Success with a gaming arena in Italy: 5 legal aspects to consider

Lan parties

The concept of gaming arena is an evolution of the famous LAN parties. It was the '90s, and the gaming world was in its infancy, a time far removed from what we're accustomed to today. With the release of games that allowed players to challenge each other and keep score on centralized servers, groups of people gathered to connect their PCs and compete. Thus, the so-called LAN parties were born, video gaming events where participants gather to play multiplayer games using a Local Area Network (LAN).

With the rise of the gaming market and e-sports, and the exponential growth of players, the world of LAN parties has evolved, giving rise to the first venues that provide high-performance console units, gaming simulators, and other gaming devices (i.e. gaming arena).

Let's then consider some aspects to take into account if you decide to open such business in Italy.

Legal Structure of a gaming arena

One of the first decisions to make concerns the legal structure of the business that will manage the arena. In Italy, common options include establishing a limited liability company (S.r.l.) or a joint-stock company (S.p.A.). The choice of structure will influence taxation, personal liability of the owners, and other legal matters.

One of the classic services offered by gaming arena is the organization of tournaments. Given the lack of specific regulations for e-sports and the complexities of prize event regulations, a non-profit sports association (ASD) is usually established, typically associated with sports bodies, where possible, such as CONI.

Authorizaton to operate

Managing a gaming arena and employing gaming devices (such as simulators, etc.), may require obtaining permissions from regulatory authorities.

The issue gained particular notoriety during the so-called LAN gate in 2022. On that occasion, some operators were sanctioned for violating the regulations of the Consolidated Law on Public Security (TULPS) on the basis of lacking the necessary authorizations and approvals for the devices used.

In 2023, we are still awaiting specific legislation for the e-sports sector. However, the Customs and Monopolies Agency has identified a temporary solution in the legislation on traveling shows. Therefore, considering that the currently applicable rules are inadequate and that the legislation is still being defined, it is particularly important to consult legal experts in the field to determine the need for any authorizations and the related procedures.

Intellectual Property

Managers of gaming arena typically needs to install video games on their hardware (computers, consoles, gaming simulators, etc.). Though, video games are the intellectual property of third parties, usually software houses and publishers who license them for use.

In order to avoid violations of third parties' intellectual property, it will be necessary for the operator to ensure obtaining the necessary licenses to provide customers with the video games.

Tournaments organization

Typically, within the activities carried out by gaming arena, there is also the organization of tournaments. In Italy, this matter becomes particularly delicate if prizes are awarded to the tournament winners. In addition to a general prohibition on the distribution of cash prizes, other rules and formalities may be necessary if the prizes distributed are not of minimal value (such as small gadgets).

In aggiunta l’organizzazione di un torneo basato su un videogioco comporta un utilizzo dell’opera dell’ingegno altrui (i.e. del publisher) appunto ai fini del torneo. A tal proposito è pertanto necessario ottenere dal titolare del diritto di proprietà intellettuale (i.e. il publisher) la licenza di utilizzo del gioco e relativo brand (e.g. marchio) per organizzare e promuovere il torneo.

Finally, for the organization of the tournament, the legal provisions on consumer protection require the drafting of clear regulations and rules.

Data protection

Within the context of activities related to gaming and esport, personal data of customers may be collected. This occurs, for example, when participating in tournaments, purchasing membership cards, or in other situations where customers are required to provide their information for identification.

È quindi importante che il gestore della sala LAN adotti un comportamento conforme alla normativa in materia di protezione dei dati personali (ad esempio fornendo una corretta informativa privacy e svolgendo un corretto trattamento dei dati raccolti).

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