General principles

Sporting activity is free, recognized and protected. It can be carried out individually or collectively, as well as professionally, amateurly or as a hobby.

The Regulatory Code recognizes and establishes the right of people to practice Sports, with a view to promoting its aspects of human, social, educational and cultural fulfillment, as well as regulating it as necessary to make it:

a) an activity suitable for improving the psycho-physical abilities of Players;

b) a factor of prevention and protection of public health;

c) a means of promoting the aggregation of people physical;

d) an area in which the fundamental rights and freedoms of the human person are always recognized and protected, even where the same operates and interacts through IT tools and telematic networks;

e) an area in which discrimination and distinctions of gender, sexual orientation, personal, economic and social conditions, political orientations and religious beliefs are not made.

The State of San Marino promotes good play and the conditions to enhance the social function of Esports as a cultural and educational tool.

Material and territorial scope of application

The Regulatory Code applies to Esports Activities, Esports Competitions and the cases specifically provided for therein.

It applies to Esports activities and competitions carried out:

a) entirely within the territory of the Republic of San Marino;

b) partially within the territory of the Republic of San Marino when the services or activities expressly indicated in the relevant provisions of the Code are carried out in the same territory.

The Code does not apply to activities and competitions in the field of Sport, which remains regulated by the current legislation on the matter.

Definitions

a) “Sport”: any form of psycho-physical activity aimed at obtaining results in professional, amateur or amateur competitions that are governed by institutionalized rules and that involve organized participation in which skills are expressed and, in a more or less intense manner depending on the case, resistance, dexterity, power, or combinations thereof;

b) “Esport”: any form of activity psycho-physical activity aimed at obtaining results in professional, amateur or amateur Sports Competitions carried out in a Sports Discipline; such competitions are governed by institutionalized rules and provide for organized participation in which skills are expressed and, in a more or less intense manner depending on the case, resistance, dexterity, power, or combinations thereof, all through the IT tools specific to each Sports Discipline, possibly adapted for the specific needs of people with disabilities;

c) “Sports Activity”: the psycho-physical activity carried out in accordance with letter b). The provision of the Sports Activity is the subject of a Sports Service Contract, regulated by the Code;

d) “Sports Discipline”: each Discipline explicitly recognized by the Sports Commission, which at least annually prepares the List of Sports Disciplines recognized by the Republic of San Marino. The disciplines not included in the aforementioned List do not constitute Sports Disciplines pursuant to the Code;

e) “Sports Competition”: the competition held in a Sports Discipline;

f) “Online Competition”: the competition held exclusively via telematics in all its phases, in which the Players participate from different locations;

g) “Offline Competition”: the competition held exclusively in one or more physical locations in cwhere the Esports Competition is held and in which all Players participate exclusively from these locations, even if at different times;

h) “Mixed Competition”: the competition held partly online and partly offline;

i) “Esports Performance”: the performance carried out by a Player in execution of a contract concluded with an Esports Team having as its object an Esports Activity;

j) “Player”: the natural person who carries out Esports Activity, individually or within an Esports Team;

k) “Professional Player”: the Player who carries out Sports Activities for a fee and on a continuous and prevalent basis compared to other jobs or professions and/or is classified as such due to clear reputation in the relevant Sports Discipline;

l) “Amateur Player”: the Player who carries out non-occasional and remunerated Sports Activities even if he/she exercises other jobs or professions;

m) “Amateur Player”: the Player who carries out non-occasional and unpaid Sports Activities;

n) “National Player”: the Player who carries out professional Sports Activities and who is resident, temporarily or definitively pursuant to the provisions of the law or of Laws 28 June 2010 n.110, 27 June 2013 n.71, 7 August 2017 n.94, 29 September 2017 n.115, 23 December 2020 n.223 and subsequent amendments or by the Delegated Decree 13 January 2019

n.101 and subsequent amendments, in the Republic of San Marino, as provided for in the Code;

o) “Esports Team”: the group of Players constituted by a Sports Association, a Professional Sports Company or a Sports Company, for participation, individually or collectively, in Sports Competitions, even if organized outside the Republic of San Marino;

p) “Associazione Esporttiva Dilettantistica”: the legal person, established in accordance with the Code, which creates and/or manages one or more Esports Teams normally composed of amateur and/or dilettante Players;

q) “Società Esporttiva Professionistica”: the legal person, established in accordance with the Code, which creates and/or manages one or more Esports Teams composed of professional and/or amateur and/or dilettante Players;

r) “Impresa Esporttiva”: the legal person that provides products and services in the Esports sector in accordance with the Code as a Broadcaster and/or Distributor and/or Owner or Esports Hall or Gaming House Manager and/or Organizer and/or Developer, and/or creates and/or manages one or more Esports Teams composed of professional and/or amateur and/or amateur Players;

s) “Broadcaster”: the legal person who provides the broadcasting service of Esports Competitions;

t) “Caster”: the natural person who provides the commentary and analysis service of Esports Competitions;

u) “Developer”: the natural or legal person who develops software to be used as an Esports Discipline and/or management system for Esports Competitions and/or Gaming Houses and/or Esports Halls;

v) “Distributor”: the legal person who provides the software distribution service referred to in letter u);

w) “Organizer”: the natural or legal person who organizes an Esports Competition;

x) “Esports Commission”: the supervisory authority established by the Code for the purpose of controlling, supervising and promoting Esports;

y) “Esports Operator”: the subjects referred to in letters j), k), l), m), n), o), p), q), r), s), t), u), v), w).

Rights and duties of Esports Operators

Esports Operators have the right to:

a) exercise free private economic initiative in the Esports sector, in accordance with the provisions of the Code;

b) freely express one’s thoughts, paying particular attention to compliance with the laws on the protection of’honor and dignity of others.

Esports Operators have the duty to:

a) always maintain conduct inspired by loyalty, fair play, good faith, impartiality, integrity and honesty;

b) comply with the provisions of the Code.

Esports Code of Ethics

The Esports Code of Ethics sets out the guiding principles that must guide the conduct of Esports Operators, which must always be inspired by loyalty, fair play, impartiality, integrity, honesty as well as the rejection of doping, cheating, match-fixing and any other unfair and illicit practice. The provisions of the Esports Code are intended to integrate and clarify what is provided for in the Code.

The Esports Code of Ethics is adopted by delegated decree on the proposal of the Esports Commission, which proposes the text drawn up in compliance with the Code. It is periodically updated with the same methods.

Violations of the rules contained in the Code of Ethics can be reported to the Esports Commission by natural and legal persons, following the procedure provided therein. The Esports Commission may however proceed ex officio.

The application of the sanctions provided for by the Code of Ethics is the responsibility of the Esports Commission.

Esports, education and training

The State:

a) promotes education and scholastic and ongoing training on Esports, oriented towards good play;

b) promotes collaboration with the relevant institutions to increase qualitatively and quantitatively the Esports Activity;

c) promotes initiatives for the dissemination of ethics and Esports culture, so as to encourage the cultural, civil and social growth of Esports Operators;

d) promotes initiatives for the psycho-physical well-being of Players to increase their motor and coordination skills and combat sedentary lifestyle;

e) promotes training courses in the Esports sector;

f) promotes and can sponsor the organization and holding of Esports events based on to comply with the principles set out in the Code.

School and university institutions, as well as public bodies and sports organizations, may sign specific memoranda of understanding with the Esports Commission for matters of mutual interest aimed at promoting and regulating specific skills and common activities.

Players

Players participate in Esports Competitions in compliance with the principles and provisions of the Code as well as the Code of Ethics.

National Players selected for national teams are required to respond to the invitations of the Esports Commission and honor the role assigned to them.

National Players Commission

Players can form a National Players Commission at the Esports Commission within the various Esports Disciplines, providing themselves with autonomous rules of operational functionality and governed according to guiding criteria approved by the Esports Commission, to formulate suggestions and proposals to the Esports Commission itself, as well as to the National Esports Federations.

Players’ Conduct

All subjects who practice Esports, in a professional, amateur or amateur form, are required to comply with the Code, the Dental Code and all internal and international regulations that regulate Esports activity.

Supervision and control over the organizational, disciplinary and administrative regularity of professional activities are exercised by the Esports Commission and the Esports Federations.

Players undertake to:

a) respect the rules of each Sports Discipline;

b) refrain from doping, cheating, match-fixing and any other unfair and/or illicit practices;

c) behave in a manner that is respectful of other people and living beings and, in particular, refrain from offensive or defamatory acts and conduct and discrimination on grounds of gender, nationality, ethnicity, sexual orientation, race, sexual orientation, political, religious belief.

Sports Performance Relationship and Establishment of the Sports Performance Relationship

The Sports Performance relationship regulated by the Code is established exclusively through the conclusion of a Professional, Amateur or Dilettantist Sports Performance Contract between the Player and the Esports Team in accordance with the legislation. This employment relationship is non-subordinate pursuant to Title IV of Law no. 164/2022.

Players may be hired under a subordinate employment contract only if a specific National Collective Labor Agreement is defined that provides for this possibility. In any case, the obligation of the Players to observe the Code of Ethics remains in force

issued pursuant to the Code, the international rules that regulate the Esports activity and the obligations set forth in the Code.

The establishment of the Esports Performance relationship is subject to the transmission, by the Esports Team to the Office for Work and Active Policies and Professional Training Center (hereinafter briefly ULPA-CFP), of a communication of the following information and documents:

a) identification data of the Player or of several Players in the case of cumulative communication, as well as related email and telephone numbers;

b) copy of the identification document of each Player;

c) indication of one or more Sports Disciplines practiced by each Player;

d) habitual place of provision of the service;

e) duration of the Contract;

f) copy of the Sports Service Contract registered at the Registry and Conservation Office.

The communication is a suitable title for the establishment of the Sports Performance relationship from the moment of its receipt by the ULPA-CFP. The ULPA-CFP will verify, within ten working days following receipt of the communication, the requirements and conditions required for the regular establishment of the relationship. After this period has elapsed without any communication of denial by the ULPA-CFP, there will be tacit acknowledgement of the regular establishment of the relationship. In case of need for integration of documentation or non-compliance, the ULPA-CFP assigns the Esport Team or the Player a term of five working days to regularize the communication, extendable in the presence of justified reasons.

In the event that regularization does not occur within the expected term or is not possible due to an irremediable conflict with the legislation in force on the matter, the ULPA-CFP immediately communicates, both to the Esport Team and to the Player, the immediate termination of the relationship.

If the lack of the requirements required by the law is clearly evident, and therefore it is clear that there is a desire to use services for which it is not possible to establish a legitimate Esports Service relationship, the sanctions provided for by the rules of the Title are applied to the Esport Team and, if applicable, to the Player. IV of Legislative Decree 5 October 2011 n. 156, on irregular work.

The tax, contribution, welfare treatment and social-health aspects relating to the Sports Performance relationship will be defined by delegated decree.

Sports Performance Contract

The Sports Performance Contract is a typical contract regoverned exclusively by the Code in the forms of the Sports Performance Contract:

a) Professional;

b) Amateur;

c) Amateur.

The Sports Performance Contract is:

a) fixed-term;

b) permitted only for the performance of Esports Activity and of the ancillary services strictly connected to the same;

c) renewable, upon notification to be sent to ULPA-CFP by the expiry date of the Contract;

d) of a non-subordinate nature in accordance with the provisions of Title IV of Law no. 164/2022, without prejudice to the fact that the Player must comply with the technical instructions and requirements for achieving the competitive purposes of the Esports Team;

e) concluded in written form.

The Esports Team is obliged of:

a) not assign the Player to tasks and activities not related to the Sports Activity and in any case such as not to allow the purpose for which the performance of such Activity is intended. Advertising activities may be carried out, including through social networks, public appearances and sponsorships of any kind, provided that they are directly connected to the Sports Activity carried out or to the image of the Esports Team, and in any case provided that such advertising activities are not predominant with respect to the Sports Activity, under penalty of transformation of the Sports Performance Contract into a permanent employment contract, with application of the ordinary discipline in terms of labor law;

b) ensure the presence of at least one person responsible for the definition and implementation of a training program, the technical and competitive management of the Players, including their psycho-physical well-being;

c) protect each Player against injuries and occupational diseases resulting from their Sports Activity.

The Esports Team is responsible for the safety and proper functioning of the technological tools assigned to the Player for the performance of the Esports Activity within the scope of the Esports Performance Contract. In the event that the equipment is provided by the Esports Team, the Player is obliged to use the same and is responsible for the correct use and conservation of the tools received, except for normal wear and tear. Unless otherwise agreed in writing, the instruments are granted on free loan and the Player is obliged to return them upon request of the Esports Team or in any case and without delay at the end of the Sports Performance Contract.

If the Sports Performance continues after the expiry of the term and the renewal or extension of the Contract is not communicated to the ULPA-CFP within said deadline, from the first day after the expiry, the Contract itself is to be considered subject to the current regulations on labor law.

Professional Sports Performance Contract

In addition to what is provided for in the Sports Performance Contract, the contract with a Professional Player must meet the following requirements:

a) the economic treatment must be adequate to the full-time commitment of the Professional Sports Performance Contract. Furthermore, it must be at least equal to the remuneration provided for by the collective agreement of the relevant sector. In the absence of a specific collective agreement, the compensation must be at least equal to the wages for similar or analogous tasks and in any case not less than the average territorial wage as regulated by the current legislation related to the divisor of the collective agreement of the Services Sector;

b) the notice of communication of the withdrawal from the contract by the Esport Team, in the event of unsatisfactory performance or results of the Player, cannot be less than fifteen days.

Amateur Sports Performance Contract

In addition to what is provided for in the Sports Performance Contract, the contract with an Amateur Player must meet the following requirements:

a) the economic treatment must be fair and adequate to the part-time commitment of the amateur Sports Performance Contract. Furthermore, it must be at least equal to the remuneration provided for in the collective agreement of the relevant sector. In the absence of a specific collective agreement, the compensation must be at least equal to

wages for similar or analogous tasks and in any case not less than the average territorial wage as regulated by the current legislation related to the divisor of the collective agreement of the Services Sector;

b) the notice of communication of the withdrawal from the contract by the Esport Team, in the event of unsatisfactory performance or results of the Player, cannot be less than ten days.

Amateur Sports Performance Contract

In addition to what is provided for in the Sports Performance Contract, the contract with an Amateur Player must meet the following requirements:

a) any gross annual remuneration cannot exceed the sum of Euro 5,000.00 (five thousand). In the event that this sum is exceeded, the parties must conclude a Professional or Amateur Sports Performance Contract;

b) the notice of communication of the termination of the contract by the Esport Team, in the event of unsatisfactory performances or results of the Player, cannot be less than five days.

Prizes for results achieved in Esports Competitions and national and international competitions

The Player and the Esport Team who have concluded a Sports Performance Contract may establish in the Contract itself the amount of the winnings due to each other for obtaining results in Sports Competitions or in competitions of any kind, even if held in foreign countries. Any subsequent agreements unfavorable to the Player will be null and void and may only be applied upon any renewal of the Contract; any termination of the Contract, for any reason or title, followed by the conclusion of a new Contract within sixty days of termination, will not have effect on the amount of the percentages indicated below.

Unless expressly agreed:

a) the winnings obtained in individual competitions will be due for eighty percent to the Player and for the remaining twenty percent to the Esport Team;

b) the winnings obtained in team competitions will be due to each Player, in the amount of eighty percent divided in equal parts among the Players who have actually carried out their Sporting Performance in the team that obtained the winnings, and for the remaining twenty percent to the Esport Team;

c) where an independent prize is provided for the Esport Team as a whole, as in the case of the so-called constructors’ championships, the winnings obtained will be due for eighty percent to the Esport Team and for the remaining part to each Player, in the amount of twenty percent divided into equal parts among the Players who have actually carried out their Esport Performance in the formation that obtained the winnings themselves.

The percentage, if expressly indicated in the contract:

a) of the eighty percent referred to in letters a) and b) may be decreased to thirty percent;

b) of the eighty percent referred to in letter c) may be increased up to ninety percent.

The division of non-divisible or non-easily divisible premiums is regulated in each Sports Performance Contract

Remote Sports Performance

The Sports Performance may be rendered partially or totally in a remote manner and carried out using IT tools provided by the Team Esport or available to the Player.

The Esport Team is responsible for the safety and proper functioning of the technological tools assigned to the Player for the performance of the Esport Activity. In the event that the equipment is provided by the Esport Team, the Player is obliged to use the same and is responsible for the correct use and conservation of the tools received, except for normal wear and tear. Unless otherwise agreed in writing, the instruments are granted on free loan and the Player is obliged to return them upon request of the Esport Team or in any case and without delay at the end of the Esports Performance Contract.

If the Esport Team opts to use instruments supplied to the Player, it accepts the related risks, without being able to impose control methods on such instruments, with the exception of those relating to security and confidentiality checks of any databases used remotely. It is the Player’s responsibility to maintain the technological conditions relating to their equipment in use on the basis of which the authorization for use was granted.

Should technical impediments arise that do not allow the execution or continuation of the remote work activity, the Player will be allowed immediate admission to the Esport Team headquarters.

The remote Player is protected, equally and according to the methods provided for other Players, against accidents and occupational diseases that may arise from risks connected to their work activity carried out at the workplace agreed and authorized by the employer.

The remote Player is also protected against accidents occurred during the normal return journey from the place of residence to the place agreed and authorized by the Esport Team for the performance of the Esport Performance outside the company premises.

Minor Players

From the age of sixteen, with the prior consent of those exercising parental authority or the guardian, it is possible to carry out Esports Activities provided that the health, safety and morality of the Players are fully guaranteed and that this does not negatively affect their education and training.

Pursuant to Article 21 of Law 9 December 2022 n.164, by delegated decree, the above threshold may be lowered to the age of thirteen, after consulting the Esports Team and Player organizations, if any, providing for special precautions to ensure that the Esports Activity does not negatively impact the fulfillment of school obligations and their education and training.

The Esports Performance Contracts are signed by those exercising parental authority or by the guardian.

In any case, underage Players may not be assigned to, nor practice, Esports Disciplines that have a Pan European Game Information (PEGI) classification incompatible with their age.

Player Safety

The Esport Team is responsible for the obligations regarding health and safety in the workplace provided for by Law 18 February 1998 n.31, and subsequent amendments.

By delegated decree, on the proposal of the Esport Commission, rules for bureaucratic simplification may be issued for Esport Teams, in compliance with high standards of protection of the safety and health of Players.

The worker has the obligation to cooperate with the Esport Team in order to identify and address the risks associated with the performance of the work in the workplace chosen and agreed with the employer and in the implementation of the prevention measures established.

Team Esports

The Team Esports is constituted and managed by an Amateur Sports Association or by a Professional Sports Company or by a Sports Company with the aim of continuously participating in Sports Competitions in one or more Sports Disciplines.

For the performance of its activitiesof a technical, administrative and/or Sporting nature, the Esport Team may avail itself of the services of employees or self-employed workers, in compliance with the current provisions of law on employment, as well as of Esport Players and Operators as defined by the Code.

The Esport Team, primarily in the person of its Coach, provides Players with technical instructions and prescriptions aimed at achieving the Esports goals.

The Esport Team may adopt a code of ethics and conduct, binding for its Players and its staff, which must be inspired by principles of honesty, loyalty, integrity, fair play, transparency, as well as the rejection of cheating, doping and match-fixing practices.

An Amateur Sports Association, a Professional Sports Company or a Sports Company may transfer the management of an Esports Team established or managed to another entity, provided that compliance with the existing contractual obligations is guaranteed. The transferor and transferee will be jointly liable for all obligations towards private and public entities, as well as towards the State, arising at the time of the transfer.

Amateur Sports Associations

Amateur Sports Associations are organized groups of a private nature:

a) which do not pursue profit-making purposes;

b) which are governed by a statute drawn up in paper or electronic format, to be kept at the headquarters of the Association also in electronic format with qualified electronic time validation (in the event that the dates of the paper version and the electronic version do not correspond, the one in the electronic version will be valid);

c) which one joins, and from which one withdraws, voluntarily;

d) whose social positions are accessed by election, in compliance with their own statute and any reference rules if affiliated to a Sports Federation;

e) with legal personality and registered in the Register referred to in Article 23 (Register of Associations, Companies and Sports Enterprises);

f) required to comply with the rules that regulate the associations with regard to accounting, including the obligation to prepare the balance sheet, the maintenance of the list of members and the minutes;

g) who can enter into Amateur or Amateur Sports Performance Contracts;

h) who can enter into Professional Sports Performance Contracts only with the prior positive opinion of the Sports Commission.

The Sports Associations undertake to make the national Players available to the respective Sports Federations, or, in their absence, to the Sports Commission, to be part of the relevant teams.

Professional Sports Clubs

Professional Sports Clubs:

a) participate in Sports Competitions of any type;

b) may enter into Professional and/or Amateur Sports Performance Contracts;

c) must be established in the form of a joint stock company or limited liability company, in accordance with Law 23 February 2006, n.47, and subsequent amendments;

d) must be registered in the Register of Associations, Companies and Sports Enterprises;

e) constitute or manage an Esports Team.

In carrying out their activities, they are required to apply the principle of Esports and economic solidarity in favor of amateur Esports with particular attention to youth sectors.

The following regime applies to professional Esports Companies, in derogation of Law 23 February 2006 n.47 and subsequent changes:

a) the amount of capitalmust not be less than Euro 2,500.00 (two thousand five hundred/00);

b) contributions of share capital must be made in cash, up to the minimum amount provided for by the Code, and must be paid into a credit institution of the Republic of San Marino within sixty days of acquiring the status of Sports Enterprise;

c) company shares may be differentiated by categories previously identified in the articles of association and the bylaws. If different categories of shares are created, the company can freely determine their content, but all shares belonging to the same category must confer equal rights.

The attribution of the Status of Sports Company determines:

a) exemption from paying the operating license tax;

b) payment of the registration tax on all corporate documents in the fixed amount of Euro 70.00 (seventy/00).

For anything not expressly provided for by the Code, the provisions of the Code apply to professional Sports Companies. pursuant to Law 23 February 2006 n.47 and subsequent amendments.

Register of Associations, Companies and Sports Enterprises

The Register of Associations, Companies and Sports Enterprises is established at the Esports Commission.

Registration in the Register of Associations, Companies and Sports Enterprises is mandatory to access the provisions of the Code as an Esports Operator pursuant to the Code itself.

Registration is annual and occurs by sending to the Esport Commission a Communication drafted and sent following the procedure established by the Esport Commission with its own resolution.

Exemption for resident amateur players

The compensation up to €5,000.00 (five thousand/00) per year paid by Team Esport to resident amateur players, temporarily or permanently, pursuant to the provisions of the Code or Laws 28 June 2010 n.110, 27 June 2013 n.71, 7 August 2017 n.94, 29 September 2017 n.115, 23 December 2020 n.223 and subsequent amendments or by Delegated Decree 13 January 2019 n.101 and subsequent amendments, are exempt from the tax referred to in Law 16 December 2013 n.166 and subsequent amendments.

This benefit also extends to compensation of up to €5,000.00 (five thousand/00) per year paid by Team Esport to resident Coaches and Technicians, temporarily or permanently, pursuant to the provisions of the law or Laws 28 June 2010 n.110, 27 June 2013 n.71, 7 August 2017 n.94, 29 September 2017 n.115, 23 December 2020 n.223 and subsequent amendments or by Delegated Decree 13 January 2019 n.101 and subsequent changes.

Compensation exceeding €5,000.00 (five thousand/00) and up to €12,000.00 (twelve thousand/00) per year, paid by Team Esport to Amateur Players, Coaches and Technicians, are subject to a rate of 1.5%.

Nature and purpose of the Esports Federations

The National Esports Federations are non-profit entities that can assume legal personality on their own initiative or upon proposal of the Esports Commission, in both cases with a resolution of the latter.

The National Sports Federations:

a) are equipped with technical, organizational and management autonomy;

b) are subject to the supervision of the Esport Commission;

c) can promote, organize and coordinate, in collaboration with the Esport Operators, national and international Esport activities and Esport events based on compliance with the Code, further regulations, the principles of ethics, fair play, loyalty, honesty, transparency, integrity, good game;

d) promote and organize initiatives and projects for the diffusion of the Esports culture, the enhancement and development of therelated competitive activity, the fight against its pathological forms and gambling;

e) are responsible for the organization and enhancement of Esports in the relevant Esports Disciplines;

f) contribute to the technical, psychological and physical preparation of the Players within the individual Esports Disciplines, monitoring their health and safety;

g) designate the Players of the national Esports Teams for participation in international competitions;

h) carry out the classification of Coaches, technicians, doctors, match officials, collaborators and all others participating in the federal Sports Activity;

i) operate in harmony with the resolutions and directions of the Sports Commission and any international Federations to which they may join if they receive a positive opinion from the Sports Commission.

Location and types of Sports Disciplines

The National Sports Federations must have their headquarters in the territory of the Republic of San Marino and are made up of Sports Associations, Professional Sports Clubs, Sports Companies and Players.

The National Sports Federations are established within the genres to which the video games on which each Sports Discipline is based belong, so each National Sports Federation will include one or more Sports Disciplines belonging to the same genre even if based on different software.

Sports Companies

In order to determine favorable conditions for the birth and development of Sports Companies, to create the best conditions for the operation and management of the company itself. For anything not expressly provided for, the Team and Associations title will apply.

Sports Companies:

a) can participate in Sports Competitions of any type;

b) can conclude Professional, Amateur or Amateur Sports Performance Contracts;

c) can perform the services typified by the Code.

Subjective requirements and objective requirements for the classification of Sports Companies

The company that intends to obtain the status of “Sports Company” and obtain registration in the appropriate section of the Register of Associations, Companies and Sports Companies must possess the following objective and subjective requirements:

a) carry out its activity mainly in the Sports sector, in strict compliance with the provisions of the Code and in reference to the cases provided for therein. In particular, each Sports Company must at least:

i. have established or manage an Esports Team; and/or

ii. perform at least one of the following roles referred to in the Code: Broadcaster, Distributor, Owner or Manager of an Esports Room or Gaming House, Organizer, Developer;

b) carry out its activity continuously and not occasionally;

c) carry out its activity with at least one management and operational headquarters located in the territory of the Republic of San Marino;

d) be a company under Sammarinese law established as a limited liability company or joint stock company;

e) explicitly provide for the activity or activities referred to in point a) in its corporate purpose.

Checks relating to the maintenance of the requirements of an Esports Company

The checks relating to the maintenance of the requirements for registration in the Register of Associations, Companies and Esports Companies are carried out by the Esports Commission.

In the event of the lack of even one of the requirements relating to the Esports CompaniesEsportive, to the Subjective and Objective Requirements for the Classification of Esports Companies, the Esports Commission assigns to the Esports Company a peremptory deadline for the restoration of the requirements equal to thirty current days, after which the Esports Commission decides to lose the status of Esports Company.

Within thirty current days of the communication of the loss of the status of Esports Company, the company must decide to go into voluntary liquidation, unless it complies with the provisions of Law no. 47/2006 and subsequent amendments.

After the 30-day deadline has elapsed without success, the Economic Activities Office reports the company to the Law Commissioner for the activation of the official liquidation procedures.

Regulation applicable to Sports Enterprises

The attribution of the Status of Sports Enterprise determines:

a) exemption from payment of the operating license tax;

b) payment of the registration tax on all corporate deeds in the fixed amount of Euro 70.00 (seventy/00).

For all aspects not expressly regulated in the Code, the current legislation on limited liability companies or joint stock companies applies, where compatible.

Employment contract for employees of Sports Companies

In order to support the start-up of Sports Companies, a fixed-term employment contract for Sports Companies is established with the following characteristics:

a) has a maximum duration of thirty-six months, including renewals;

b) can be used by the company for a maximum of ten employees. The limit of ten employees refers to the simultaneous presence of personnel with this type of contract.

At the end of the fixed-term employment contract for employees of Imprese Esportive, the company has the right to continue the employment relationship with the employee who has used this type of contract for the maximum period foreseen, with one of the forms of hiring provided for by the San Marino legislation.

For anything not regulated, reference is made to the general legislation on fixed-term subordinate employment.

Contributory tax relief for Players and employees of Imprese Esportive

The State promotes Esports activity also by providing tax relief for Players and employees of Esports Companies according to the terms and methods that will be defined by delegated decree.

Special residence permit for employees and players of Esports Companies, as well as for their family members

Article 17 of the Delegated Decree of 13 June 2019 n.101 applies to employees and Players of Esports Companies.

Employees and Players applicants for this special residence permit must submit a written request to the Gendarmerie – Foreigners’ Office, showing a passport or equivalent document deemed valid by the Gendarmerie and attaching the documents referred to in Article 17 of Delegated Decree 13 June 2019 n.101, with the exception of the employment contract referred to in Article 14 of said decree, in place of which they must produce the subordinate employment contract, for Sports services stipulated with the Sports Company.

The residence permit is issued by the Gendarmerie – Foreigners’ Office.

The duration of the residence permit is one year and is renewable annually. The holder of a special residence permit for employees and players of Sports Companies is allowed to enroll in study or professional training courses.

The maximum number of special residence permits for employees and players of Sports Companies is fifty per year for 2023; for subsequent years the maximum numberis provided for in the definition of entry flows into the territory.

A foreigner in possession of a residence permit for employees or Players of Sports Companies who intend to request the issue of a special residence permit for their family members, Article 19 of the Delegated Decree of 13 June 2019 n.101 applies.

Residence for directors and members of Sports Companies

Directors and members who are employees of Sports Companies can request, for themselves and for their family members, as identified in Article 19 of the Delegated Decree of 13 January 2019 n.101, the residence to the Permanent Council Commission for Foreign Affairs, Emigration and Immigration according to the provisions of Law 28 June 2010 n.118 and subsequent amendments.

Properties for Sports Use – Gaming House

The Sports Company can allocate a Property for Sports Use (Gaming House), in which the Players and, possibly, the technical and/or administrative staff can be domiciled or reside, carry out training and carry out Sports Activities.

Developers

Where the requirements set out in the Code exist, a legal person under San Marino law that develops software to be used as: may register in the Register of Associations, Companies and Sports Enterprises, in the capacity of a Sports Enterprise and in compliance with the requirements set out in the Code,

(i) Sports Discipline, or essential component for the functioning of a Sports Discipline, and/or

(ii) management system for Sports Competitions and/or Gaming Houses and/or Sports Halls.

In addition to the provisions, the main software development studio must be located in the territory of the Republic of San Marino.

Distributors

Where the requirements of the Code exist, the legal person under Sammarinese law that provides the distribution service of the software to be used as:

(i) Sports Discipline and/or

(ii) management system of Esports Competitions and/or Gaming Houses and/or Esports Halls.

In addition to what is provided for, the main management studio for the distribution of the software must be located in the territory of the Republic of San Marino.

Broadcaster

Where the requirements of the Code exist, it can register in the Register of Associations, Companies and Esports Companies, as a Esports Company and in compliance with the requirements for this purpose provided for by the Code, the legal person under Sammarinese law that provides the service of broadcasting Sports Competitions.

In addition to what is provided for, the main management and broadcasting studio of Sports Competitions must be located in the territory of the Republic of San Marino.

Caster management company

Where the requirements of the Code exist, the legal person that manages the commentary and analysis service of Sports Competitions provided by the Caster.

The provisions regarding the Sports Performance Contract are extended to Casters, where applicable. Under penalty of nullity, the Contract concluded with each Caster must:

a) make explicit reference to the Sports Performance Contract;

b) make explicit reference to the type of contract chosen, based on the relationship established with the Caster;

c) be called “Cocontract for the provision of Caster services in the Esports sector”.

Organizers

A Sports Competition can be organized exclusively by:

a) a natural person who is a citizen of San Marino or who is resident in the Republic of San Marino;

b) a legal person under the law of San Marino or who has a permanent establishment in the territory of the Republic of San Marino;

c) a foreign natural or legal person who delegates a subject referred to in letter a) or b).

If the Sports Competition requires the payment of registration or participation fees, even for the mere viewing of the same, and/or the awarding of one or more prizes, the Competition itself may be organized exclusively by a Sammarinese economic operator or by a recognized Sammarinese association, including Sports Associations, Sports Companies and Sports Enterprises; such subjects may also act as delegates of the subject referred to in letter c).

The Organizer and its delegate are jointly liable for violations of the Code and current legislation committed in the context of a Sports Competition.

A Sports Competition may be organized by multiple subjects, who will be jointly liable in relation to any obligation or offence arising from their role as Organizer.

Sponsor

With a delegated decree, on the proposal of the Sports Commission, provisions may be issued aimed at encouraging sponsorship activities of Esports Competitions.

Owners and managers of gaming and Esports rooms

Where the requirements set out in the Code exist, a legal person under Sammarinese law that manages a property dedicated to the performance of Esports Activities, including training and the performance of Esports Activities with exclusively recreational and non-competitive purposes, may register in the Register of Associations, Companies and Esports Companies as a Esports Company.

Owners and managers of gaming and Esports rooms are prohibited from and Esports, to use systems of any type used, even partially, for gambling, or in any case that are not predominantly based on the ability of players and participants to obtain results.

Race Officials

Race Officials may participate in the running of Esports Competitions to ensure their regularity. They carry out their functions in compliance with the principles of

Code and the Code of Ethics, in compliance with the principles of third-party, impartiality and independence of judgment.

Where the requirements of the Code exist, the legal person that manages the refereeing and management service of the Sports Competitions can register in the Register of Associations, Companies and Sports Enterprises, as a Sports Enterprise.

The provisions of the Code regarding the Sports Performance Contract are extended to the Race Officials, where applicable. Under penalty of nullity, the Contract concluded with each Race Official must:

a) make explicit reference to the Esports service contract;

b) make explicit reference to the type of contract chosen based on the relationship established with the Race Official;

c) be called “Esports Race Official Service Contract”.

Invitation letter

1The invitation letter referred to in Article 5 of the Delegated Decree of 22 January 2016 n.5 may be requested by the citizen, the foreign resident and the legal representative of the Sports Association, the Professional Sports Company or the Sports Companyalso for Sporting reasons.

Special residence permit for Sporting reasons

The special residence permit referred to in Article 9, letter b), of Law 28 June 2010

n.118 and subsequent amendments is issued to Players who carry out Sporting Activities with a regular Professional or Amateur Sporting Performance Contract at a Sporting Association, a Professional Sporting Company or a Sporting Enterprise, for a maximum duration of one year, with the possibility of renewal for the same period if the requirements for which it was issued persist released.

The requirements of article 8, paragraph 1 of the Delegated Decree of 22 January 2016 no. 5 are required for the release, with the exception of the written request for the release of a residence permit by the sports club to which the player belongs and approved by the sports federation to which the club belongs, in place of which a written request for the release of a residence permit by the Sports Association, Professional Sports Club or Sports Company for which the Player will perform his services will be required.

Without prejudice to the existence of bilateral agreements that regulate the matter differently, a foreigner in possession of a special residence permit for sports reasons is not entitled to the provision of free health services or any economic or welfare benefits by the Institute for Social Security and the State; the foreigner who intends to request such a permit is required to take out an appropriate insurance policy valid in the territory of the Republic of San Marino to cover the risk of illness, injury and maternity and to produce documentation certifying the availability of sufficient means for their subsistence and adequate accommodation for the entire duration of the stay.

The holder of a special residence permit for Sporting reasons is allowed to enroll in study or professional training courses.

The maximum number of special residence permits for Sporting reasons for 2023 is fifty. For subsequent years, the maximum number is established within the definition of the incoming flows into the territory.

Sports disciplines

The Esports Commission, within thirty days of its establishment, prepares the List of Esports disciplines recognized by the State, identified by name by reference to the name of the video game or software platform and the entity that markets it or makes it available.

The List of Esports disciplines is reviewed at least annually by the Esports Commission.

Sports Associations, Professional Sports Companies and Sports Companies may submit reports to the Sports Commission so that it can evaluate the inclusion of additional video games or platforms in the List.

Sports Competitions

Sports Competitions governed by the Code must be carried out exclusively in one or more Sports Disciplines of the Code (Sports Disciplines).

The possible use of video games and platforms not explicitly included among the Sports Disciplines in a Sports Competition, even if the Competition itself also provides for the use of video games or platforms recognized as Sports Disciplines will result in the total inapplicability of the provisions of the Code relating to the activities carried out on such video games and platforms not included among the Sports Disciplines, with the consequent applicability of the legislation in force regarding Games or other potentially applicable legislation.

The Sports Competitions:

a) must be carried out totally or partially in the territory of the Republic of San Marino, as provided for by the Online Sports Competitions, the Offline Sports Competitions and the Mixed Sports Competitions;

b) can be organized exclusively by one Organizer or by multiple Organizers;

c) must always be governed by a regulation made available before the opening of registrations for the Competition, which must contain at least the information in the Regulations of Sports Competitions;

d) must mandatorily provide for mechanisms for selecting participants and winners based on objective, neutral, transparent and non-discriminatory criteria;

e) must ensure that the selection of winners occurs exclusively on the basis of the ability of the Players in the Sports Discipline in which they compete. If the Sports Regulations provide that, in addition to the actions of other Players, there are interactions or decisions taken automatically by the software used that may influence the outcome of the Competition, the element of skill must still remain predominant and equal treatment must be guaranteed to all Players as well as the neutral and objective application of the rules;

f) must be carried out by adopting technical and organizational measures suitable for guaranteeing the correct functioning and security of the software, including its protection from unlawful alterations or modifications, with particular but not exclusive reference to protection from cheating;

g) may be open to the participation of minors, subject to the consent of those exercising parental authority or guardians. The age limit is set according to the PEGI – Pan European Game Information classification and in any case in compliance with any mandatory regulations that may be applicable in the specific case in relation to the use of video games and computer platforms by minors;

h) may provide for the payment of a registration or participation fee and/or the payment of one or more prizes, material or immaterial and of any nature and value, to the winners, in compliance with the provisions of the Prizes and verification of the regularity of the Esports Competitions subject to the obligation of communication. If even one of the conditions referred to in the letter occurs, only the following may be carried out:

1) after notification to the Esports Commission, in compliance with the provisions of the Communication of the Esports Competition organization; and

2) upon payment of the Tax for the organization of the Sports Competition;

i) must be supported by a surety in favor of the State Gaming Authority to guarantee the actual payment of the prizes to the winners, valid until the same prizes have been delivered and equal to the value of the prize pool, if:

1) the payment of a registration or participation fee greater than three euros for each Player is required; and/or

2) a prize pool of more than €50,000.00 (fifty thousand) is envisaged;

j) may consist of one or more events, even on a periodic basis;

k) may include restrictions on the selection of participants, who may be chosen in whole or in part by the Organizer;

l) may have a maximum duration of one calendar year;

m) are subject to the control of the Esports Commission, which may be carried out upon notification or ex officio.

Anything not explicitly provided for in the Code is subject to the current legislation on the operation of games, prize competitions, lotteries, lottery, games of chance and skill and betting, pursuant to Law 25 July 2000 n.67 and subsequent amendments, or to other applicable regulations.

Regulations of Esports Competitions

The Regulations of each Esports Competition must contain at least the following information:

a) name, economic operator code or VAT number and contact details, relating to both a physical address and an ordinary email address and a certified address, of the Organizer and its possible delegate in the territory of the Republic of San Marino;

b) indication of the Sports Discipline(s);

c) registration, participation and winner selection procedures;

d) Competition timing;

e) place of competitions, in the case of Offline or Mixed Sports Competitions, and location of the competition management system and related servers, in the case of Online or Mixed Sports Competitions;

f) registration and participation costs, if applicable;

g) exact indication of the prizes up for grabs, if any, and the relative prize money;

h) indication of the Association of social and solidarity volunteers or of the social and cultural Association, referred to in articles 4 and 5 of Law 16 June 2016 n.75, to which any prizes not awarded due to explicit refusal or negligent conduct of the regular assignee are to be donated.

The Regulations of the Sports Competition cannot be modified. Only the correction of material errors is permitted, after prior notice to all participants.

Communication of the Sports Competition organization

If one of the conditions set out in the Code applies, the Organizer, directly or through its delegate, sends the Sports Competition organization communication to the Esports Commission at least ten days before the opening of registrations or the start of the race or the first race if more than one race is scheduled (the deadline will be calculated with reference to the condition that occurs first).

The communication, to be sent via a certified electronic delivery system and signed with a qualified electronic signature, is drawn up by completing the form made available in electronic format by the Esports Commission. The following must be attached:

a) the Regulations of the Sports Competition;

b) explicit indication of the gross income expected for registration and participation (where applicable), of the gross total of the prize money (where applicable), or of their sum (where both are applicable);

c) copy of the receipt of payment of the Tax on Sports Competitions of the Code if the Competition is not exempt;

d) copy of the surety bond, where mandatory under the Code.

After the deadline has elapsed without the Esports Commission having made any findings, the Esports Competition may be held.

The Esports Commission may in any case detect any violations of the Code even during the Esports Competition and up to six months after its conclusion.

Online Esports Competitions

Esports Competitions may be held exclusively online, at the discretion of the Organizer, when Players participate from different locations via a telematic connection to the game server or servers; in any case, the Players cannot be in physical areas or buildings made available by the Organizer.

Online Sports Competitions:

a) are carried out using Competition management systems located in the territory of the State, from which it is possible to remotely control any servers located outside the territory itself;

b) can be open to participation from anywhere in the world; the verification of the legitimacy of the Competition in the States from which participation is granted, as well as any responsibility in this regard, is the responsibility of the Organizer.

The Organizer must keep track, through log files, of the registration, participation and selection of winners operations, in compliance with the current legislation on the protection of personal data.

Offline Sports Competitions

Offline Sports Competitions can be held exclusively in ao o more physical locations, located in the territory of the State, in which the Players can compete in one or more Sports Disciplines.

Offline Sports Competitions:

a) are necessarily held in the territory of the State;

b) require the simultaneous physical presence of the Players involved in each match or in the relative phases;

c) may require the payment of a sum to attend the Competitions themselves.

Mixed Sports Competitions

Sports Competitions are considered Mixed when they include, within the same Sports Competition, Online phases and offline phases.

In their respective phases, Mixed Sports Competitions must be carried out in compliance with the provisions of the Code for Online Sports Competitions and Offline Sports Competitions.

Advertising

Advertising of Sports Competitions must be inspired by transparency, loyalty and fairness.

The Organizer must always make available on a web page, the address of which must always be indicated in the advertisement, the information useful to each potential Player to understand at least the rules, the operating mechanisms, any registration and participation costs, and any prizes up for grabs, with an indication of the prize pool. This information must be easily available at least up to thirty days after the regular conclusion of the Sports Competition. The aforementioned web page must also contain a link to the Sports Competition Regulations and a link to the information on the processing of personal data.

Sports Competition Tax

Sports Competitions that require registration and participation for a fee, even for the mere viewing of the same, and/or the awarding of one or more prizes, are subject to the payment of the Sports Competition Tax in the amount of 12% (twelve percent), based on the figure resulting from the gross income expected for registration and participation (where applicable), from the gross total of the prize money (where applicable), or from their sum (where both are applicable).

If the actual gross income is higher than that expected and indicated in the Communication, the Organizer is required to pay the difference within fifteen days of the conclusion of the Sports Competition.

If the prize money exceeds the sum of Euro 50,000.00 (fifty thousand/00), the awarding of prizes must take place with the assistance of a Notary authorized to practice the profession in the territory of San Marino.

In Sports Competitions, the Organizer is required to allow access to the places used for Sports Competitions, including the places used for the control and management of IT equipment, at any time. moment and for the entire duration of the Competitions themselves.

Prizes

The Organizer may offer legal prizes, including sums of money.

It is always forbidden:

a) offer prizes that are illicit or contrary to public order or belonging to the following product categories: alcohol, weapons, explosives, drugs, tobacco;

b) request sums of any kind from the winner for the attribution or delivery of the prize: all related charges, taxes and costs of any kind included, must be borne by the Organizer.

The exclusions do not include immaterial representations integrated into the software used for the Sports Discipline of the Sports Competition in which the winner participated, such as functional or aesthetic virtual objects otherwise named as long as they are included in the aforementioned software.

Prizes consisting of material goods must be supported by the ordinary guaranteerather than provided for the sale to the consumer of goods belonging to the same product category.

The quantification of the value of a prize must be carried out on the basis of the market price calculated in the imminence of the filing of the Regulations of the Sports Competition.

Awarding of prizes

The awarding of prizes must conclude with the drafting of the Award Report drawn up:

a) by the Organizer, under its own responsibility, when the amount of the winnings in cash or in kind does not exceed the total value of Euro 50,000.00 (fifty thousand/00);

b) under penalty of nullity, with the assistance of a Notary authorized to practice the profession in the territory of San Marino, when the amount of winnings in cash or in kind exceeds the total value of Euro 50,000.00 (fifty thousand/00); this sum may be changed by delegated decree.

The Minutes must include:

a) the personal details and personal data of the Organizer or of the person legally representing him or his delegate;

b) the certification of compliance with the Regulations of the Sports Competition and of the conformity of the documentation produced by the Organizer with respect to the Regulations themselves and to

what can be ascertained from viewing the Sports Competition and/or from publicly available information;

c) compliance with the provisions of the Code or any irregularities found, including failure to comply with one or more provisions of the Code.

The minutes must be produced in electronic format, signed by the Notary with a qualified electronic signature and sent by the Notary to the Esports Commission via certified delivery system within fifteen days of the conclusion of the Sports Competition.

Failure to comply with the provisions will result in the nullity of the awarding of prizes and, in the most serious cases, the invalidation of the Sports Competition, with the imposition of the sanctions provided for in the case of an illicit Sports Competition.

Delivery of prizes and identification of players

The prizes must be delivered to the winners within thirty days of the conclusion of the Sports Competition, using the contact details indicated at the time of registration. In the event of explicit refusal by the winners or their negligent conduct, the prizes will be awarded to the Association of social and solidarity volunteers or to the social and cultural Association, referred to in Articles 4 and 5 of Law 16 June 2016 n.75, indicated in the Regulations. In the event of refusal by the Association itself, the Organizer will have to identify another Association, subject to a positive opinion from the Esports Commission.

Winnings of cash prizes or goods with a market value equal to or greater than €5,000.00 (five thousand/00) are delivered to the winner upon identification and acquisition of a recognized identity document. Winnings may be paid exclusively to the owners of the winnings themselves. Sports Associations, Professional Sports Companies and Sports Companies may directly receive the portion of the prizes to which they are entitled in accordance with the Code, upon presentation of the relevant documentation.

Conclusion of the Sports Competition and legal deposit

For each Sports Competition that requires registration and participation for a fee, even for the mere viewing of the same, and/or the awarding of one or more prizes, within fifteen days of the conclusion of the Sports Competition, the Organizer must deposit the following documents with the Sports Commission, by sending an electronic communication via certified delivery service:

a) completed form certifying the regular conduct and conclusion of the Sports Competition;

b) copy of the Sports Competition Regulations;

c) minutesand drawn up by the Organizer, where applicable.

The Organizer must keep for two years from the end of each Sports Competition the log files relating to all transactions carried out by participants and Players, adopting the appropriate technical and organizational measures in accordance with the current legislation on the protection of personal data.

Anyone who violates the rules is subject to an administrative fine equal to double the sum between the revenue actually collected and the prize pool.

Payment of the fine does not exempt the subject obliged from the deposit.

The administrative sanction is reduced to a measure of one tenth if the Organizer provides for the deposit after the expiry of the deadline, provided that the violation has not yet been contested.

Sports Tribunal and mandatory conciliation attempt

The Sports Tribunal is established, with a conciliatory function, at the Esports Commission. Its operation is governed by the Sports Justice Regulations approved by the same Commission within one hundred and fifty days of its establishment.

It carries out its functions in compliance with the principles of third-party, autonomy and independence of judgment and evaluation.

The Sports Court appoints one or more substitute Sports Judges in the event of replacement of the incumbents for reasons of incompatibility or inappropriateness.

Legal disputes between Players, Sports Federations, Sports Associations, Professional Sports Clubs, Sports Companies, Organizers, for any violation of the Code, must be preceded, under penalty of inadmissibility detectable ex officio, from the experiment of a mandatory conciliation attempt before the Sports Court.

Each proceeding has a maximum duration of sixty days from receipt of the appeal, extendable to one hundred and twenty in cases of particular complexity.

The statutes and regulations of legal entities, as well as the contracts stipulated with the Players, must contain the provision of the mandatory conciliation attempt before the Sports Court.

The Sports Court can act as an international arbitrator for the settlement of disputes in matters of Esports.

The Sports Court has no jurisdiction over doping, which will be subject to specific regulation with a Delegated Decree, on the proposal of the Sports Commission.

Sports Justice Regulations

The Sports Justice Regulations, approved by the Sports Commission, govern the general rules of the conciliation procedure and provide for:

a) the principles, the rules for access to the Sports Justice process and the administrative organization at the Sports Commission;

b) the procedural rules;

c) any administrative costs for the conciliation attempt;

d) the costs for carrying out international arbitration procedures.

The provisions do not apply in cases of participation of Players, Sports Associations, Professional Sports Companies and Sports Companies in competitions and championships already regulated by international regulations recognized by the Esports Commission.

Protection of personal data

The Code does not apply to issues relating to the protection of personal data, which remain governed by current legislation.

The Authority for the protection of personal data, also on the proposal of the Esport Commission, may issue guidelines on Esports aimed at simplifying the obligations for Esports Operators and promoting Esports, as well as ensuring that the processing of datapersonal data carried out in the Sports sector is carried out in compliance with fundamental rights and freedoms, as well as the dignity of the interested party, with particular reference to confidentiality, personal identity and the right to protection of personal data.

Intellectual property

1. Matters relating to intellectual and industrial property do not fall within the scope of the Code, which remain governed by current legislation, except as explicitly provided for in the Code.

Maternity protection

The Sports Performance Contracts and other employment relationships provided for in the Code can never derogate from the current legislation on maternity protection and from the provisions of the Council Decree of 30 May 2019 n.87.

The coordination between the aforementioned disciplines will be carried out by decree.

Interventions to support the family

Law 14 September 2022 n.129 (“Interventions to support the family”) applies to all Sports Performance Contracts and all employment relationships provided for in the Code.

The coordination between the aforementioned disciplines will be carried out by delegated decree.

Promotion of good gaming

The State recognizes the positive aspects and potential of Esports and video games to promote socialization, learning, acquisition of skills, economic development. At the same time, the State takes note of their potential negative aspects connected, in particular, to their abuse, to their use in age groups lower than those for which video games are intended and to defamatory and discriminatory conduct, as occurs, more generally, in reference to the use of information and communication technologies.

The State promotes initiatives to promote knowledge of video games and Esports, encourage their conscious use and direct it towards good gaming, as well as combat discriminatory and defamatory practices.

Gambling in the Esports sector

The Code does not regulate and does not authorize or legitimise any form of gambling related to Esports, the regulation of which does not fall within the scope of the Code. Gambling is defined as the exercise, both on a stable and occasional basis, of any activity not falling within the scope of the Code aimed at obtaining winnings or the payment of prizes in money or in kind when the outcome does not depend predominantly on the skill of the participants.

The State promotes initiatives to combat gambling in the Sports sector, with particular but not exclusive reference to the protection of vulnerable people and those belonging to the younger age groups.

Health protection and suitability for sports practice

Health protection in favor of all practitioners of sports activities is insured by the State, according to the law, through the structures of the Institute for Social Security (ISS) or at accredited and authorized private health facilities.

For the purposes of health protection, Players who carry out Sports Activities within the activities organized by Sports Associations, Professional Sports Clubs and Sports Companies, may be periodically subjected to checks on their specific suitability for the Sports Discipline they intend to carry out or carry out.

Until the issuing of guidelines or regulations shared at international level in the field of Esports, the assessment of suitability for the practice of Sports is optional and is determined on the basis of the assessments of the certifying Sports doctors in relation to the issuing of ordinary certificates of suitability for the practice of sports not competitive.

Doping and Cheating

It is expressedIt is forbidden to use any substance or medicine aimed at artificially increasing the Player’s performance and efficiency in a manner contrary to what is commonly accepted in the context of Esports activities.

It is expressly forbidden to use any software or hardware device aimed at altering the correct functioning of the software used in the Esports Competition to artificially increase the Player’s performance and efficiency.

If the violation is ascertained, the Organizer will expel the Player and the Esports Team from the Esports Competition, invalidate the results achieved by them and will be obliged to return any prizes won. The Organizer may take legal action to obtain compensation for damages suffered.

Jurisdictional protection

All disputes regarding the application of the provisions of the Code are under the jurisdiction of the ordinary judicial authority in civil matters, without prejudice to the prior attempt at conciliation and without prejudice to the provisions of the following paragraph.

The provisions of the Esports Commission may be challenged before the ordinary judicial authority in administrative matters.

Judicial disputes between Players, Federations Sports, Sports Associations, Professional Sports Companies, Sports Companies, Organizers, must be preceded, under penalty of inadmissibility detectable ex officio, by the experimentation of a mandatory conciliation attempt before the Sports Court.

Complaints

Anyone who believes they have been harmed by the violation of a provision of the Code may, alternatively, file a formal complaint to the Sports Commission or appeal to the ordinary judicial authority.

Under penalty of inadmissibility, the complaint must be filed using exclusively the forms made available by the Commission Esport.

Complaint Decision

Once the complaint has been received and the preliminary investigation has been carried out, if the complaint is not manifestly unfounded and there are grounds for taking action against one or more Esport Operators, the Esport Commission notifies the Operator or Operators of the start of the procedure.

The complaint procedure is governed by the internal regulations of the Esport Commission.

The complaint is decided by the Esport Commission with a provision motivated within one hundred and twenty days from receipt of the complaint. This term may be extended up to a further ninety days, if the case is particularly complex.

Inspections

The Esports Commission may order access to computer systems, archives and paper and digital databases, as well as other inspections and checks in the places where the Esports Competition takes place or where it is necessary to carry out surveys that are in any case useful for monitoring compliance with the discipline set out in the Code. A specific report is drawn up on the occasion of such accesses, inspections and checks.

The checks are carried out by personnel of the Police Forces. The Esports Commission and the same Police Forces will conclude specific operational protocols. In any case, the competence of the Gendarmerie Corps of the Republic of San Marino in matters of prevention and combating cybercrime phenomena remains unchanged.

The investigations, if carried out in a home or in another private residence or in the relative appurtenances, are carried out with the informed consent of the owner or manager. In the absence of such consent, the investigations must be authorised by the Authority

Judicial Authority which must provide with a reasoned decree without delay from receipt of the request from the Export Commission, if the necessary urgency of the investigation is documented.

Opposition

Against the provsanctioning decisions issued by the Esports Commission, the sanctioned Esports Operator may file an objection with a jurisdictional appeal to the Administrative Judge within the peremptory term of thirty days from the date of communication of the provision or within sixty days if the Operator itself has its registered office or resides abroad.

The objection does not suspend the execution of the provision.

The appeal is decided with the procedure referred to in Title II of Law 28 June 1989 n.68 and subsequent amendments.

Esports Commission

The Esports Commission is established, which:

a) has the task of promoting Esports, of monitoring compliance with the principles, purposes and provisions of the Code;

b) exercises supervisory, regulatory and sanctioning powers in the Esports sector and towards Esports Operators.

Within three months of its establishment, the Esports Commission shall adopt its own internal regulations.

The functions of the technical-administrative secretariat of the Commission Esports are entrusted to the Economic Activities Office.

Composition, resolutions and operation

The Esports Commission is a collegial body composed of five members, including the President, appointed by the Great and General Council, who preferably have knowledge or qualifications or professional experience in the field of Esports, or in any case knowledge, qualifications or experience in the field of Esports, law, communication and digital media, information technology. The Authority remains in office for a period of five years and each member cannot be renewed more than once. The appointment is incompatible with the office of member of the Great and General Council and with the offices in the governing bodies of trade unions and trade associations as well as with the office of president or secretary of political parties and movements.

The members of the Esports Commission are appointed as follows: the President on the proposal of the Secretary of State with responsibility for Sport, two members on the proposal of the majority Council Groups, two members on the proposal of the minority Council Groups.

The members elect from among their number the Vice President, who assumes the functions of the president in the event of his impediment or absence.

The compensation and attendance fees of the members of the Esports Commission are determined by a specific Decree Delegate and defendants on a specific expenditure item to be established by Budget Law.

The Esports Commission normally meets at least every two months, in person or by videoconference. It is convened by the President whenever he deems it necessary. Secretaries of State, Esports Operators, public and school managers and directors, consultants or experts may be invited to participate in the meetings in relation to the matters of their competence included in the agenda of the meetings.

The resolutions of the Esports Commission are taken by a majority of those present at each meeting, whose minimum legal number is four members. In the event of a tie, the vote of the President or, in his absence, of the Vice President prevails.

The members of the Esports Commission are required to declare any conflicts of interest in relation to each issue discussed and to abstain from the related deliberations.

Tasks of the Esports Commission

In addition to what is provided for by specific provisions, the Esports Commission:

a) monitors and supervises the activities carried out by the Esports Operators and the Esports Competitions, within the scope of what is provided for by the Code;

b) carries out checks on the correct exercise of sector activities, determining and applying sanctions in the event of failure to comply with the rules;

c) examines complaints and reports;

d) takes action on appealspresented by Esports Operators;

e) acts as an Esports Tribunal for the mandatory conciliation attempts;

f) presents to the Secretary of State with delegation for Sport an annual report on the status of Esports activities, which he reports to the Great and General Council;

g) provides assistance in obtaining the status of an Esports Company and issuing any authorization for the exercise of activities related to the Esports sector;

h) monitors the effectiveness of laws that directly or indirectly influence the Esports sector and carries out or commissions studies, research or sector surveys necessary for this purpose;

i) provides information and issues guidelines in the field of Esports, also on the basis of surveys carried out;

j) promotes dissemination, training and updating activities for both Esports Operators and citizens;

k) collaborates with government bodies and can present to the Congress of State, through the Secretariat of State with delegation to Sport, proposals and observations regarding the legislative discipline in Esports matters, taking into account the international evolution of the matter;

l) ensures the maintenance of the Registers and archives referred to in the Code, also in relation to deposits. To this end, it may avail itself of the administrative support of the Economic Activities Office;

m) examines the reports received regarding alleged violations of the rules contained in the Code and applies the sanctions provided for therein;

n) cooperates with the health facilities and bodies responsible for the protection of athletes’ health and for the prevention of doping, adopting useful initiatives to prevent and repress the use of substances and methods that alter the performance of athletes in carrying out sports activities;

o) exercises the other powers provided for by the Code.

The Esports Commission may access to the data held by the competent offices of the Public Administration pursuant to Law 5 October 2011 n.159, in order to acquire the information necessary to carry out its duties and to ascertain the truthfulness of the substitute declarations produced, also by directly accessing the archives or databases of the office competent for producing the relevant certifications.

The Esports Commission may avail itself, where necessary, of the collaboration of other State bodies for the performance of its institutional duties.

Representation in court

The Esports Commission is represented in court by lawyers of the free forum.

Illegal Sports Performance Contract

Violation of the Sports Performance Contract entails the imposition of an administrative sanction equal to double the Player’s gross annual remuneration, with a minimum amount of Euro 12,000.00 (twelve thousand/00).

Illegal Sports Competition

The Organizer is required to pay the administrative sanction if a Sports Competition that provides for registration or participation, even for the mere viewing, for a fee and/or the winning of prizes of any value, is carried out in violation of one or more of the Sports Competitions).

Each violation entails the imposition of an administrative sanction of between Euro 500.00 (five hundred/00) and Euro 5,000.00 (five thousand/00). These sanctions are increased up to fourfold in cases of extreme severity.

Security measures

The Organizer must implement technical and organizational measures suitable for guaranteeing the security and correct functioning of the software used in each Sports Competition for the execution of the Sports Discipline, as well as the related accessory IT systems. Taking into account the atknowledge of the subject and the economic value of the Competition, calculated on the basis of the sum of the revenues deriving from the registration or participation costs and the gross prize money, these measures must guarantee an appropriate level of security with respect to the risks of the software itself.

Failure to adopt the measures will result in the imposition of an administrative sanction of between €1,000.00 (one thousand/00) and €20,000.00 (twenty thousand/00).

Unsuitable or insufficient adoption of the measures will result in the imposition of an administrative sanction of between €500.00 (five hundred/00) and €10,000.00 (ten thousand/00).

The penalties are increased up to three times if the value of the competition is greater than €250,000.00 (two hundred and fifty thousand/00).

Violation of tax obligations relating to Sports Competitions

Failure to pay or insufficient payment of the Code tax, where due, is punished with a surcharge equal to the tax evaded plus interest at the market rate increased by two percentage points. The surcharge is reduced by a quarter if the payment of the tax occurs before the violation is ascertained.

A delay of more than thirty days in paying the tax is punishable by a penalty equal to 20% (twenty percent) of the tax due plus interest at the market rate increased by two percentage points.

The person responsible for ascertaining and applying the sanctions referred to in the preceding paragraphs is the Director of the Tax Office.

An appeal may be lodged against the official assessments or rectifications of declarations and the assessments of formal irregularities in the manner and within the time limits set out in Law 28 June 1989 n.68.

The verification of violations is subject to a three-year limitation period starting from the day on which the violation was committed.

The taxpayer who has unduly paid taxes not due may request their reimbursement within six months from the day of payment, under penalty of forfeiture.

Application procedure

With the exception of the sanctions for Violations of tax obligations relating to Competitions Esportive, Administrative Sanctions are imposed by the Esport Commission following the following procedure.

The Esport Commission, having verified the existence of one of the violations, notifies the Esport Operator concerned of a provision to initiate the sanctioning procedure, assigning the Operator itself a suitable deadline, with a maximum duration of six months, within which to remedy the contested offence, where possible, and within which to send its own defence brief. Within this period, the recipient of the request must demonstrate that he/she has carried out the necessary formalities and document compliance with the provisions of the Code.

After the deadline has expired and any defence brief produced has been examined, the Export Commission:

a) if it considers that the infringement has been remedied, it closes the proceedings with its own reasoned act, and may apply a sanction not exceeding one fifth of that provided for by the provision temporarily violated;

b) if it considers that the infringement continues, it imposes the sanction.

If the Esports Commission deems that one or more violations of exceptional gravity exist, since they are seriously detrimental to the interests protected by the law or because they are the subject of a repeat offence, it may proceed directly and immediately to adopt appropriate sanctioning measures, in order to put an end to the illegitimate conduct, even in derogation of the procedure.

A repeat offender is anyone who, after having been the subject of one or more of the sanctioning measures, carries out, within a period of three years from the last conduct, further conduct of the same nature.

Gambling in the context of Esports Competitions

Anyone who, in the context of a Sports Competition or committing fraud regarding its character as a Sports Competition or in the context of an online competition or event that, although not constituting a Sports Competition according to the Code, has the essential characteristics thereof, organizes, manages or carries out gambling activities in violation of the Code and the legislation in force, is punished with arrest from the first to the third degree or with a fine from €1,000.00 (one thousand/00) to €100,000.00 (one hundred thousand/00), based on the seriousness of the violation and the amount of the sums collected.

The Law Commissioner orders the cessation of the activity by adopting the precautionary measures of the case including seizure, also for evidentiary purposes, and confiscation of equipment, instruments or documents; the provision of the Law Commissioner is immediately enforceable despite the appeal.

When the criminal offence is carried out by a Sports Company, in addition to the sanction, in the event of a repeat offence, the loss of the status of Sports Company and of all the benefits and incentives possibly obtained in application of the Code is applied, with immediate cancellation from the Register of Associations, Companies and Sports Companies, in addition to the confiscation of the goods, tools, equipment and proceeds deriving from the abusive exercise of the activity.

To guarantee the execution of the pecuniary obligations, the Law Commissioner may order the seizure of movable property present in any capacity in the place where the violation occurred.

The accused or anyone with an interest may offer adequate bail in lieu of seizure.

Legal entities assume the role of civilly liable party for the execution of pecuniary sanctions and the fulfillment of other obligations imposed on their legal representatives, administrators or managers for non-compliance with the law. Liability is joint and several and without the benefit of prior discussion.

The accessory sanction of suspension of business activity is placed directly on the legal person.

Failure to comply with provisions of the Esports Commission

Anyone who, although required to do so, fails to comply with a provision issued by the Esports Commission shall be punished with imprisonment from six months to three years.

Rules transitory

Until the issuance of the Code of Ethics and the Guidelines, the general principles of the Code shall apply.

Until the establishment of one or more National Sports Federations, the related tasks shall be carried out by the Esports Commission.

Until the Esports Commission or other competent body pursuant to the Code has made available the forms or modules to be filled in for sending communications to be drawn up in this way, each Esports Operator shall send the communication on its own headed paper, indicating what is required in the applicable provisions of the Code.

The activities of digital content creators will be provided for and regulated by a delegated decree.

Guidelines for drafting standard Sports Performance contracts and standard contractual clauses

Each Sports Performance contract must clearly and precisely indicate at least the following elements:

1. type of Sports Performance Contract (professional, amateur or dilettante);

2. detailed statement of the identification details of the Parties and the prerequisites for the stipulation of the chosen type of contract;

3. method of execution of the Sports Service;

4. indication of the performance of activities connected to the Sports Activity in compliance with the Code, such as advertising activities, including through social networks, public appearances and sponsorships;

5. indication of the fees and payment methods. In the case of a Pre-amateur sports station, the commitment to stipulate a Professional or Amateur Sports Service Contract must be agreed in the event that the compensation exceeds the gross amount of Euro 5,000.00 (five thousand/00) per year;

6. indication of the person responsible for defining and implementing the training program and technical and competitive management.

Guidelines for drafting Esports competition regulations

The Esports competition Regulations must have the following minimum content:

1. name, economic operator code or VAT number and contact details, relating to both a physical address and an ordinary email address and a certified address, of the Organizer and its possible delegate in the territory of the Republic of San Marino;

2. indication of the Sports Discipline(s) on which the Sports competition will take place, as well as any software not recognized as Sports Disciplines that will be used in the same event but which will be excluded from the Sports competition;

3. registration, participation and winner selection procedures;

4. duration and calendar of the Competition;

5. place of the competitions, in the case of Offline or Mixed Sports Competitions, and place of location of the competition management system and related servers, in the case of Online or Mixed Sports Competitions;

6. where applicable, registration and participation costs and related amount;

7. where applicable, costs for attending the Sports competitions, determined precisely in their amount;

8. exact indication of the prizes up for grabs, if any, and the related prize pool;

9. indication of the Association of social and solidarity volunteering or of the social and cultural Association, referred to in articles 4 and 5 of Law 16 June 2016 n.75, to which any prizes not awarded due to explicit refusal or negligent conduct of the regular assignee are to be donated;

10. indication of the address of the web page where the information is reported.