaming and esports sector within the Kingdom. Other national initiatives have also contributed to this objective. For example, NEOM has partnered with MBC Group to establish advanced gaming hubs and development studios for high-profile video games, further strengthening Saudi Arabia's digital entertainment infrastructure.²

Although the gaming industry is often discussed as a single sector, it comprises two distinct segments: video games and esports. While both are closely connected and share many common characteristics, they differ significantly in terms of purpose, structure, commercial relationships, and legal regulation.

This article examines the key distinctions between video games and esports and the contractual relationships governing each sector, while identifying the principal legal disputes that arise within them, and analysing the regulatory framework applicable in Saudi Arabia.

 

Understanding Video Games and Esports

Video games and esports are closely related because both rely on electronic platforms. Nevertheless, they serve different purposes and operate within distinct commercial and legal frameworks.

Video games are primarily a form of interactive entertainment that enables users to engage with virtual environments. They are played across a variety of platforms, including personal computers, gaming consoles such as PlayStation and Xbox, and mobile devices. Most video games are designed for recreational purposes and may be played individually or socially without any competitive structure.

Esports, by contrast, refers to organised, competitive video gaming. It has been defined as a form of sport in which the primary aspects of competition are facilitated through electronic systems.³ Esports involves professional players or teams competing in structured tournaments and leagues for prizes, sponsorships, rankings, and international recognition. Popular esports titles include Fortnite, Call of Duty, and League of Legends.⁴

Accordingly, while every esports title is a video game, not every video game qualifies as an esport. Single-player games and casual multiplayer games, for example, are generally not regarded as esports because they lack a structured competitive environment.⁵

 

Key Differences Between Video Games and Esports

The most significant distinction lies in their purpose. Video games are primarily intended for entertainment and personal enjoyment, whereas esports is built around organised competition involving professional players, teams, leagues, tournaments, and spectators.

Another important distinction concerns the role of game developers and publishers. Within the esports ecosystem, developers often play an active role beyond creating the game itself. They may organise professional tournaments, regulate competitive play, or license third parties to host official competitions. Some publishers, such as Nintendo, largely permit community-led tournaments, whereas companies such as Riot Games and Activision Blizzard actively manage and operate the professional competitive scene for their games.⁶

By contrast, developers of conventional video games generally focus on designing, developing, and maintaining the game software. They are not ordinarily responsible for organising competitive events or managing professional competitions.

Furthermore, audience engagement differs considerably. Video games are typically played for personal enjoyment, while esports attracts both participants and spectators. Professional competitions are broadcast through online streaming platforms and live events,⁷ creating commercial opportunities through advertising, media rights, sponsorships, and merchandising.

 

Contractual Framework

The contractual relationships governing esports are considerably more complex than those applicable to traditional video games.

Within the esports industry, stakeholders - including players, clubs, tournament organisers, sponsors, publishers, broadcasters, and event organisers - are connected through a network of commercial agreements. These contracts regulate matters such as player compensation, sponsorship rights, intellectual property licensing, image rights, broadcasting rights, merchandising, performance obligations, confidentiality, and dispute resolution.

By comparison, the contractual relationship in the video game industry is generally centred on the End User Licence Agreement (EULA), which governs the relationship between game developers or publishers and players. A EULA defines the player's rights to use the game, establishes restrictions on use, addresses ownership of intellectual property, and limits the developer's liability.

Depending on the commercial model, additional agreements may also be involved, including development agreements, publishing agreements, software licensing agreements, distribution agreements, and intellectual property licensing arrangements.

 

Legal and Regulatory Framework in Saudi Arabia

The esports sector in Saudi Arabia is primarily regulated by the Saudi Esports Federation (SEF), which oversees competitive gaming within the Kingdom.

In 2026, the SEF introduced several regulations aimed at strengthening and organising the esports ecosystem. Among the most significant is the Professional Players Regulation, which governs the legal relationship between esports clubs, professional players, coaches, and the Federation.

The Regulation provides, among other things, that:

• players and coaches must be registered through the Federation's official portal;
• esports clubs must be formally established and operate through licensed commercial entities holding valid commercial registrations;
• standard contractual templates for player contracts and player transfer agreements must be used;
• player salaries must be properly documented and reported to the Federation to ensure contractual transparency; and
• clubs must safeguard players' contractual rights, including ensuring timely payment of salaries. Where a club fails to pay a player's salary without lawful justification, the player may issue a formal notice granting the club at least ten days to remedy the breach before initiating legal proceedings.

Unlike esports, there is no standalone legal framework governing video games. Instead, the sector is regulated through a combination of laws relating to intellectual property, consumer protection, electronic commerce, cybersecurity, personal data protection, and content regulation. Consequently, the legal regulation of video games spans several different areas of law.

 

Legal Issues and Dispute Resolution

The nature of legal disputes differs considerably between the two industries.

Within the video game industry, disputes most commonly arise from intellectual property rights and commercial relationships between developers, publishers, distributors, and users.

Copyright disputes are among the most frequent, involving the unauthorised use of game code, artwork, music, characters, storylines, or other protected creative works. Trademark disputes similarly arise from the unauthorised use of game titles, logos, or other distinctive brand identifiers.⁸

Given the online nature of many modern games, cybersecurity and data protection issues are also increasingly common. These may include unauthorised access to user accounts, theft of personal or financial information, hacking, and fraud involving virtual currencies or in-game assets.⁹

Additionally, video games may become subject to regulatory scrutiny where their content conflicts with applicable local laws, public morality, or Sharia principles.

Esports disputes, on the other hand, are generally more contractual and regulatory in nature. Common categories include:

Disciplinary disputes, involving allegations of cheating, match-fixing, manipulation of results, ethical misconduct, or violations of tournament rules.¹⁰

Eligibility disputes, arising where players fail to satisfy participation requirements relating to age, nationality, residency, or tournament qualifications. For example, while the British Esports Association publishes age guidance for different competitions¹¹, the Saudi Esports Federation generally requires professional players to be at least 18 years of age when signing a professional contract, with participation by players aged 13 and above permitted in certain circumstances subject to parental consent.¹²

Transfer disputes, concerning the movement of professional players between clubs, including contractual obligations, transfer fees, and registration requirements.

Contractual disputes, involving breaches of player contracts, sponsorship agreements, employment obligations, or commercial arrangements.

Commercial and intellectual property disputes, particularly those involving sponsorship agreements, merchandising rights, broadcasting rights, media rights, and licensing arrangements.

Saudi Arabia has established a structured dispute resolution framework for esports matters. Before formal proceedings commence, disputes are referred to the relevant committee within the Saudi Esports Federation for mediation for a minimum period of 14 days. If mediation fails, the dispute proceeds to formal adjudication before the competent committee, which is generally required to issue its decision within 30 days, subject to extension where necessary. The applicable regulations also govern appeal procedures, disciplinary sanctions, and procedural fees.¹³

 

Conclusion

The rapid growth of esports reflects broader developments in technology, digitalisation, and the global digital economy. As part of Vision 2030, Saudi Arabia has identified gaming and esports as strategic sectors capable of supporting economic diversification and establishing the Kingdom as an international centre for digital entertainment.

Although video games and esports share a common technological foundation, they differ significantly in their commercial models, contractual structures, regulatory frameworks, and legal risks. Video games primarily involve relationships between developers and consumers, while esports encompasses a broader ecosystem of professional players, clubs, tournament organisers, sponsors, broadcasters, and governing bodies.

Recognising these distinctions is essential for developers, investors, legal practitioners, and policymakers operating within Saudi Arabia's rapidly expanding gaming industry. As the sector continues to mature, its legal and regulatory framework will undoubtedly evolve alongside technological innovation and the increasing commercialisation of competitive gaming.

 

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¹Saudi Vision 2030 - National Gaming and Esports Strategy
²Exclusive: Saudi Arabia's Strategic Shift into the Gaming Industry
³What is eSports and Why Do People Watch It?
⁴Esports Part 1: What Are Esports?
⁷Governing Esports: Public Policy, Regulation and the Law
⁸Resolving Video Games and eSports Disputes: How Can WIPO's Alternative Dispute Resolution Options Help?
⁹Cybersecurity Challenges in the Gaming Industry: A Comprehensive Overview
¹⁰Esports law & Practice book edited by Leonid Shmatenko, Oleksandr Volkov, Rodolphe Ruffie-Farrugia
¹¹Pegi-infographic_revised_Aug-2019.pdf
¹² layht_alahtraf_Professionalism_Regulation_2026_compressed_14e5be4b9c.pdf
¹³ layht_alahtraf_Professionalism_Regulation_2026_compressed_14e5be4b9c.pdf