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The German Olympic Sports Federation (DOSB) states esports does not meet the criteria to become a recognized sporting activity.

The DOSB distinguishes between sports simulations and other gaming titles, which it calls “eGaming.” It identifies risks in the latter, including game addiction and marketing incentives.

The German Games Industry Association says the DOSB has “not understood esports,” while the German Esports Federation says it “failed to understand even basic concepts of esports as sports.”

As esports pushes ahead for government recognition in Germany, the DOSB has remained one of its most vocal critics. On Monday, Germany’s national Olympic committee laid out its decision on esports, which it does not view as an independent sporting activity.

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]The DOSB does not agree that Germany’s tax code should be altered in favor of esports organizations.[/perfectpullquote]

Notably, the DOSB draws a distinction between electronic sports simulations, including FIFA and virtual archery, and video games such as Counter-Strike and League of Legends , which it refers to as “eGaming.” For the latter, the DOSB outlines a set of opportunities and risks. These include the clear marketing and financial incentives behind esports titles, the presence of violence in games, and the health risks, paying particular lip service to the recent classification by the World Health Organization (WHO) of video games as a potentially addictive activity.

In its conclusion, the DOSB says “eGaming” does not meet the criteria that would allow it to become a recognized sporting activity, and that it sees no need to include any standalone esports associations among its members. The DOSB said it reached its conclusions after setting up a working group, comprised of 25 individuals, to speak with those in the esports industry.

More importantly, the federation does not agree that Germany’s tax code should be altered in favor of esports organizations. Recognizing esports as a sport, as was agreed by the country’s current coalition government, could pave the way for esports clubs to apply for not-for-profit status, something that will mean reduced corporate and commercial taxes, among other benefits like receiving tax-advantaged donations.

The German Esports Federation (ESBD) opposes the DOSB’s decision. In a statement, ESBD president Hans Jagnow said that the federation failed to understand even basic concepts of esports as sports. “The DOSB leadership missed their chance today to position themselves in an open way towards a big esports movement in Germany,” he said. “Instead it is losing the young generation’s trust into sports.”

The German Games Industry Association (also known just as “game”), counts major esports organizations in Germany among its members, including ESL and Freaks 4U Gaming , and the German publishing branches of Riot Games and Activision Blizzard . It issued a statement echoing ESBD’s disappointment: “The DOSB, unfortunately, did not understand esports, as demonstrated by the constructed distinction between “virtual sports simulations” and “eGaming”,” said game CEO Felix Falk.

[perfectpullquote align=”left” cite=”” link=”” color=”” class=”” size=””]On Nov. 28, the Sports Committee of the Bundestag will be hosting a public hearing to learn more about esports. [/perfectpullquote]

There is a mix of opinion on esports when it comes to the global Olympic committee. The International Olympic Committee (IOC) stated esports could be considered a sporting activity, and after hosting a forum on the topic in Lausanne earlier this year, even set up a liaison group to explore the topic further. The Olympic Council of Asia (OCA) includes esports as one of its disciplines, which led to several games (including non-sports titles) being showcased at this year’s Asian Games.

Without recognition from the DOSB, however, German esports might suffer a setback. In September, the federal government specifically deferred to the DOSB to provide a definition of esports. In its statement, game is now calling on the coalition government to go ahead and fulfill its pledge to recognize esports, noting that it doesn’t need the DOSB’s approval to do this.

In a press conference at last weekend’s ESL One Hamburg event, ESL CEO Ralf Reichert also said he wants there to be further discussions between the DOSB and the esports scene. Speaking to Sport.de, Reichert said he is concerned “that the people who make a decision about this have never played computer games.”

On Nov. 28, the Sports Committee of the Bundestag will be hosting a public hearing to learn more about esports.

Disclosure: Esports Business Solutions UG, the company behind The Esports Observer, is a member of the German Games Industry Association.