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2019 Esports and the Law 1 (2019)

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Esports and the Law


Is My Loot Box Legal?


By Anthony J. Dreyer and David
Lamb, of Skadden, Arps, Slate, Mea-
gher & Flom LLP

    -he Year 2019 saw an appreciable in-
 crease in scrutiny directed toward the
 use ofloot boxes-in-game rewards (often
 randomized) that players can purchasewhile
 playing a video game. Both domestically
 and internationally, legislatures, regulatory
 agencies, and private groups took up the
 issue of what, if any, legal concerns loot
 boxes present. However, while discussions
 concerning loot boxes were certainly more
 prominent in 2019, they are just the latest
 in a long line of legislative and administra-
 tive reactions to this growing trend in video
 games. Although, to date, most attempts to
 ban or regulate loot boxes have been un-
 successful, the increasing government (and


private) scrutiny of this practice deserves
the attention of anyone with a connection
to the video game industry.
  The Rise of the Loot Box
  The term loot box generally refers to
any mechanism allowing players to obtain
a set of unknown, virtual items for use in
a game. A loot box could be a booster pack
in a collectible card game, a weapons crate
in a first-person shooter, or a llama-shaped
pifiata in a battle royale game. In most,
though not all, instances of loot boxes,
the available items have varying degrees of
rarity, with more desirable items appearing
less frequently.
   Loot boxes and other micro-transaction
mechanics have grown increasingly popular
in the last several years, paralleling both
           See IS MY LOOT on Page 4


Senior Attorney at Activision Blizzard Shares Insights about

Esports Industry


By Alex Beyrent, GWU 2L

     obert Forbes didn't just fall into his
     position as Senior Legal Director
of esports Leagues at Activision Blizzard.
   He gained valuable experience at vari-
ous points across the sports law landscape,
ensuring that the company behind the
creation of iconic franchises such as Call of
Duty, Overwatch, and World ofWarcraft,
would get a well-rounded sports lawyer
who could help the company build out
its leadership position within the esports
industry.


   Forbes' professional experience began
shortly after graduating from the Univer-
sity of Virginia School of Law. First, he
joined a law firm known for its work in
the professional sports industry, Proskauer.
From there, he went on to work as V.P.
of Legal and Government Affairs for the
Washington Redskins.
  When the opportunity came up at Ac-
tivision Blizzard, he was a little skeptical.
His experience with video games up to
that point had been fairly casual, largely
limited to playing a lot of Tony Hawk's
Pro Skater in college, but he was open to


expanding his horizons.
  And it has paid off. At Activision
Blizzard, Forbes would have the unique
opportunity to get in on the ground floor
and help shape a brand-new professional
sports league, one that he realized had real
staying power. Since accepting the posi-
tion, he has helped negotiate the sales of
20 Overwatch League teams and 12 Call
of Duty League teams. These leagues have
grown into worldwide spectacles. Their
competitions are attended by thousands
     See SENIOR ATTORNEY Page 11


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