In 2021, Stockholm was selected as the host city for the biggest esports event in the world, The International. Unfortunately, due to the ambiguous legal status of esports in Sweden, the organisers eventually moved the event to Romania. With an eye-watering prizepool of $40 million, breaking all viewership records, Stockholm’s loss was Bucharest’s gain.
Esports is a growing phenomenon where individuals or teams compete against each other in competitive videogames. The industry has boomed in the past decade, seeing the rise of professional players and leagues, broadcasting and media rights, educational and work opportunities, and a professional set-up for players. According to statista.com, the market is estimated to be worth $1.98 billion in 2023, with an estimated compound annual growth rate of 21%.
The Maltese economy has always been successful in accessing high-value added sectors, such as remote gaming, financial services, yachting and aviation. The Maltese Government in fact recognised the value of the esports and videogames sector in 2019, with the launch of an Esports and Videogaming Strategy. The objective for this sector is to contribute 1% of GDP by 2030, and the creation of up to 2500 jobs.
The GamingMalta Foundation has been the flagbearer for this vision, investing millions in making this sector visible in Malta, and successfully attracting foreign investment through partnerships with ESL Pro League, PLAYCON and dozens of other initiatives. Some major international names have also set up in Malta, or are in the process of doing so, contributing to a small but rapidly growing local industry which can bring high value jobs to our shores.
Notwithstanding these achievements, Malta lacks a consistent legal infrastructure in respect of esports, hindering the development of a fully fledged ecosystem on the island. In May 2022, the Malta Esports Association published a manifesto indicating the list of necessary improvements needed for the country to become esports-friendly.
One such shortcoming is the absence of a sector specific visa. In several instances already, widely-known international esports competitors from countries such as Turkey and Pakistan were unable to acquire a visa to attend a tournament in Malta. In September 2022, a popular team was disqualified from a major tournament which took place in Malta, as their players’ visa applications were rejected – despite the fact that the competition was supported by the Maltese Government.
In the meantime, the first-mover advantage is slipping away, as other countries have been quicker to react. Countries like the USA, Germany and Dubai have a dedicated visa programme for esports athletes, whilst the legal status of esports has been regularised in countries like South Korea, Russia, China, France, and initiatives are being discussed in the Italian Parliament, the Portuguese Parliament, as well as the European Parliament itself. Meanwhile, Maltese esports clubs and competitors do not currently benefit from any of the myriad of schemes available for sports organisations, and non-EU business seeking to establish in Malta is faced with legal uncertainties and bureaucratic hurdles that regrettably often puts smaller businesses off going all-in on Malta.
It is our firm belief that an Esports Bill, which would establish and consolidate regulation of the industry, is a prerequisite for the sector to reach its full potential and should be prioritised by the current administration. Making esports a significant contributor to the Maltese economy will also require foreign investment, and with so many countries vying for part of the pie, the Maltese offer needs to be attractive, and easy to access. After all, there needs to be a compelling reason for foreign businesses to choose Malta as their base of operations.
Michele Magro and Chris Cachia form part of the Malta Esports Association Executive Committee, holding the roles of President and Treasurer respectively. If you have any question on esports and would like to learn more please contact the Malta Esports Association on [email protected] and check out the Malta Esports Association website at https://esports.org.mt/.