Esports Clubs to Be Treated as Non-Profit Organisations From the Beginning of 2026 in Germany

Following initial issues with the first draft at the start of the week, the final government draft on the non-profit status of esports has been met with widespread approval from game - Verband der deutschen Games-Branche, the E-Sport-Bund Deutschland (ESBD) and the Landessportbund Nordrhein-Westfalen.

From 1 January 2026, esports clubs will be treated as non-profit organisations. Following the publication of an initial draft text at the beginning of the week, which raised a number of legal issues (as reported by GamesMarkt), the final government draft has now been warmly welcomed by game - Verband der deutschen Games-Branche (the German Games Industry Association), the E-Sport-Bund Deutschland (ESBD; German E-Sports Federation and the Landessportbund Nordrhein-Westfalen (North Rhine-Westphalia State Sports Federation). As well as recognising esports and clubs that operate in the public interest, the new regulations also preserve the autonomy of esports and traditional sports. Following the first mention of non-profit status for esports in the 2018 coalition agreement, this draft law is the first step towards its implementation, although it still has to be approved in the parliamentary process.

Felix Falk, Managing Director of game, said: "Today's cabinet decision is an important and long-awaited signal for Germany as an esports location. The solution that has now been found for non-profit status benefits both esports and traditional sports. This means that clubs can finally engage in non-profit activities. Special thanks go to Finance Minister Lars Klingbeil and Games Minister Dorothee Bär. We are now counting on the German Bundestag to implement this socio-political recognition of esports."

Christopher Flato, ESBD President: "Today is a historic day for esports in Germany. With the recognition of its non-profit status, esports is finally receiving the legal and social recognition that we and many others have been campaigning for for years. This decision paves the way for esports clubs across Germany to enjoy the same opportunities as traditional sports clubs, enabling them to promote, train and carry out integrative work more effectively. Similarly, sports clubs now finally have the legal certainty to develop long-term esports programmes. This will benefit not only our athletes, but also children, young people and adults who experience community, values and participation through esports. We would like to express our sincere thanks to all the political decision-makers who made this important step possible, and we look forward to its final implementation by the Bundestag."

Jens Wortmann, from the North Rhine-Westphalia State Sports Federation, said: "With the cabinet draft, the federal government is implementing the announced non-profit status of esports. It is particularly welcome that the government has addressed the concerns of various associations regarding the initial draft bill, resulting in a much more practical proposal, particularly for sports clubs. The emphasis on protecting minors, as well as on the potential of esports for health promotion, preventing addiction and strengthening social skills, is also to be welcomed."

Statement by Bavarian Digital Minister Dr Fabian Mehring on the Federal Cabinet's decision regarding the non-profit status of esports: "Today is a historic day for esports in Germany. With this decision, the Federal Cabinet is laying the foundation for esports clubs to be recognised as non-profit organisations from 2026 onwards. This acknowledges the voluntary commitment of many volunteers and finally creates a sustainable basis for social participation, talent promotion and digital education. While countries such as Denmark and South Korea have been promoting esports structurally for years, our clubs have had to improvise and rely on passion to achieve what has long been standard practice elsewhere. Today's decision closes this fairness gap. It creates a level playing field, provides planning security, and opens the door to sustainable funding."

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