Historically, the goblins in Harry Potter have been accused of perpetuating anti-Semitic imagery, with some fans drawing comparisons between their portrayal and position in the Harry Potter books and films as being similar to the ways Jewish characters have been portrayed in Nazi propaganda. The Hogwarts Legacy story has also faced criticism. Leavitt says he "made the decision to part ways with Avalanche Software" in 2021, shortly after the backlash. In 2021, the game's lead designer Troy Leavitt, left the project after criticism online following the uncovering of YouTube videos from 2016-2018 where Leavitt was seen to dismiss sexual misconduct complaints against corporate executives and defended elements of the broader Gamergate harassment campaign. J.K Rowling's dangerous statements against the trans community aren't the only controversies surrounding Hogwarts Legacy. Ultimately, while WB Games has done its best to make it clear that Rowling has not been involved in the creation of Hogwarts Legacy, the nature of IP rights and royalties mean that the author will ultimately profit from its release, sales, and success. While Rowling is yet to comment on Hogwarts Legacy directly, the author did go after Jessie Earl, a YouTuber who supports (and belongs to) the transgender community, after they commented that supporting "Hogwarts Legacy is harmful." Rowling responded by claiming that not supporting anything "connected with her" because of her controversial views wouldn't be akin to burning their Harry Potter books or movies – but rather burning down "the local library, anything with an owl on it, and their own pet dog."
The author retains the IP rights to the wider Harry Potter franchise, which means that she will receive revenue for the sale of all Harry Potter related creations – be it the sale of theater tickets, Blu-rays, merchandise, or video games.
J.K Rowling isn't directly involved with production of Hogwarts Legacy, although she will indirectly profit from its success.
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