EU resolution calls for investment in video games and esports

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The European Parliament's Committee on Culture and Education (CULT) has unanimously adopted a resolution proposing a vote on whether or not the European Union should develop a long-term strategy in video games. This legislation could fundamentally change the future of the gaming and esports industries on the continent.

CULT asks the enlarged European Parliament to increase the number of video game productions in Europe through more funding. In 2022, the Creative Europe program allocated €6 million to fund video game productions, but CULT said this was insufficient.

It is unclear whether the EU will also consider tax breaks in exchange for companies setting up or expanding gaming companies in the territory. Other countries, such as Australia and Canada, offer these incentives. However, it's clear that if the EU doesn't make itself more hospitable to gaming companies, those companies might seek those incentives elsewhere.

Similarly, CULT argued that the European games industry is chronically struggling with a shortage of talent. They see this as particularly problematic because the games industry depends on innovation. To develop talent, both for the games industry and for Europe as a whole, the resolution insists that video games must be explored as an educational tool.

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Economically, COVID has shown Members of the European Parliament (MEPs) the value of the video game industry. It was the only creative and cultural industry in Europe to grow during the crisis. This resilience and high potential for growth and innovation are why MEPs are calling for increased government support and oversight of the sector. In an uncertain global economy, MEPs are turning to video games to boost employment, GDP and the EU's cultural footprint.

CULT MEPs – including committee rapporteur Laurence Farreng from France – stressed that video games and esports have the potential to “contribute to the soft power of the EU”.

The resolution supported several initiatives aimed at preserving, enhancing and promoting European values, history and diversity. Some of these included the creation of a European Video Game Observatory to provide coordinated data and recommendations for decision-makers, an archive to preserve the most culturally significant games, and the creation of a "video game European" to help consumers support the EU gaming industry.

In addition, the resolution will have far-reaching implications for the esports industry.

For years, esports has struggled to define itself as a sport or not. The resolution will settle the debate on the continent - esports will not be regulated as sports by the EU. MEPs point out that the digital component of esports and the underlying commercial interest of publishers are distinguishing factors of sport. This likely benefits IP owners who will retain greater control over their esports products than they would if they were governed as sports.