Legal and Regulatory Approval

While the esports market has been growing at a significant pace, regulations have not been able to keep up with the increasing nuance. However, due to the familiarity of the standardised framework that Division6ix will bring, it may be easier to determine which laws apply the business practices of the organisation. For example, Gambling, sports, prize promotion, advertising, and data privacy laws may be considered. The laws and regulations may also apply differently depending on a number of questions, such as whether the activities are being carried out online or in a venue of some sort; whether the nation in which the activity is taking place in recognised esports as an official sport; what is the scope of potential prize options; what NFTs can be bought or sold on the Galaxy market; what the technical requirements are; and what the actual risks are from a technological, operational, and public opinion perspective.

An understanding of the laws that could apply to the various stakeholders within the industry is also crucial for the legal success of Division6ix. For example, event organisers, media companies, online platforms, sponsors, video game publishers, as well as the players and viewers themselves. Each of these stakeholders, regardless of their position, want to maximise their profits, exploitation rights, and utility. Simply the corporate structure of Division6ix will need to be moulded in accordance with the laws and regulations of the various regions it plans to expand towards. Contracts for players will also need to be designed to accommodate for various legal scenarios and positions, including the process of contracting with major streaming sites like YouTube and Twitch in the event of an extreme influx of viewership for any player, team, organisation, or event.

According to Esports Laws of the World by DLA PIPER, the applicable governing laws in the United Kingdom are as follows:

Gambling Laws

· Gambling Act 2005 s6 – Gaming

· Gambling Act 2005 s9 – Betting

· Gambling Act 2005 s11/339/Schedule 1 – Prize Competitions

· Gambling Act 2005 s12 – Pool Betting

· Gambling Act 2005 s13 – Betting Intermediary

· Gambling Act 2005 s14 – Lottery

· Gambling Act 2005 s16-18 – Cross-Category Activities

The Gambling Act largely applies to Great Britain Only, separate rules may be held to apply in Northern Ireland. The Government has the power to provide that a particular activity is to be treated as a sport outside the definition of gaming. No such designation has been made in respect of esports.

Prize Promotion Regulations

· Gambling Act 2005 s11/339/Schedule 1 – Prize Competitions

Advertisement of Esports Related Activities

· UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code)

· UK Code of Broadcast Advertising (BCAP Code)

· Consumer Protection from Unfair Trading Regulations 2008

Intellectual Property Rights

· Copyright, Designs and Patents Act 1988

· Trade Marks Act 1994