Why “E-Sport” does not equal “E-Sport” is explained by our guest author and expert Timo Schöber – Head of the think tank Esportionary – using a current example in politics.
The CDU/CSU parliamentary group of the German Bundestag presented a position paper (via cducsu.de) on volunteer work in Germany on June 16, 2020. What may initially sound less relevant for E-Sports is associated with high significance for electronic sports. Under point 2.6 of the document, it states that E-Sports should be included in the Tax Code (§52 AO via gesetze-im-internet.de), specifically in the corresponding application decree. However, the parliamentary group qualifies this addition, stating in the document: “E-Sports falls under the term sport as long as it involves electronic sports simulations”.
Various organizations have generally welcomed this step towards E-Sports, for example, the eSport-Bund Deutschland (via gameswirtschaft.de) (ESBD), but also pointed out that the limitation to sports simulations is not productive.
Why the initiative of the CDU/CSU Bundestag parliamentary group is more of a step in the wrong direction will be outlined below.
E-Sport versus eGaming: Adaptation of the DOSB’s stance
The German Olympic Sports Confederation (DOSB) divides competitive gaming into two categories:
- E-Sport: Sports simulations, such as FIFA or NBA2k.
- eGaming: All video games except sports simulations, such as League of Legends and Counter-Strike: Global Offensive.
This classification has been widely criticized, not least because the DOSB does not classify E-Sports based on what happens in front of the screen, but rather according to different genres. E-Sport is defined by competitiveness, training, performance, and athletic aspects. It does not matter which genre is played. E-Sport differs from gaming by what happens in front of the screen: high APM numbers (actions per minute), multitasking, preparation for competitions and opponents, comprehensive training plans, supplementary sports, nutrition, and so on.
The CDU/CSU Bundestag parliamentary group is clearly adapting the DOSB’s position. This weakens the position paper on E-Sports overall, as the views of the largest German E-Sports critic (DOSB) have been adopted. Apparently, the sports lobby in Berlin has done an excellent job.
But not entirely: It states that E-Sport would fall under the definition of sport when it comes to sports simulations. This means that it is acknowledged that E-Sport does not only consist of sports simulations; otherwise, the second half of the sentence would be obsolete. This makes the approach of the CDU/CSU Bundestag parliamentary group even more questionable: If one knows that E-Sport is not just sports simulations, why then adopt the DOSB’s position regarding genre classification?
After the Fortnite World Cup 2019, “dissed” a Sportschau presenter eSport players and received a backlash. She intended to spark a discussion about how much E-Sport can be equated with traditional sports.
The wrong focus
The political focus on sports simulations exists in this form only in Germany. It not only hinders discussions about E-Sport but also paints a false picture of E-Sport as a whole.
Currently, there is only one sports simulation among the most important eSports titles (via Esportsobserver). However, FIFA is considered only a Tier 3 game. This means that FIFA plays only in the third league of the “big” eSports disciplines. The current Tier 1 games, i.e., the most important eSports disciplines, are the MOBAs League of Legends and Dota 2, as well as the tactical shooters Counter-Strike: Global Offensive and Rainbow Six Siege.
This also highlights the pure professional scene. The most successful sports simulation based on prize money is FIFA 19 with around 3.3 million US dollars in total. In comparison, the The International 2019 in Dota 2, which is a single tournament, distributed over 34 million US dollars in prize money. While this is an outlier, other games also distribute significantly more prize money at individual tournaments than FIFA 19 did in total within a year, such as League of Legends alone at previously held three tournaments.
FIFA 19, as the most successful title of the major sports simulation in E-Sport, ranks 28th among all eSports disciplines when considering the prize money distributed. Even when cumulatively considering the four most successful parts of the FIFA series, FIFA still only ranks 14th. Furthermore, in FIFA, pay-to-win aspects (via esports.com) are implemented, which further diminishes the eSports status of the game series. Sports simulations are part of eSports, but they are by no means the most important. Particularly MOBAs, tactical shooters, and real-time strategy games are much more relevant, as is the controversial Battle Royale genre, which is heavily debated in eSports.
Why the Tax Code is important
§52 of the Tax Code regulates charitable purposes. With a charitable status, various benefits are associated, such as tax advantages. In addition, it also offers many indirect advantages, particularly regarding social perception. When something is officially deemed charitable, it is often viewed very positively by the public.
Charitable status is also of great importance for political reasons. On one hand, because charitable organizations can access government funding to advance projects of societal benefit.
On the other hand, something that is charitable is perceived differently in political discourse than something that does not have this status. This means that the debate (via Zeit.de) about whether eSports is a sport or not could be revived – which would make a separate mention of eSports in the Tax Code entirely unnecessary. After all, sports is a charitable purpose (§52, paragraph 2, number 21 AO).
E-Sport is charitable
The media coverage primarily focuses on professional E-Sport: full arenas, high prize money, well-paid professionals. However, this is just the tip of the iceberg. E-Sport is primarily a grassroots sport (via t3n.de). Grassroots players are usually also fans of professional organizations and players. They buy merchandise, attend events, and fund competitions, for example, through in-game purchases of game content. They bring passion and dedication to E-Sport and simultaneously create a huge base, a foundation of fans without which the comparatively small area of professional sports would not be possible.
Based on this passion, numerous grassroots clubs in E-Sport have been established across Germany in recent years. They bring the topic into society. They offer training in the areas of media competence and youth work. They create socialization points in the form of clubhouses to bring gamers out of their rooms and into the community of the club.
They educate parents, schools, and universities about E-Sport. They support students with thesis work and develop their own research projects. They organize tournaments and events for everyone, often in collaboration with, for example, youth associations. They organize charity events to support their region.
They provide training plans and support youth in E-Sport by, for example, demonstrating that supplementary sports are important and that school comes before E-Sport. They network with local and regional companies and traditional sports clubs. Many such sports clubs also recognize the opportunities of E-Sport, for instance, in attracting new talent, which is why they are creating their own E-Sport divisions.
All of this is lived charity, especially in grassroots sports, frequently for their own region or state.
– What must happen for E-Sport to be officially recognized as “real sport”
– The history of modern E-Sport – When did it all begin?
Conclusion
The “initiative” of the CDU/CSU Bundestag parliamentary group is basically a regression because it aligns almost entirely with the DOSB. This will harden the fronts that exist between various parties in E-Sport and sports. On the other hand, the legal uncertainty for traditional sports clubs with E-Sport divisions remains: Will they lose their charitable status because they not only offer FIFA and NBA2k, but also E-Sport titles like League of Legends and Counter-Strike: Global Offensive?
The recognition of E-Sport as a sport, as well as the acknowledgment of the charitable contributions of grassroots players and clubs will, in any case, not materialize. This is not only unfortunate but a slap in the face for all those who dedicate themselves day by day to E-Sport, society, and youth in this field. At this point, politics has clearly failed, especially considering that the CDU/CSU as governing parties in the coalition agreement (via Welt.de) of 2018 had previously agreed: “We acknowledge the growing importance of the eSports landscape in Germany. Since eSports teaches important skills that are significant not only in the digital world, requires training and sports structures, we will recognize eSports fully as an independent sport with club and association law and support the creation of an Olympic perspective.”
The emphasis is on “fully”.
In other areas, E-Sport is advancing further. Just in December 2019, Germany took an important step towards becoming a gaming and E-Sport country.
