E-sports as a non-profit activity – immigration law consequences from a legal perspective

The recognition of esports as a non-profit activity marks a turning point in legal policy with far-reaching consequences beyond tax and association law. This step also opens up new lines of argument and opportunities in immigration law . From a legal perspective, this development is of considerable practical importance, particularly for clubs, associations, foreign players, coaches, analysts, and officials. For VISAGUARD, this raises the question of how the new non-profit status affects visa and residence permits – and where legal boundaries remain.

Non-profit status as a legal reference point in immigration law

German immigration law does not recognize the concept of non-profit status (apart from Section 7 of the Residence Act ) as an independent residence permit . Nevertheless, it plays an important indirect role. Numerous provisions of the Residence Act are linked to activities performed for specific organizations, such as public or non-profit institutions, or assess the purpose of an activity within the framework of a discretionary decision . The recognition of esports as non-profit thus changes the legal classification of the organizations behind it – and influences the assessment under immigration law of the activities carried out there.

Until now, esports has often been perceived by authorities as a purely commercial leisure or entertainment industry . This frequently led to skepticism regarding residency permits, especially when the individual was not a typical professional athlete . The recognition of esports as a non-profit activity now acknowledges that it also serves to promote youth, education, integration, media literacy, and international exchange. This purpose carries considerable weight in residency law.

Impact on residence permits for club and association work

A key area of application concerns foreign nationals who are active in esports not as traditional employees, but within the framework of club or association structures. Non-profit esports clubs will be able to argue more strongly in the future that they operate in a manner comparable to sports, cultural, or educational associations.

In practice, non-profit status can help to define the purpose of residence clearly and plausibly. Activities such as youth training, club coordination, educational support, or international exchange projects can now be presented more convincingly as legitimate purposes for residence. It will become more difficult for immigration authorities to categorically claim that esports lacks social relevance.

Limits of the new legal situation and official practice

Despite all the opportunities, the impact of non-profit status should not be overestimated . Immigration authorities and embassies will continue to verify whether the specific residence permit covers the intended activity. The Federal Employment Agency will also remain regularly involved in cases of employment requiring a permit . The recognition of esports as a non-profit activity does not replace examinations under labor or immigration law. From a legal perspective, it is also expected that official practice will be inconsistent. While some authorities will embrace the new legal situation, others will remain hesitant. This makes a sound legal argument all the more important, one that specifically links the non-profit nature of the activity to the purpose of residence.

Conclusion: New arguments, but no automatic process.

The recognition of esports as a non-profit activity sends a strong signal – also for immigration law. It creates new avenues for visa and residence permits, strengthens the position of non-profit esports organizations, and opens up better prospects, especially for young talents and officials. At the same time, immigration law remains a formalized system in which non-profit status is not a free pass. The most significant consequence under immigration law of recognizing esports as a non-profit activity is therefore likely to lie in the discretionary arguments under Section 7 of the German Residence Act (AufenthG).