Esports World Cup Partners Continue to Sidestep Advertising Disclosure Rules

Amid regulatory silence and inaction, esports organizations benefit from opaque social media practices, raising ethical concerns.

Jul 18, 2025

Image credit: Esports World Cup Foundation

In May 2024, The Esports Advocate (TEA) investigated whether esports organizations participating in the 2024 Esports World Cup Partner Program were violating advertising disclosure laws in multiple jurisdictions by not transparently labeling financially incentivized social media promotions.

TEA consulted regulatory bodies including the U.S. Federal Trade Commission (FTC), UK’s Advertising Standards Authority, Canada’s Competition Bureau, the European Advertising Standards Alliance, and the EU’s European Commission, as well as Eversheds Sutherland Senior Associate Leonid Shmatenko on German and Swiss regulations. The consensus was clear: by not marking posts with identifiers such as “#ad,” these esports organizations were likely breaching online advertising standards.

At the time, TEA contacted the Esports World Cup Foundation (EWCF) for comment regarding potential violations, but received no response.

Since the inaugural event in 2024, several sources have confirmed to TEA that the lack of disclosures was an intentional strategy by the organizers. This approach appears to have paid off, as no partnered organizations or the EWCF faced fines or sanctions for these omissions throughout 2024.

Proponents of the Esports World Cup might argue “no harm, no foul.” After all, if violations occurred, wouldn’t regulators have intervened by now?

The Organic Illusion

However, perception matters greatly. The Esports World Cup, its participants, and its organizers benefit from posts that appear authentic rather than sponsored. Tagging every promotional post with “#ad” risks appearing insincere or forced. While some posts may genuinely reflect a team’s organic enthusiasm, it is difficult to justify treating every promotional post as authentic, given clear financial incentives to increase social media following and promote the Esports World Cup.

Whether or not this practice violates explicit advertising laws, esports stakeholders ideally should prioritize transparency in their monetization strategies. Unfortunately, ethical expectations often clash with commercial interests. Either teams are following organizer instructions to omit disclosures or willingly do so to maximize their financial gains from participating.

Further complicating transparency is the non-disparagement agreement embedded in contracts for partners, players, coaches, and public-facing personnel working with EWCF. Such agreements ensure that only positive narratives dominate public discourse.

Ethical Implications and Sportswashing

This year is unlikely to differ. Partners benefiting from Saudi investment are expected to continue projecting positivity, despite troubling human rights issues in Saudi Arabia. Notably, while the EWC events unfold, Saudi Arabia continues controversial practices, including executions (345 in 2024, with over 180 so far in 2025), imprisonment of political activists like Manahel al-Otaibi, and criminalization of LGBTQ+ identities.

Critics argue this constitutes “sportswashing”—using entertainment to divert attention from human rights abuses. International watchdog groups such as Amnesty International and Human Rights Watch have repeatedly raised these concerns.

Some may counter by highlighting domestic issues in other countries, including the United States’ immigration policies, mass incarceration, military support for the war in Gaza, and capital punishment. However, the critical distinction is governmental ownership. The U.S. government does not directly own esports enterprises such as the ESL FACEIT Group. Similarly, while the Chinese government exercises significant influence over companies like Tencent and TJ Sports, it does not officially own them. Direct governmental ownership places the Saudi-backed Esports World Cup uniquely under scrutiny.

About the Esports World Cup

The 2025 Esports World Cup is a seven-week multi-title competition held in Riyadh, Saudi Arabia, featuring a prize pool exceeding $70 million USD. It’s funded by Saudi Arabia’s Public Investment Fund and operated by ESL FACEIT Group, owned by Saudi government entity Savvy Games Group. This year’s edition runs from July 7 to August 24, concluding with the New Global Sport Conference (NGSC2025) at the Four Seasons Hotel in Riyadh.

For further information on partnered esports organizations for the 2025 Esports World Cup, read TEA’s detailed report.

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