Germany Gambling Tax: What Bettors Need to Know (2026)

A Complex Picture: It Depends on the Gambling Type

Germany has one of the more complicated gambling tax situations in Europe. The rules differ significantly between sports betting, casino gambling, and lottery.

The short version:

• Sports betting: 5.3% tax on stakes (paid by operators, often passed to players)
• Casino winnings: Generally tax-free for players
• Lottery: Tax-free for players
• Professional gamblers: May face income tax

Let's break down each category.

The 5.3% Sports Betting Tax

Since July 2021, Germany imposes a 5.3% tax on all sports betting stakes placed with licensed operators.

How it works:

When you place a €100 bet:

• Operator receives €100
• Operator pays €5.30 to the government (5.3% of stake)
• Operator keeps €94.70 as the net stake

How it affects you:

Most operators pass this cost to players, either through:

1. Direct deduction: Your €100 bet only stakes €94.70 worth
2. Worse odds: Odds are reduced to account for the tax
3. Reduced promotions: Fewer bonuses to offset operator costs

Either way, the 5.3% comes out of your potential returns.

Example impact:

Without tax: €100 at 2.00 odds = €200 return, €100 profit

With tax (direct deduction):

• €100 bet, €5.30 deducted as tax
• €94.70 actually wagered at 2.00 odds
• Return: €189.40
• Profit: €89.40 (vs €100 without tax)

That's a significant edge reduction for professional bettors.

Tax-Free Casino Winnings

Casino gambling in Germany (online and land-based) is taxed differently. Players don't pay tax on casino winnings.

This applies to:

• Slot machines (Spielautomaten)
• Table games (roulette, blackjack, etc.)
• Live dealer games

The operators pay substantial taxes on their gross gaming revenue, but those taxes don't flow through to individual player winnings.

Important caveat: Germany's online casino market was only legalized in 2021 under the Glücksspielstaatsvertrag 2021 (GlüStV 2021). Use licensed operators to ensure proper legal treatment.

Online Poker

Poker in Germany exists in a regulated but restricted market:

• Must be played on licensed platforms
• Stakes and losses have limits
• Ring-fenced German player pool

Tax treatment:

• Casual players: Winnings are generally tax-free
• Professional players: May owe income tax (more below)

The lines between casual and professional aren't perfectly defined, which creates uncertainty for serious players.

Lottery: Tax-Free

German lottery winnings (Lotto 6aus49, Eurojackpot, etc.) are tax-free regardless of amount.

If you win €10 million in the Eurojackpot, you receive €10 million. The tax is embedded in the lottery system through operator contributions.

This is one of the clearest areas of German gambling tax law.

Professional Gamblers: The Gray Area

Germany may tax professional gambling income. If gambling is your:

• Primary occupation
• Regular source of income
• Conducted in a business-like manner

Then winnings could be classified as taxable income under German income tax law (Einkommensteuer).

Factors authorities consider:

• Volume and regularity of gambling
• Whether you have other employment
• Systematic approach vs. recreational play
• Dependency on gambling income

If classified as professional:

• Winnings become taxable income
• Normal progressive income tax rates apply (up to 45%)
• Losses may be deductible
• Business-related expenses may be deductible
• Registration as self-employed may be required

Most recreational gamblers won't face this issue. But high-volume sports bettors and poker players should consider their status.

The Glücksspielstaatsvertrag 2021

Germany's gambling landscape changed dramatically with the Interstate Treaty on Gambling 2021 (GlüStV 2021), which:

• Legalized online casinos nationwide for the first time
• Created a licensing framework for online slots and table games
• Maintained the 5.3% sports betting tax
• Introduced strict player protection measures

The treaty also created the Gemeinsame Glücksspielbehörde der Länder (GGL), the new gambling authority overseeing licensing and enforcement.

Using GGL-licensed operators ensures:

• Legal gambling
• Proper tax treatment
• Player protection measures
• Dispute resolution mechanisms

State (Länder) Variations

Gambling regulation in Germany has historically been a state matter, leading to some variation:

• Schleswig-Holstein: Briefly had its own licensing regime (2012-2013), some legacy licenses may still exist
• Most other states: Follow the GlüStV 2021 framework

For tax purposes, federal income tax rules apply uniformly. But operational restrictions may vary.

Land-Based Casino Taxation

Germany has many land-based casinos, from the historic Casino Baden-Baden to modern casinos throughout the country.

For players:

• Winnings are tax-free
• No withholding at the casino
• May need to show ID for anti-money laundering compliance

For large wins, casinos report to authorities for compliance purposes, but this isn't taxation.

Reporting Requirements

Recreational gamblers:

• No requirement to report gambling winnings
• Winnings don't appear on Einkommensteuererklärung
• No forms needed

Professional gamblers:

• Must declare gambling income
• Report on appropriate tax forms (Anlage G for business income or Anlage S for self-employment)
• May need to register as Gewerbetreibender

For anyone:

• Large cash deposits may trigger bank inquiries
• Document significant wins for source of funds questions

Practical Impact of the 5.3% Tax

For recreational bettors, the 5.3% sports betting tax is an annoyance but not necessarily a deal-breaker.

For serious bettors:

• The tax significantly reduces expected value
• A bet with 2% theoretical EV becomes negative EV after the 5.3% tax
• Professional sports betting in Germany is much harder than in tax-free jurisdictions
• Some serious bettors have relocated to avoid this tax

Comparison:

Germany's approach is notably harsh compared to other European markets.

Foreign Gambling

German residents gambling abroad face these considerations:

Within the EU: Most EU countries don't tax gambling winnings. Using EU-licensed operators generally maintains tax-free treatment.

In the US: American casinos withhold 30% from German winners' prizes above certain thresholds. Germany's tax treaty with the US may allow recovery.

Offshore/Unlicensed: Using unlicensed operators is illegal in Germany. Beyond legal risks, the tax treatment of winnings becomes unclear.

Common Questions

Is the 5.3% tax charged on winnings or stakes?

On stakes. It's a percentage of what you bet, not what you win.

Do I pay income tax on casino winnings?

Recreational players: No. Professional gamblers: Potentially yes.

What about poker?

Tax-free for recreational players. Professional poker players may owe income tax.

Can I avoid the 5.3% by using offshore bookmakers?

This is illegal. Using unlicensed operators violates German gambling law and could result in penalties. It also doesn't actually avoid the tax since you're simply moving to an unregulated market.

Do I report sports betting winnings?

Recreational players don't report. The tax is handled by operators.

What counts as "professional" gambling?

There's no bright-line test. Factors include volume, regularity, income dependency, and business-like conduct. When in doubt, consult a German tax advisor.

Key Takeaways

• Sports betting has a 5.3% tax on stakes (often passed to players through worse odds)
• Casino winnings are generally tax-free for recreational players
• Lottery winnings are completely tax-free
• Professional gamblers may owe income tax on winnings
• Use GGL-licensed operators for legal protection and clear tax treatment
• The 5.3% tax makes professional sports betting much harder in Germany
• State regulations vary but federal tax rules are uniform
• No reporting required for recreational gamblers

Sources:

• Gemeinsame Glücksspielbehörde der Länder
• Bundesministerium der Finanzen
• Wikipedia - Income Tax on Gambling
• GlüStV 2021