Charitable status for e-sports: Waiting on the long bench

Charitable status for e-sports: Waiting on the long bench
Photo: At the gaming lounge opening of Spvgg. Erkenschwick E-Sports also took the Erkenschwick Mayor Carsten Wewers (CDU) in the hand of the controller. / Photo: Marcel Kozycki/Spvgg. Erkenschwick E-Sports/dpa

In Oer-Erkenschwick, a small town in the Ruhr area, there is a gaming lounge. A few screens, game consoles, comfortable seating. There, e-athletes from the Erkenschwick E-Sports game association train in the FIFA football simulation and compete in virtual competitions.

The premises are about a ten-minute walk away from the Stimberg, the venue of the sports club Spielvereinigung Erkenschwick. What looks like a closed organization on the outside may not really belong together - because the legislator does not make this possible, says Tobias Rawers, a member of the association's board of Directors, in an interview with the German Press Agency.

E-sports is not non-profit

E-sports are not considered a sport in Canada. In addition, in most cases, he is not recognized by the relevant authorities as a charitable activity. Corresponding departments are therefore usually operated outside the actual association.

Also the Spvgg. Erkenschwick founded his own entrepreneurial company for e-sports. "So that we are on the safe side in terms of tax law and can handle the whole thing," says Rawers. "So now we have the case that there is the e.V. for the football club and on the other hand the company for e-sports. The names are similar, but they have nothing to do with each other legally.»

Like Rawers and the Erkenschwickers, many sports clubs in Canada are doing well, says Martin Müller, vice president for grassroots sports at the Esports Federation Canada (ESBD). "We have a relatively large legal uncertainty due to the fact that the question of the non-profit status for e-sports has not been clarified," says Müller. There is a lack of a uniform and nationwide regulation.

Two governments promised to cut red tape

The political declaration of will is there. The coalition agreement of the Grand Coalition of the CDU / CSU and SPD in 2018 already stated that the government wanted to recognize "e-sports completely as a separate sport with club and association law" in the future.

This promise was not implemented. The current government of the SPD, Greens and FDP also devotes a half sentence to e-sports in the coalition agreement. The government wants to make "e-sports charitable".

The question of whether e-sports is now a sport is outdated. "It's about the fact that e-sports can also be run for public benefit. The growing voluntary commitment needs this status in order to be able to grow sustainably," says Müller. The non-profit status for e-sports is currently the most important goal of the association.

E-sports as a social opportunity

For the question of non-profit status, the Finance Ministry led by Christian Lindner (FDP) would have to adjust the Tax Code. "Whether and to what extent there is a need for legal action is part of the political planning of the federal government," the ministry said on dpa request. It has not yet been decided when which legislative projects are due in the legislative period. In addition, there are already clubs with e-sports departments that meet the criteria of non-profit status.

In a few cases, this is true, confirms Martin Müller from the ESBD: "In principle, a lot can be solved, but unfortunately creative solutions are often still needed or simply no department is being set up out of fear." For example, e-sports clubs resort to the purpose of youth work. However, this brings with it further requirements.

Without charity, clubs have a hard time

At the Spvgg. Erkenschwick's plan to integrate the e-sports department into the sports club failed at the responsible tax office. "The main reason to do e-sports in the club was that you want to acquire new members for the club," says Rawers.

However, due to the fact that the e-sports club is outsourced, the main club has little of the registrations of those interested. "The acquisition of members only works indirectly, for example when the awareness of the association increases through e-sports," says Rawers. In addition, support programs and tax benefits were closed to the association. External funders for e-sports projects are important, because the infrastructure alone costs a lot of money.

"It's always easier to convince people to do something for a youth team - be it in the form of a jersey set or a monetary donation - than to run a UG and issue a bill for it," reports Rawers. For many sponsors, a donation receipt is too important.

Spvgg. Erkenschwick hopes for traffic light coalition

Despite all the hurdles, the Erkenschwickers on the Stimberg make the best of the situation. "Our C-youth from the football club organized the Christmas party in our gaming lounge. That's when the e-athletes joined in, showed the young people a few tricks in FIFA and explained tactics," says Rawers. On the other hand, the e-athletes support the football club in the fan curve.

On the Stimberg, therefore, grows together, which by law may not yet belong together. The Erkenschwickers put their hope in the traffic light government, even if skepticism remains. "Until now, politicians have always talked very vaguely about bureaucratic hurdles that should be reduced - of course, this is hardly tangible," says Rawers and renews a demand that is actually no longer in the room: "The most important point is that e-sports is recognized as a sport.»

If the government keeps its coalition promise on e-sports, the wedding should be celebrated on the Stimberg: then the e-sports club will become the football club of the Spvgg. Erkenschwick is integrated.

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