German government to recognise esports as non-profit activity

The German government has approved a proposal that would recognise esports as a non-profit activity.

The initiative aims to strengthen fair play, support the protection of youth, and encourage a healthy approach to the use of digital media.

The proposal, now awaiting formal approval from the Bundestag, could see esports organisations located within the country gain government recognition, along with tax benefits that have the potential to open opportunities for development.

The first draft of the legislation initially faced criticism from several gaming and esports entities based in Germany. This was due to the proposal being too restrictive and hindering efforts of the esports and traditional sports industries to find common ground regarding the upcoming Olympic Esports Games set to take place in 2027.

According to a report from E-Sport-Bund Deutschland, Germany remains Europe’s largest esports market, generating €160m (~£138.4m) in revenue, with sponsorship deals accounting for over 50% of the earnings.

The country is also home to the likes of Berlin International Gaming (BIG), G2 Esports and MOUZ, all of which have a significant impact across the European esports sector, particularly Counter-Strike.

In the past five years, Germany has continued to embrace esports as the industry grows across the globe. In 2020, the country introduced a dedicated visa, enabling players from outside of the European Union to enter the country and compete at events.

Throughout 2025, several governments across the world have started to embrace esports and the benefits the industry can bring to their countries.

The UK’s Department for Culture, Media and Sport began the hunt for a Head of Video Games and Esports, with the department’s former Head of Legislative Strategy, Paweł Jarzembowski, starting in the role in early September.

In August 2025, the Pakistan government signed a Memorandum of Understanding to develop the country’s first esports policy, which includes the formation of the Pakistan Esports Federation and the launch of dedicated training programmes.