Bundestag Resolution: E-sports to be recognized as non-profit

On Thursday, the Bundestag gave the green light for the long-demanded non-profit status of e-sports associations with the resolution of the 2025 Tax Amendment Act. This marks the final round of a political stalemate that began in the 2018 coalition agreement and continued throughout the entire legislative period. The motion was approved by CDU/CSU and SPD, while AfD and the Greens voted against it. The Left abstained.

The Bundestag decision is considered an important step for the gaming industry and volunteer engagement in the digital space. In tax terms, non-profit status means that e-sports associations will benefit from a range of important advantages in the future. Specifically, these include exemption from corporate and trade tax, the ability to issue donation receipts, making donations tax-deductible, and access to public funding. Furthermore, the status simplifies the use of volunteer allowances and the trainer's tax-free allowance, which is crucial for the organization of grassroots sports.

According to a representative survey by Game – the German Games Industry Association, around 7 out of 10 Germans (69 percent) consider the recognition of non-profit status to be contemporary. Parents, in particular, are open-minded: 51 percent of guardians of minors under 18 can imagine registering their children with an e-sports association, provided that the focus is on teaching the correct use of digital media. 54 percent expect a general revitalization of club culture. 58 percent expect an increase in Germany's attractiveness as an e-sports location.

Criticism and a long road to implementation

The path to non-profit status for e-sports was arduous and marked by conservative resistance. For a long time, tax relief was considered to be exclusively reserved for traditional sports. Prominent critics such as former DFB president Reinhard Grindel vehemently opposed the recognition in the past. The official described e-sports as "absolute impoverishment." The legislative implementation was therefore repeatedly delayed by bureaucratic hurdles and political reservations.

With this resolution, the Bundestag officially recognizes the public-benefit engagement of e-sports associations. Game CEO Felix Falk emphasizes the historical significance. The innovation brings an important impetus for the many grassroots sports clubs, which can now more easily establish e-sports offerings. The solution reached preserves the autonomy of both organized traditional sports and the emerging e-sports scene.

Now, only the formal approval of the Bundesrat on December 19th is missing. However, the states are demanding compensation for the expected loss of tax revenue, which the federal government rejects.

(mho)