Winning prize-money as a professional gamer.

There is a specific inclusion in the gross income definition (the definition used as the starting point to determine an individual’s taxable income) which states that amounts received in relation to services rendered – even if it is a voluntary award – will be included in gross income and subject to tax.

Since a professional gamer would be considered to be an employee of the company for which he plays (see Contracts for eSports players: the basics) if such employee receives a reward related to his job function, it will be considered gross income as it is linked to services rendered.

Thus winning prize money in a competition if you are a professional gamer would  be seen by revenue authorities as being related to a job function.

Whether the prize could be cash or otherwise, the prize will still be subject to tax.

If it is a non-cash prize, the monetary worth of that specific item will be included in gross income and subject to tax.

Thus it stands to reason that all companies running professional teams need to register with the revenue authorities in regard to declaring their winnings and the withholding of tax on their athletes.

Brazilian and Russian Draughts

Just seen on the MSSA facebook that the MSSA may be sending a player to participate in the 2015 edition of the Russian and Brazilian World Championships for the Brazilian and Russian variations of Draughts.

Such 2015 World Championships will be played in St Petersburg, Russia from 2 to 11 October 2015.

Few are aware that the championship carries prize money of 3,600,000.00 roubles (approximately US$64,000.00).

While it is unlikely that any South African, at their first ever foray, will end in the prize-money, the opportunity to go to Russia is fantastic. St Petersburg, often referred to as Venice of the North) is a truly beautiful city and is much steeped in history. 

History that changed the world, and which still reverberates in South African politics today!

Although the variation is different from the very much more static Anglo-American that is more popular in South Africa, this trip offers huge benefits for the person selected to go as well as for South Africa as a whole.

Brazilian Draughts has a great deal of similarity with a version played in South African townships, and is offer at the Western Cape Championships that will be played at Fairmont High School on 22 & 23 August 2015.

The rules are easily available:

Brazilian Draughts: https://en.wikipedia.org/wiki/Brazilian_draughts
Russian Draughts: https://en.wikipedia.org/wiki/Russian_draughts

Who will go and represent South Africa?

Are owners of private eSports events holding development to ransom?

Development has always, and will always, be an important part of the growth of any sport.

And that is why the non-profit clubs are so important. The non-profit clubs are run by volunteers who spend hours of their time administrating the club and coaching the players.

As a result of the hard work done by the volunteers, monies are able to be expended in the pursuit of developing the sport among those less fortunate and/or to give those playing a greater stab at reaching excellence.

The volunteerism though, is not limited to administration and coaching, but also extends into the realm of hosting events and refereeing such events.

This again releases money for greater use in terms of development, and while some sportspersons may complain that the events are too amateurish, monies have been freed up to pay for teams and other such perks.

However, those that are determined to run events for personal gain put nothing back into the sport.

While such operators run events, it must be remembered that such operators are only interested in the bottom line and making a profit.

Yes, they may have events that have a greater degree of 'razzmatazz', but that is all they are – all glitter and no gold!

The money that goes into such events bis thus diverted from gaming as a sport and further re-inforces all the worst aspects of gaming. Such aspects are the promotion of the belief that players who win prize-money are professional and re-inforces the financial well-being of a few.

These operators thus hold competitive eSports to ransom.