Showing posts with label professional. Show all posts
Showing posts with label professional. Show all posts

Tuesday, 3 February 2026

Professional esports athletes must register for tax.

The law is clear - income from esports by professionals is taxable.

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 esports athletes would either be seen as an employee of, or as an an independent contractor, of the company for which he/she plays (see The basics about contracts for esports athletes) 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 esports athlete would  be seen by revenue authorities (SARS) 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 paying prize monies to professional athletes, and/or to the companies  for which they play, must satisfy themselves that they are complying to SARS rules. The companies receiving such prize money (which often call themselves MGO's) running professional teams need to register with the revenue authorities in regard to declaring their winnings and the withholding of tax on their athletes.

Additional reading:
Athlete's rights:

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Sunday, 1 February 2026

Is a professional gamer in South Africa entitled to a salary?

A former South African Protea team competing in IESF's championship in South Korea.

Only if a professional gamer in South Africa is legally classified as an employee is a professional gamer in South Africa entitled to a salary. Professional gamers in South Africa are not automatically entitled to a salary merely because they are “professional gamers”.

Here is the precise legal position under South African law.

1. Salary entitlement depends on employment status

Under South African labour law, a right to a salary arises only if a person is an “employee” as defined in the:

  • Labour Relations Act (LRA)

  • Basic Conditions of Employment Act (BCEA)

If a professional gamer is not an employee, there is no statutory right to a salary.

2. When a professional gamer is entitled to a salary

A gamer is entitled to a salary if the relationship with the esports organisation/team meets the legal tests for employment, regardless of what the contract is called.

Key indicators of employee status include (Section 200A LRA):

  • The organisation controls training schedules, match participation, conduct, or availability

  • The gamer is economically dependent on the organisation

  • The gamer is integrated into the organisation (branding, mandatory appearances, exclusivity)

  • The gamer must personally render services

  • The organisation supplies equipment, facilities, or infrastructure

  • The gamer works set hours or under direction

If these factors are present, the gamer is legally an employee, and then:

✔ The organisation must pay remuneration (salary/wages)
✔ The BCEA applies (leave, notice, working hours, etc.)
✔ Minimum wage laws may apply, depending on circumstances

Calling the contract a “player agreement” or “independent contractor agreement” does not override reality.

3. When a professional gamer is not entitled to a salary

A gamer is not entitled to a salary if they are genuinely an independent contractor, for example:

  • They operate as a self-employed individual

  • They invoice the organisation for services

  • They can compete for or work with other teams

  • They control their own training time

  • They bear their own business risk

  • Payment is per event, prize share, sponsorship split, or appearance fee

In this case:

✖ No BCEA protection
✖ No statutory salary requirement
✔ Payment is governed only by the contract

4. Important distinction: salary vs prize money

  • Prize money is not a salary

  • Sponsorship revenue sharing is not a salary

  • Appearance fees are not a salary

Only remuneration paid in an employment relationship qualifies as a salary under labour law.

5. Practical conclusion

Professional gamers in South Africa are entitled to a salary only if:

  • They are legally employees under the LRA/BCEA

They are not entitled to a salary if:

  • They are independent contractors or competitors earning prize-based or commercial income

Misclassification carries serious risk:

  • CCMA disputes

  • Back-pay claims

  • PAYE and SARS penalties

Additional reading:
Athlete's rights:

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Friday, 16 September 2022

How MSSA treats prize-money.

At all times MSSA attempts to protect athletes.

Mind Sports South Africa (MSSA) is nothing but fair. Being an association for its members, run by its members, and catering to the needs of its members, MSSA;s Rules and Regulations take into account the best possible outcomes.

Since, in international competition, prize money always comes into play, MSSA is cognizant of the efforts of its team members in fighting for the honour of the country and inwinning such prize money.

Thus, even though the prize money in international events is paid to the national federation, MSSA remits 80% of such prize money to the team members who were responsible in winning such.

The remaining 20% MSSA holds for development purposes. The members of the team responsible for winning such prize monies then decide on the development programme into which the 20% is paid. Such team members have full access to the accounts to ensure that such monies are spent wisely and in accordance with their wishes/

There too are many forms of development ranging from grass root programmes all the way up to elite.

Obviously, even though it is at the wishes of the players, MSSA always hopes that such funding is channelled into grass-root programmes in order to continue to grow the sport.

However, where members of a MSSA team are also members of a professional team, the payment of such winnings will be dependant on the contract between the professional team and the player. In some cases, professional teams are entitled to all earnings from participation, and in such cases, it is the athletes duty and responsibility to remit his/her share to the professional team.

In conclusion, all of MSSA's Student Team Esports South Africa shall earn 60% of the prize money to which they are entitled.

Additional reading:

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Friday, 26 August 2022

Freedom of Association


Last night Mind Sports South Africa (MSSA) received an enquiry from an esports athlete who although wishing to participate in the trials being held at MSSA's North West Online Esports Championships to be held on 27 August 2022 was told that he was forbidden to do so by his team's management.

This once again raises the issue of the principle of Freedom of Association which is enshrined in the South African Constitution.

The right to freedom of association, which is one of the cornerstones of liberal democracy, stems from a basic human need for society, community, and shared purpose in a freely chosen enterprise. It is an essential feature of (liberal or social) democratic society, protecting individuals from the vulnerability of isolation and ensuring the potential of effective participation in a society

In this case, the athlete was unable to produce his contract with the so-called professional team.

Without being able to review the contract, which is apparently held by the team, and not available to the athlete to beshown to third parties, MSSA is unable to express a comprehensive opinion.

While it is true that every employee must have a copy of their own contract, only if there is a NDA already specified in such contract, may the contract not be shown by the employee to third persons. However, it should be noted that, even if the contract  does contain an NDA, the employee always has the right to obtain legal opinion.

Thus, in order to see if the employer is infringing on the professional esports athlete's rights apropos Freedom of Association, the contract would have to be reviewed as the contract may impose limitations on the athlete in terms of representation, participation in non sanctioned events, wearing of kit, receiving addditional remuneration, etc.

It is therefore vitally important that every professioinal player, when signing a contract, follows the following steps:

  • Keep a copy of the contract, and
  • Obtain legal opinion before signing.
It must also be remembered that a contract cannot be unilaterally amended by the employer.Any amendments must be agreed to by both parties.

So, if you are an esports athlete, and you do not ave a copy of your contract, please remember that you have a legal right to possess such. In fact, for an employer to not provide an employee with a copy of his/her contract is contrary to the Conditions  of Employment Act and is a criminal offence.

All it takes to have a copy is for you to say to your employer, "Please provide me with a copy of my contract!".

It is that easy...

Additional reading

2022 Calendar of Events

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Tuesday, 26 January 2021

Sleep Coaching gamers


Mind Sports South Africa (MSSA) is ever mindful of improving player welfare and performance. With such belief Mr. Barry Bridges operates as MSSA's online coach and wellness consultant. 

Barry Bridges (ZAG Academy) is a qualified sports scientist who holds international certifications in sleep science, sports performance, golf fitness, and FMS movement testing.  He is based in Cape Town, South Africa and has over 12 years of experience working with Golf fitness for professional golfers such as interprovincial, national and sunshine tour golfers. While Barry had focused extensively on the golf industry he also has experience in working as a coach for strength and conditioning (soccer), corporate wellness, sleep coaching, and esports performance.

Barry uses the following list of tools to assess novice and professional gamers when they undergo when I sleep training. 

Barry further believes that education is vitally important when approaching gamers on this topic Gamers need to understand the 'why' and 'how' of sleep and recovery. Once the basic information has been covered, then Barry will dig deep into proper analysis and find out their sleep needs.

Gathering the information from the gamer will be the first step to allowing to identify weak performance points and to provide the best solutions going forward.

Here below are a few sleep tricks to help all gamers build sleep quality:
  • Make sure to get regular sleep wake up times this will help promote sleepiness the night leading up to sleep.
  • Get outside first thing in the morning and add some movement. The body needs sunlight and movement to reset our body clocks to prepare us for work. It is suggested that gamers have 15-30min of sunlight exposure in the morning, and add a walk or a early morning run and some stretching.
  • Eat on a regular basis. Meal timing is important for the stomach and sleep. When you eat on regular times you will be able to perform on a daily basis. I suggest aiming for a big breakfast, Medium lunch and a light dinner. Eat breakfast like a king, lunch like a prince, and supper like a peasant!

Anyone wishing to contact Barry Bridges can do so on WhatsApp: +27 (0) 83 651 4170.

Also read:

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Friday, 11 January 2019

Professional esports athletes must register for tax.

The law is quite clear.
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 esports athletes would be considered to be an employee of the company for which he plays (see The basics about contracts for esports athletes) 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 esports athlete would  be seen by revenue authorities (SARS) 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 (which often call themselves MGO's) running professional teams need to register with the revenue authorities in regard to declaring their winnings and the withholding of tax on their athletes.

Also read:
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Saturday, 25 November 2017

The true competitor...

Alasdair Donaldson (in Protea colours) demolishing his Namibian counterpart (in blue and red).
It really doesn't matter whether you are deemed to be an amateur or a professional, it is the mind set of the person that defines him/her as a true competitor.

Sure, professionals do have an advantage over amateurs in that they receive a salary and are able to do the sport as their first calling, whereas amateurs have to juggle with time to fit gaming into their work, family life, and other obligations.

Robert 'PandaTank' Botha was a true professional. With his monthly sponsorship from CoolerMaster, Robert was able to dedicate  his working day to gaming. For Robert it was a profession and he stuck to his strict routine of gym, practice, and analyzing the game.

Yet every so often, an amateur pops up who shows that he is made of the stuff.

Such is the likes of Alasdair Donaldson, who not only made it into MSSA's BOO! Protea Esports Team that wet off to play in IESF's 9th World Championships - Busan, got through the group stages, but is also committed to help train the next generation of SA's Tekken gamers.

While at such IESF's 9th World Championships - Busan, Alasdair watched an learned. He too made a point of playing as many 'friendlies' as possible against the other competitors. Alasdair made it quite clear that he was there to perform - everything else was irrelevant.

Participation at top international events are not seen as an end result, but instead are seen as just the beginning. Thus having participated in IESF's 9th World Championships - Busan, Alasdair seems to be even more enthused to play in championships in order to further  improve upon his already awesome standard.

For amateurs like Alasdair, participation in the sport seems to be a calling.

Sacrifices are made for the sport, but there are also huge rewards.

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Sunday, 12 March 2017

Contracts for eSports players: the basics.

Due care should be exercised when signing a contract.

All contracts should aim to provide players, clubs, organizers, and national federations with security, as well as outline the requirements of the  parties that enter into such.

There are basics to contracts of which all gamers should be aware.

In essence, an esports contract is like any employment contract. Where the gamers are employed by profit making ventures to earn monies (through appearance fees, sponsorships, prize-money), I am of the opinion that such contract must comply with the Basic Conditions of Employment Act. In such contract, the player's working conditions, pay, duties, and other pertinent details must be carefully spelt out.
As such contracts will provide for the following clauses:
  • Company or organizational guidelines
  • Ill health and leave benefits
  • Other benefits
  • Remuneration
  • Sponsorship requirements
  • The percentage the organisation will take from any potential tournament winnings
  • Working hours
Generally though, contracts for gamers will be for a finite period which could be a year or even a few months, or even just for a specific tournament.
However, in the case of all contracts, the contracts are subject to South African law.
The contracts  themselves may too have to comply with more than just the law. For example, Mind Sports South Africa will not select players who have contracts that are in conflict with the contract that MSSA requires the members of the National Team to sign.
It is a requirement in South African law to seek advice from a legal professional before signing. Any queries must too be raised before signing and clarification must be obtained. 
All 'vagueness' must be resolved before signing.
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Sunday, 15 January 2017

Find your dream!

Francois Mouton representing South Africa in HearthStone at IeSF's 8th World Championships - Jakarta. 
It is not easy to find your dream.

There are so many people along the way that  might attempt to deter you, or steer you along a different path for their own ulterior motives.

Then there are those who go out and try to educate and get you to create a considered opinion.

In my own life, I consider myself to be blessed to be surrounded by the latter.

My parents (now deceased) always promoted freedom of thought at a time in South Africa when such freedom was not much appreciated. Then there was Zvi Katabi, my old swimming coach, who added much, and to whom I shall always be indebted.

But I digress.

Many gamers will look at the two options offered to gamers in South Africa by Mind Sports South Africa (MSSA) on the one side, and by private operators (like TELKOM) on the other.

Such gamers feel that they need to choose between the two.

The truth is that gamers can do both.

Few gamers are aware that  the league offered by TELKOM was in fact started by MSSA in 2005.

It is important though that gamers get in as many competition type games as possible if they are to improve on an international stage.

In my own experience, I have found that I was only ready for international competition if I had played in at least 5 competitions between championships

Thus, in order to find your dream, you have to put in a lot of work.

Your dream will  not just fall into your lap, and often you will find that the more difficult path leads to greater success.

Just as it takes years of study to acquire a degree to find the career of choice, so becoming a professional gamer requires hours of training, competitive play, and taking every opportunity that is offered no matter by what, who, or whom.
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Sunday, 8 January 2017

A loss is a loss.

Gamers in action at IeSF's 7th World Championships - Seoul.
In the harsh competitive world of gaming, it does not matter by how much you lose, if you lose, you lose.

It really does not matter by how big or small the  margin of the loss, it remains a loss, and such loss will stop the team from progressing in the tournament.

When reviewing the results of any team sport, it does not matter how many goals are scored. Although  the goals scored may count for other purposes, what really matters is how many games are won, drawn and lost.

Thus teams, involved in competitive play, must focus themselves on winning competition games, and even if they are amateur teams, behave in training and in competition as if they were professional teams.

When playing abroad, as either a club team or the national Protea team, the  gamers must understand that it is an honour to do so, and that they will be judged by all the other teams on their standard of play, behaviour, and bearing.

Bad sportsmanship at international level cannot be tolerated.

Needless to say MSSA's South African National teams are highly thought of by all of their peers due to their impeccable manners and sportsmanship.
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Saturday, 23 April 2016

Professional gamers need salaries!



On 12 April 2016 MyGaming wrote an article "How much money South Africa’s best gamers really make".

In such article it was noted that, "While other top gamers who MyGaming spoke to were hesitant to say how much they earned, they all agreed that it is not possible to support yourself financially through competitive gaming in South Africa."

 I feel that the MyGaming article reflects a number of articles that I have written about professional gamers over the years, being: 
Off course there are more such  articles on the site, but you'll just have to look for them yourself. Ha ha ha!

Ultimately, gamers must understand that it is not prize money that creates  a professional gamer. What does is:
  • A monthly salary,
  • A professional attitude, and
  • The willingness to comply with contractual obligations.
Until clubs and MGO's start playing salaries, South Africa's  gamers will never be professionals.
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Wednesday, 30 September 2015

It's all about the money!

I am always amazed at this time of the year with all the gamers claiming to be 'professionals'.

For the vast majority of gamers nothing could be further from the truth.

However, this year a youngster bragged to me that 'gaming owes him a living'!

Really! How?

Nobody is owed anything in this world unless there a clear indication/contract by the other party that there some form of payment to be made in lieu of services rendered.

The act of a person who willingly becomes involved in a sport does not create that contract, unless such person is employed to play for his/her employer.

If there isn't a contract stipulating employment, then that gamer is just an amateur.

That is if the gamer is playing for a non profit organisation.

I am of the opinion that due to the definition of the word 'remuneration' in the Basic conditions of Employment Act, that gamers who are playing for companies are being paid remuneration when they earn prizes of any form. This has serious implications for the company and the gamer alike.

Obviously the company will have to comply fully with the Basic Conditions of Employment Act.

For the gamer though, it means that he/she will have to enter into a contract in which his/her conditions of employment are stipulated.

Thus it stands to reason that only the gamers that play for companies of a profit making venture (like bvd, ventus, and the like) are proper professional gamers and possibly entitled to all the benefits that the Act allows.


Gamers who do not receive remuneration for the gaming, however, are not professionals and whether or not they earn prize money, are amateurs.

However, may be wrong, and if I am, I would like to know why.
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Saturday, 21 February 2015

So you want to be a Pro Gamer?


I am always amazed that people entering into the world of competitive gaming expect gaming to be somehow different from the other more traditional sports. As with the other sports, being a professional sportsman is not all about fun and playing for fun.

It is all about hard work – just like any other career that is from 9H00 to 17H00.

Of course you must enjoy it if you want to get the most out of it, but it is all about hard work, and like anything else, there will be the moments when you have been knocked to the ground and when you wonder why you are even doing it.

That is the moment that the champions are separated from the losers, the champions will immediately get up and carry on.

However, if you still want to be a professional gamer, you should:

Take care in picking your game. Picking a game is the first important step. You should be almost blinkered in choosing your game, and when you play it, you should learn as much as possible about the game that you have chosen. Any other game that you play should also feed into the game that you have chosen so that the recreational games, while different, also hone the tactics/strategies/ or other skills that you use in your primary choice of game.

The game that you choose should also be a game that is played on an international level. There is no point in choosing a game that is only played within a small group, or one that will be redundant within 12 months as you will then be limiting your own earning potential.

Choose the long-road. So many people entering gaming choose the short-road that offers what appears to be quick returns. This is the wrong approach as the quick returns are often not substantial nor sustainable. The long-road, although harder will give greater returns for a longer time period. Thus PandaTank instead of going to play in the DGC competition at rAge in 2011 and 2012, he went to the MSSA National Team Trials. By forgoing the quick-fix of the limited prize money, PandaTank was able to compete in the 3rd & 4th IeSF World Championships in South Korea where he was noticed. By being noticed at such a level thus allowed him to fly to the USA, France, and Sweden. Not only that the long-term view that PandaTank took, meant that he would become the first ever South African gamer who would be paid a salary to play as a full-time career.

Stay motivated. Being a professional gamer is hard. There are contractual obligations in terms of guest appearances, the number of championships that you have to play as well as even in what position you finish in said championships. Then you will have to face the critics which will range from your own family through to friends, bloggers and journalists. At times it seems more than daunting. But remember that you are doing what you want to, and that you should be absolutely blinkered about it, and put your choice above everything else.

Practice, practice, practice - perfectly. The first thing you must do is set aside the time in which you practice, and then, keep to it! Nothing must come between you and your practice, not your friends not a good night out, not a birthday, nothing! In the practice sessions you must draw up a schedule for improving you reaction speed, knowledge of the game, knowledge of the maps, how others play the game. The discipline that you learn from a well structured practice schedule will treat you well in a competition environment and in later life.

Get the correct equipment. Just as you would not take a Mini Cooper into a F1 race, the incorrect equipment can hamper your chances of success. eSports is a sport of nanoseconds, and, equipment that is outdated or not of the proper standard can be the difference between winning or losing. Even having the proper equipment while you are travelling to or from competitions is important as you do not want to miss the opportunity for every possible opportunity for training.

Find the right team. Once you have established yourself on an amateur level as a competitive gamer, find the club that treats you as a true professional gamer. Do not go to the clubs that offer 'flash', that is, equipment and other freebies. Look for the club that offers a salary and meets with the legal requirements of such. Remember, this is your career and you need cash on the table. You cannot eat gifts, hard-drives and such, you need cash to pay for your living expenses. A club/clan/team that does not pay a salary is not a professional team, it is merely a bunch of amateur players who think that they are professionals. Also, choose a team that is close to you if it is a team game that you are playing as you will need to practice together.

Enter tournaments. As soon you get your gaming equipment, start playing in LAN championships. Sure you will lose at first, but the championships are a good way of preparing you mentally for those big games and for you to develop your big match temperament (BMT). Keep a book with you, and at the end of every game write down what you did right, what you did wrong, as well as how you feel you could have done better. Play as many LAN championships as you can as you will build up a reputation of being dutiful and passionate about the game you play.

Get sponsored. In all sports, athletes benefit from sponsorship. Many years ago I had the privilege of working with Corrie Sanders, and even though the prize-money that boxers win puts gaming to shame, Corrie still made sure that he was sponsored by reputable companies. To get a proper sponsorship, you can do it yourself, or you can go to an accredited sports agent.

Gaming can be a legitimate career path for those who are serious about it, but gaming is still in its embryonic stages in South Africa, so it will be hard, but it can be done!
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