# Are gambling winnings taxed in Germany?

> No, not for private players: winnings from games of chance such as slots, lotteries and sports bets aren't one of the types of income German income tax applies to, as the Federal Fiscal Court has long held. Instead, the state taxes the stakes: 5.3% on sports bets, virtual slot machines and online poker, owed by the operator, which may pass the betting tax on to you. Professional poker players can owe tax on their winnings as business income.

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## Key takeaways

- German income tax applies only to seven listed types of income (§ 2 EStG); gambling winnings aren't one of them.
- The Federal Fiscal Court (BFH, X R 43/12, 2015) confirmed that pure games of chance aren't taxable income, but found that winnings from poker played professionally can be business income.
- The Rennwett- und Lotteriegesetz taxes stakes instead: 5.3% on sports bets, virtual slots and online poker, owed by the operator.
- Sportsbooks handle the betting tax differently: some pay it themselves, others deduct it from winning bets or from every stake. That changes what a bet really pays.
- Interest or returns you earn by investing your winnings are taxed as normal investment income.

## The short answer

If you gamble for fun in Germany, your winnings are yours: there's no income tax on them and nothing to declare. German income tax only applies to the seven types of income listed in § 2 of the Income Tax Act (EStG), from employment and business to investments and rent, and winnings from games of chance aren't among them. The Federal Fiscal Court (Bundesfinanzhof) put it plainly in 2015: with a pure game of chance such as a lottery there's no taxable activity, because nothing is given in return for the winnings.

That covers jackpots on licensed slot sites, lottery prizes and sports betting winnings alike.

## What is taxed: the stakes

Instead of your winnings, Germany taxes what's staked, under the Rennwett- und Lotteriegesetz (RennwLottG), in force since July 1, 2021:

| Product | Tax | Owed by |
|---|---|---|
| Sports bets | 5.3% of the stake, net of the tax (§§ 17–18) | The operator (§ 19) |
| Virtual slot machines | 5.3% of the stake, net of the tax (§§ 37–38) | The operator (§ 39) |
| Online poker | 5.3% of the amount brought to the table or tournament (§§ 47–48) | The operator (§ 49) |

These taxes raised about €2.5 billion in 2025 together with the lottery tax, according to the GGL. Because the operator owes the tax, it decides whether to pass it on. On slots, it's built into the games' payout rates. On sports bets, it's visible: some sportsbooks absorb it, others take it from your winnings or your payout. Our [betting tax calculator](https://safebet.ai/de/sports-betting/betting-tax-calculator/) shows what that costs you on any bet.

## When winnings are taxable

The exception is gambling as a business. In the same 2015 ruling, the Federal Fiscal Court held that a player's winnings from poker tournaments were business income, because skill plays a large part in poker and the player played regularly and systematically to earn a living. If you play poker or bet professionally, talk to a tax adviser.

## Interest on your winnings

Once won, the money is like any other savings: interest, dividends or gains you earn by investing it are taxable investment income.

## Before you count on winnings

The tax-free status only matters on the occasions you win: over time, slots and betting cost players money. Set a deposit limit before you start, and if gambling stops being fun, call the free BIÖG helpline on 0800 1 37 27 00. Our [guide to gambling help in Germany](https://safebet.ai/de/guides/gambling-help-germany/) has more.

## Frequently asked questions

### Do I have to declare gambling winnings in Germany?

Not as a private player. Winnings from games of chance, including slots, lotteries and sports bets, aren't income under § 2 of the Income Tax Act, so they aren't taxed or declared. Any interest or investment returns you earn on the money later are taxable like other capital income.

### Who pays the 5.3% tax on sports bets?

The operator owes it under §§ 16–19 of the Rennwett- und Lotteriegesetz: 5.3% of each stake, net of the tax. Many pass it on: Betano and bet-at-home deduct it from winning bets only, and ODDSET keeps 5% of the gross return on winning bets, while Tipico and Winamax say they pay it themselves. Our [betting tax calculator](https://safebet.ai/de/sports-betting/betting-tax-calculator/) shows the difference.

### Are poker winnings taxable in Germany?

They can be, if you play professionally. In 2015 the Federal Fiscal Court held that a player's tournament poker winnings were business income, because skill plays a large part in poker. Recreational players aren't taxed.

### Are prediction market winnings taxable in Germany?

Prediction markets on political, economic or social events aren't licensable in Germany, and the GGL says taking part from Germany can be a criminal offence, so the question shouldn't arise. See [are prediction markets legal in Germany?](https://safebet.ai/de/guides/are-prediction-markets-legal-in-germany/)

## Sources

1. [Einkommensteuergesetz, § 2 (Umfang der Besteuerung)](https://www.gesetze-im-internet.de/estg/__2.html) — Bundesministerium der Justiz, accessed 2026-10-22
2. [Urteil vom 16. September 2015, X R 43/12](https://www.bundesfinanzhof.de/de/entscheidung/entscheidungen-online/detail/STRE201510277/) — Bundesfinanzhof, 2015-09-16
3. [Rennwett- und Lotteriegesetz](https://www.gesetze-im-internet.de/rennwlottg_2021/BJNR206510021.html) — Bundesministerium der Justiz, accessed 2026-10-22
4. [GGL Activity Report 2025](https://www.gluecksspiel-behoerde.de/images/pdf/jahresberichte/260907_GGL_Tatigkeitsbericht_2025-ENG_final%20.pdf) — Gemeinsame Glücksspielbehörde der Länder, 2026-07-03