As expected, the tax change decided by the Federal Council was also passed by the Federal Council today. This clears the last formal hurdle to the recognition of esports as a non-profit status in Germany.
Although approval was considered a mere formality, without it, the recognition of esports as a non-profit activity in Germany could still have failed. At its 1060th meeting, the German Bundesrat, the upper house of the Federal Republic of Germany, passed the corresponding tax amendment law, in which recognition was a small part of numerous changes.
The news was well received by stakeholders. “Thank you to everyone who has worked hard for this over the last few years and especially the last few months,” wrote the ESBD on LinkedIn, for example.
Original article from December 4, 2025:
In today's tax amendment session of the Bundestag, the non-profit status for esports, in talks since 2018, has finally been approved. Now, only the final yes of the Bundesrat on 19 December is missing. ESBD president Flato and game MD Falk approve of the changes.
After years of stagnation, the non-profit status for esports in Germany is finally on the way to reality: In today’s discussion of the tax amendment law 2025, the German Bundestag has approved the changes. Apart from tax reliefs for commuters, restaurant owners and volunteer workers, the amendment includes a crucial detail for the games industry: Esports will now be able to be accepted as non-profit work, not only giving volunteers the tax benefits of other volunteers, but also enabling associations and events to get the benefits associated with the special status akin to other sports clubs.
The status isn’t entirely through and decided, however: It has to be approved by the Bundesrat on December 19, which is however expected to happen because of a wave of support from several Federal states.
Chris Flato, President of the German E-Sports Federation (ESBD), commented favourable on the changes: “With the planned non-profit status from 2026, German e-sports is taking a historic step: our clubs will finally receive the same recognition and legal certainty as traditional sports clubs. This means more support for youth work, stable club structures, and real opportunities for sustainable youth development. The tax amendment law shows that e-sports has arrived – as a contemporary sports and youth movement with a clear future.”
Felix Falk, managing director of game, has also stated the approval of the association: "The long-awaited non-profit status for e-sports clubs is finally here. This socio-political recognition strengthens volunteer work in Germany and provides an important boost for the many amateur sports clubs in Germany, which can now develop e-sports programs without fear of losing their non-profit status. This once again highlights the social potential of games – when the political framework conditions are right."
The non-profit status for e-sports was first mentioned in the coalition agreement in 2018, and the red-green-yellow coalition government had also made it a priority during their time, but failed to deliver due to inner conflicts.
