News and developments
The Rise of E-Sports in Thailand and Opportunities for Investors
Overview
E-sports has become popular in Thailand over the past two decades. The first e-sports tournament in Thailand was held in 2001, and apart from the aspect of professional sports and athletes, the popularity of e-sports also creates an ecosystem of businesses that revolve around it, including:
According to the research on Thailand's digital content business, undertaken by the Digital Economy Promotion Agency of Thailand (DEPA), the gaming industry in Thailand was valued at approximately 34 billion baht in 2023, and it is estimated that the digital content business in general will continue to grow at the rate of 4 percent in the next few years.
Legal status of e-sports under Thai law
Despite its popularity and success in Thailand, e-sports was not recognised as a professional sport until 2021. At that time, the Professional Sports Commission of Thailand ("Sports Commission") officially recognised and announced e-sports as a professional sport, similar to other traditional sports like football, golf, and tennis. Such official recognition provides concrete protection and legal obligations to businesses and stakeholders within the industry.
Now, under the current Notification of Professional Sports Commission, re: Designation of Professional Sports B.E. 2566 (2023), e-sports are finally recognised as a professional sport under the Promotion of Professional Sports Act B.E. 2556 (2013) ("Professional Sports Act"). Protection and legal obligations that apply to traditional professional sports shall be applied to stakeholders in the e-sports industry.
Below are certain key protections and legal obligations for stakeholders within the e-sports industry:
1. Professional e-sports clubs and professional e-sports associations
(1) Entering into a contract with each of their e-sports athletes and staff, which must contain the minimum required terms (e.g., normal working hours, annual leave, and termination of employment).
(2) Issuing a code of conduct for their e-sports athletes or staff. The code must include punishment for any violations.
(3) Providing assurances that e-sports athletes, staff, fans or attendees of events/competitions will act in an orderly manner throughout the competition at the exhibition ground.
2. Professional e-sports athletes and staff
3. Organising e-sports competitions
4. Match fixing of e-sports
From the early days of national competitions, to achieving international success, e-sports in Thailand has fostered an ecosystem encompassing businesses such as media, advertising and professional clubs. Legal recognition and regulatory frameworks have further solidified the status of e-sports as a professional sport, ensuring protections and obligations for professional athletes similar to other traditional sports.
Based on the Thailand Investment Promotion Strategy 2023 – 2027, e-sports is presented by the Board of Investment (BOI) as one of the new areas with potential for investment opportunities in Thailand in the area of creative industry, such as software development. A qualified software development project could receive up to eight years of corporate income tax exemption privilege from the BOI.
As the industry continues to expand, Thailand remains a significant player on the global e-sports stage, with promising prospects for future growth and success.
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