Emerging Legal Trends in the Gaming Industry for 2023

A year ago, predictions were made on legal trends for 2022. It's now time to reflect on the accuracy of those predictions and make new ones for 2023. One of the key topics predicted for 2022 was the Metaverse, which was expected to raise numerous legal questions. Although the Metaverse made headlines in 2022, it didn't quite live up to the hype, partly due to underwhelming user experiences and lackluster presentations. Despite this, the EU Commission launched a plan to thrive in the Metaverse and established its own presence, but with limited public engagement. The big players in the Metaverse have not given up on their vision, and with the Digital Services Act (DSA) coming into effect, legal challenges are expected to persist. The DSA aims to create an environment where consumer safety, access, and interoperability are paramount, which may pose difficulties for the Metaverse. Another topic predicted for 2022 was the integration of NFTs into games, which was expected to face challenges. Indeed, many publishers have struggled to successfully integrate NFTs, and the concept has been marred by controversies, scams, and regulatory issues. However, a new NFT ecosystem is emerging, focusing on collectible card games and sandbox environments, which may provide a safer and more appealing experience for players. As for what will happen in 2023, many investors in tokenized gaming will likely face significant losses, but some may reap substantial rewards. Successful tokenized games will attract regulatory scrutiny, and taxation will become a crucial challenge. The Italian tax authority has already affirmed that staking crypto-assets is not tax-exempt, and similar regulations may emerge in other jurisdictions. Games companies must also revise their general terms and conditions to comply with the EU's New Deal for Consumers, which entails significant changes to consumer protection law. Enforcement activities are expected to increase in 2023, with consumer protection agencies preparing to crack down on non-compliant companies. The Digital Services Act will impose new requirements for online platforms, including transparency, accountability, and protection of minors. IP disputes will remain a top trend, with cloning and copycat games being a significant concern. The cases of Riot Games vs Moonton, Riot Games vs NetEase, and Bungie vs AimJunkies demonstrate the importance of IP protection in the gaming industry. Antitrust laws are becoming stricter, and the Digital Markets Act will limit the market power of gatekeepers like Google, Apple, and Facebook. The Microsoft/Activision Blizzard merger will be a significant test case for antitrust law in the gaming industry. Online interaction risks, such as toxic behavior and cyberbullying, will continue to be a major concern, with regulators taking action against games companies that fail to address these issues. The concept of 'paying with data' will become more prominent, with enforcement activities expected to increase in 2023. Games companies must ensure they are transparent and fair in their data collection and usage practices. Finally, the increasing use of artificial intelligence in game development will raise important questions about copyright law, ownership, and artist protection. The loot box discussion will persist, and Esports will continue to grow, with new legal challenges emerging, such as visa issues, tournament rules, and player protection.