Is hosting social sports events a Hobby or a Business?

(Initiate)Initiate

7 Apr 2026

Hi I am looking to run a social sport event and was wondering if it could be counted as a hobby or if I need to set up a business. Ideally, I would not set up a business and run this as a hobby. Based on the success of the first event I will decide if I host more events in future (which is also why I would rather not create a business immediately).

relevant information

Looking to host a 1 day social sport tournaments in a gym which I will hire.
This means I would probably get public liability insurance for these events just in case.
If this event goes well I may host more events in future.
Payment by teams would be to cover court hire / public liability insurance.
I currently have an Instagram account. On this account I am not using my real name but a name for the event. I have applied for a TM for the Instagram account name via IP Australia as I like the name and would not want other sporting events to use it. I will know in a few months if it is successful. For the time being on the Instagram I have a TM symbol next to the event name in my bio.
Is it still a hobby if I make stickers, a website, promote the event and create an online free to play videogame ? I am aware there are people who run markets in Melbourne who use similar methods like building a page for their hobby which acts as a brand but are still classified as a hobby.
If the Instagram account which would represent this brand of social tournaments receives sponsorship deals (potentially discounts or free products) from brands or collaborates with other Instagram accounts, can it still remain a hobby ? I am aware of local sports 'crews' and hobby Instagram accounts which currently receive sponsorship but do not appear to be a business but more of a hobby.

Overall, this entire event and the account / brand I am creating is unlikely to make any real money beyond covering expenses or maybe small sponsorship. I am using this to create a community of people playing sport.

Kind regards and I would appreciate any guidance !

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JayATO

(Community Support)Community Support

8 Apr 2026

Hi @riyo92,

You need to self-assess whether your activity is a business or a hobby. Generally, a business is an activity you do with the intention to make a profit, while a hobby is something you do for fun.

To work this out, you'll need to consider all your activities together and look at factors like:

your intent
how you operate, and
whether you're running things in a business-like manner.

Based on what you've described, there are indicators that point towards this being a business. You're creating a brand with an Instagram account, applying for a trademark, potentially making a website and promotional materials, getting insurance, and possibly seeking sponsorships.

However, you've also said you're primarily covering expenses and building a community rather than making a profit. But the presence of planning, systems, and formal arrangements still aligns more closely with a business (rather than hobby activity).

Check out the info on our website about whether you're in business, including the side hustle guidance. These resources will help you work through the factors and make your own assessment based on your specific circumstances.

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riyo92

(Initiate)Initiate

8 Apr 2026

Thank you !

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