Riot Games Introduces Arbitration System for EMEA Esports Disputes

Riot Games has launched a new arbitration system to resolve disputes in the esports ecosystem across Europe, the Middle East, and Africa (EMEA). Targeted at players, coaches, and teams in League of Legends (LOL) and Valorant, the system addresses issues like unpaid salaries, bonuses, prize money, and transfer disputes. Developed with Martens Rechtsanwälte, the platform operates independently, basing decisions on fairness (“ex aequo et bono”) rather than rigid legal frameworks. Riot’s Head of Esports for EMEA, Alberto Guerrero, emphasized the system’s intent to bolster professionalism and integrity in esports, drawing inspiration from arbitration mechanisms in traditional sports like FIFA.

The arbitration process is overseen by 14 expert arbitrators in sports law, with Martens Rechtsanwälte ensuring neutrality. It is designed for affordability and efficiency, with administrative fees ranging from €500 to €4,000 and arbitrator fees from €1,000 to €5,000. Riot has also established a legal aid fund, though details on its scope remain vague. The system simplifies procedures, typically avoiding hearings and limiting submissions to one per party to expedite resolutions.

However, the system is being criticized on legal and ethical grounds. Concerns about compliance with EU competition laws, particularly Articles 101 and 102 of the TFEU, have emerged. Critics argue that Riot’s closed pool of arbitrators and dominant role in esports could limit participants’ choices and suppress competition, echoing issues raised in the International Skating Union case. Additionally, the absence of published procedural rules raises transparency concerns.

Despite these challenges, Riot’s arbitration system represents a significant step forward in esports governance. Addressing common issues like contractual instability and promoting accountability has the potential to raise standards of professionalism and transparency across the industry. If successful, this initiative could serve as a model for other organizations and drive broader reforms in the rapidly evolving world of esports.