On Thursday, September 24, 2020, the Japan eSports Union (hereinafter referred to as "JeSU") announced the establishment of the "JeSU Participation Fee-Collection Competition Guidelines.
The guidelines clarify the scope of participation fee-collecting tournaments that do not fall under the category of "game center operations" under the Entertainment Establishments Control Law, but to be honest, it's a bit confusing, isn't it?
I would like to explain what this means in simple terms.
Please note that this is just a rough explanation!
Is there a problem with events that charge participation fees?
There are two types of e-sports events: those that are free and those that require participants to pay a participation fee.
Offline tournaments that charge a participation fee and are held using arcade games or home video game consoles are considered to be " game center operations," since the participants are in effect paying to play the games.
Conversely, events using PCs, smartphones, and tablets are not subject to "game center operations" as long as the devices can be used for purposes other than gaming, regardless of whether or not there is a participation fee.
JeSU Even so, holding an e-sports tournament requires the preparation of a venue and equipment, as well as a large number of management staff, which can be quite expensive and often cannot be covered by sponsors.
The "JeSU Participation Fee-Collecting Tournament Guidelines" announced this time are for events that are held using arcade games or home video game consoles and charge a fee, but do not fall under the category of "game center operations.
How much can I set a participation fee?
According to the "JeSU Participation Fee-Collecting Tournament Guidelines," the participation fee "must be allocated only to cover the cost of using the venue for the tournament and other expenses required to set up the tournament.
In other words, the participation fee must not be used for any purpose other than to cover the costs of holding the tournament.
However, this is an area that can be left unresolved at any time if you want to.
To prevent this, the maximum number of participants should be set in advance.
The maximum participation fee for one person should be set at an amount equivalent to the cost of the event divided by the maximum number of participants.
JeSU According to the example in the "JeSU Participation Fee-Collecting Tournament Guidelines," if it costs 2 million yen to hold a tournament and the maximum number of participants is set at 1,000
2,000,000÷1,000=2,000
Therefore, the participation fee per participant should not exceed 2,000 yen.
And the set amount is fixed for one event per participant, and it is not allowed to allow a participant to participate again if he/she pays one more time.
However, if multiple game title competitions are held at an event at one venue, it is acceptable to charge a participation fee for each title.
Although we said that the participation fee is fixed, there is no problem in offering a flat discount on the participation fee to those who use the services of the event sponsor or waiving the fee for guest participants.
It is quite complicated.
Even in a tournament where the entry fee has been calculated and set properly like this, there are times when the total entry fee exceeds the cost of the event for some reason.
If that happens, you have to give the money back to the participants, and so on, so that you don't end up in the black on the participation fee.
In addition, it is necessary to clearly state in the event registration guidelines that "the participation fee will be used to cover part of the event set-up costs," and to make this clear as much as possible when advertising the event, so the wording of the registration guidelines and advertising will also need to be reviewed.
This is quite a hassle.
So, why can't we make a profit from the tournament?
If we are not allowed to make a profit from the entry fee, the organizers must wonder what they should use to make a profit.
Since "participation fees" can only be used to cover the costs of the event, there are many things that do not fall under this category.
Sponsorships, advertising revenue, spectator fees that do not involve actual game play, merchandise sales, and other revenue not directly related to game play that can be used to make a profit are not a problem.
That said, there are many ways to make a profit.
In order to hold a paid tournament
If you wish to hold a paid tournament in accordance with the "JeSU Participation Fee-Collecting Tournament Guidelines," you must notify JeSU of the outline of the tournament at least one month prior to the start date of the tournament and receive certification from JeSU.
If the event is properly accredited, it will be allowed to be held as a " JeSU-accredited fee-charging tournament.
JeSU Some events may not be accredited depending on the content of the event, so be sure to follow the guidelines and set up your event properly.
Even once accredited, the accreditation may be revoked if there are any falsehoods in the notification or if there are any violations of the guidelines in the operation of the event.
Follow the rules!
JeSU Once the guidelines are established, there will be people who have various opinions about them.
However, once the guidelines are established, the event must be held in accordance with the guidelines.
It will be a lot of work for the organizers immediately after the establishment of the guidelines, but I think it would be a good idea to first try to hold the event in compliance with the guidelines.
The contents of this article are only a rough outline of the guidelines, so please make sure to check the full text of the "JeSU Participation Fee-Collecting Tournament Guidelines" before holding a fee-charging tournament!
Sorry, this article is only available in Japanese. at the moment.
