The advertising practices of esports organisations raise ethical concerns. The Esports Advocate (TEA) team had presented the results of its investigation into advertising practices during the 2024 Esports World Cup (EWC). It provides examples of advertising by esports competition partners on social media that violate the advertising regulations of certain countries.
Forty esports organisations from around the world were selected to participate in the EWC Club Partner Program 2025. With a budget of $20 million, the programme provided each partner organisation with up to $1 million to expand their brands and increase their global audience through content campaigns before and during the event.
Lack of advertising identifiers
In May 2024, TEA conducted an investigation into violations of advertising disclosure laws by esports organisations participating in the EWC partnership programme. Analysts found that several jurisdictions had conducted social media promotions without proper labelling. All of them contained financial incentives.
The TEA investigation includes consultations with regulatory authorities, including the US Federal Trade Commission (FTC), the UK Advertising Standards Authority, the Canadian Competition Bureau, the European Advertising Standards Alliance and the European Commission. Additionally, analysts consulted with Eversheds Sutherland senior lawyer Leonid Shmatenko regarding German and Swiss law. All of them confirmed the violation: the posts of esports organisations do not contain advertising identifiers.
TEA contacted the Esports World Cup Foundation (EWCF) for comment on the potential violations but did not receive a response. Since the first event in 2024, several sources have confirmed that the absence of identifiers was a deliberate strategy on the part of the organisers. However, the EWCF and its partner organisations were not subject to fines or sanctions for violating advertising legislation during 2024.
Non-disparagement agreement
Posts by the EWC, its participants and organisers mostly appear to be authentic rather than sponsored, writes James Fudge in The Fudge Retort newsletter. He points out that, according to the law, stakeholders in esports must prioritise transparency in their monetisation strategies. ‘Unfortunately, ethical expectations often conflict with commercial interests. Teams either follow the organisers’ instructions and do not disclose information, or they do so voluntarily to maximise their financial gains,’ explains Fudge.
It is worth noting that the contracts of partners, players, coaches and staff in the EWCF infrastructure contain non-disparagement agreements. These ensure that public communications reflect only positive information about the organisation.
Ethical context
Experts predict that the situation with advertising law compliance during EWC 2025 will remain unchanged. Competition partners will continue to demonstrate a positive attitude despite alarming human rights issues in Saudi Arabia. While promoting esports, Saudi Arabia continues to practise capital punishment, imprison political activists and criminalise LGBTQ+ people.
Direct state ownership places the Saudi-backed Esports World Cup under special scrutiny. Critics point to the phenomenon of ‘sportwashing’ – the use of entertainment to distract attention from human rights violations. International human rights organisations, such as Amnesty International and Human Rights Watch, raised these issues.
State interests in EWC 2025
EWC 2025 is a seven-week multi-disciplinary competition held in Riyadh, Saudi Arabia, with a prize pool of over $70 million. It is funded by the Saudi Public Investment Fund and organised by ESL FACEIT Group, owned by the state-owned Savvy Games Group. The tournament will run from 7 July to 24 August and will conclude with the New Global Sports Conference (NGSC 2025) at the Four Seasons Hotel.
Last week, the EWCF unveiled a new platform called Fantasy at the 2025 Esports World Cup. This app will enable fans to make predictions, develop strategies, and compete in a tournament with a $200,000 prize pool. The launch contributes to the expansion of the global fan experience during EWC 2025, the largest esports event to date.
This article was first published in Russian on 21 July 2025.
