"The Draft Bill on Esports Non-Profit Status Creates More Problems Than It Solves."

The draft bill on the 2025 Tax Amendment Act, prepared by the German Federal Ministry of Finance, contains an approach to the non-profit status of esports in Germany for the first time. However, according to game - the German Games Industry Association, the E-Sport-Bund Deutschland e.V. (ESBD) and the Landessportbund Nordrhein-Westfalen, this approach is ineffective and causes more problems than it solves.

The game association, the ESBD (German Esports Federation) and the Landessportbund Nordrhein-Westfalen (North Rhine-Westphalia State Sports Federation) have also clarified that the current draft would fundamentally hinder the efforts of eeports and traditional sports to organise themselves and find common ground with regard to the Olympic eeports Games. A particularly critical point is that esports would have to be included in the section on the non-profit status of sport in the German Tax Code. Otherwise, sports clubs would only be able to establish esports programmes by amending their constitution, which requires the consent of all members. "In practice, this bureaucratic hurdle is usually almost impossible to overcome," emphasise the three organisations. In addition, the old debate on violence unnecessarily raises an issue that has long been resolved. Furthermore, there is no clear statement that the regulation does not set a precedent for equating esports with sport automatically.

Felix Falk (Managing Director of game) and Christopher Flato (ESBD President) commented on the draft as follows: "For years, the esports community in Germany has been waiting for the non-profit status that politicians have promised. While the current draft bill from the Federal Ministry of Finance contains a corresponding approach for the first time, it is heading in the wrong direction in terms of content. Overall, it is based on an outdated text proposal that the three-party coalition ('Ampel') was unable to agree on. The current draft is therefore completely at odds with the games policy of the current government, which has been highly effective in establishing Germany as a gaming location thus far. Instead of rehashing outdated debates about the protection of minors, whose high level is already ensured in Germany, the community should be taken seriously, and esports and clubs should be granted independence. It is crucial that a joint dialogue is established to shape the non-profit status of esports in a way that genuinely supports the clubs and the dedicated community."

Jens Wortmann from the North Rhine-Westphalia State Sports Federation adds: "Sports clubs that want to create esports offerings and thus take on social responsibility in terms of media education, youth protection, and consideration of young people's interests need legally secure, non-bureaucratic regulations governing non-profit status. The current draft does not take this into account sufficiently."

However, the Schleswig-Holstein E-Sports Association (EVSH) emphasises that esports are being explicitly included in the list of non-profit purposes in the German Tax Code for the first time. "We are at a turning point - after seven years of intense political debate, esports are finally being recognised as socially valuable for tax purposes. This is a milestone for clubs, officials, and the entire community," explains Dr Oliver Daum, Second Chairman of the EVSH. "We should see this draft for what it is: an important first step in the right direction. However, we must now engage in dialogue with political decision-makers to ensure that the diversity of esports is reflected in legislation."

Never miss anything from the German, Swiss and Austrian games industry again: subscribe for free to our Daily newsletter and get all news straight to your inbox.