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Do you have to tax online casino profits or are they tax-free? We clarify!

Taxes are a painful topic for most people. There is probably no one who pays his taxes "voluntarily and". The good news for Occasional online casino players: your Profits do not have to be taxed if you play with a casino with EU license. However, if you are one Profispieler, you have to tax the profits. We explain to you where the border is drawn and how much you have to tax from the casino profit.

the essentials in brief
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Highly won? Do I have to tax my casino winnings now?

For the casino players, the question now arises: do we have to forward part of our profits to the tax authorities? The answer to this is quite clear at first: No, casino winnings are after § 4 No. 9b UStG generally tax -free. In practice, however, a distinction is made between leisure ripers and professional players - at least they try Tax offices to find this approach. You have to Casino profit Tax if you are classified as a professional player. So a little caution is the order of the day. You always have to make sure that you only play with providers with a valid EU license. The following regulations only apply to these!

Tipp: Take a look at our guide "Win online casino“ an.

Casino profits are tax-free according to paragraph § 4 No. 9b UStG

In general, occasional casino players do not have to tax their casino gains. At this point, the case law is clear. In Germany you have to im Online Casino do not pay taxes because it If there is no tax liability for profits from online casinos. This is because profits from a Online gambling according to § 4 No. 9b UStG are not defined as income.

Income from gambling, RubbleandefinedandandefinedLotto gains do not have to be taxed Unless the winner is a professional player. The legal situation is different if gambling is not operated as a hobby. Anyone who officially plays full -time and has no other income, but rather makes a living from gambling profits, may be subject to income tax. In this case, players have to tax their casino gains. However, the evidence is extremely difficult at this point. Even if the tax office tries to collect corresponding taxes, the customer can usually successfully defend himself against the tax authorities with an objection.

§ 4 No. 9b UStG: Overview of the legal situation for Germany
  • 4 No. 9b UStG: In Germany and the EU, casino profits are tax-free. It doesn't matter how high the profit amount is.
  • Only profits from casinos, arcades, Online casinos with EU license and lotteries are tax -free. Providers without EU license are not tax-free, here you have to tax the casino profit from abroad!
  • Professional players and professionals need income tax on profits to countif you live alone from gambling.
  • Only when with the win Interest income to be generated, taxes fall on them.

Also interesting: Gambling is allowed on the Internet and are Online Casinos legal? In the linked guide there is everything you need to know about the legal situation.

Casinos with EU license pay taxes to the state

If you play in an online casino, one valid EU license then has this casino by the corresponding Gaming authority checked and regulated. This makes sure that the casino is right. Among other things, this also includes that the casino pays taxes. The casino itself is a company. This has to pay for a corporate tax. A double tax burden is excluded.

Lottery & Gambling Act - you have to know that!
In Germany, the taxation of game offers is about that Racing competition and lottery network realized. This is divided into two important sections. In the first, the taxation of so -called racing betting (horse racing) is found. The second part is much more interesting for us gambling. Because in this become Lotteries, plays and sports betting treated. For sports betting, for example, 5% betting tax in Germany is used. Some bookmakers are already driving these tax on the betting submission.

Professional player vs. casual player: Who has to tax his casino winnings?

Hobby and casual players usually do not contest their income from gambling- regardless of the country the server is in. They usually pursue another activity. The tax laws are always based on the laws of the country, in which the player lives and has his residence. This type of player does not have to tax your casino winnings. The situation is different for professional players.

Is the game of chance regular income? That is the question!

For professional players, the German state argues that they play regularly and therefore also regularly make profits. In such cases, according to the state, the state no longer applies Gambling regulation. This means that from now on casino profits have to be taxed. On the other hand, professional players can also offset their losses with the profits like any other company. In the event of cases, it is recommended to be a precise bookkeeping. And Online casino payments should be listed meticulously.

The tax office decides on the basis of the following criteria:
  • Is it played regularly and often?
  • Does the profit be made of living or are there any further income?
  • Outweigh the profits or losses?

The answering of these questions depends on whether it is a professional player who has to tax his profits - provided the tax office comes out. Ideally, the professional therefore immediately reports a company and refrained from moving in an insecure gray area.

Winning outside the EU - you have to know that!
For example, if you visit a casino in Las Vegas when you visit your USA and win it up there, these profits are tax-free on site. You now have two options: you can squeeze the profit during your remaining vacation and make yourself a really nice time. Or you want to take the money back home to use it sensibly. Then you have to Register this money at the latest at the airport at the airport at customs. Provided it is an amount of 10,000 $ or higher. in this case you will have to pay an import tax. with online gambling providers from abroad without a license, you should generally not play. in addition to the risk of landing with a dubious provider that does not pay profits, there is a risk that your profit will be subsequently collected by the tax office or the tax authorities, since you have used an illegal offer.

Does a casino profit have to be reported to the tax office?

no For licensed in Germany Online bookmaker If there is a betting tax of 5%, which is to be worn by the bookmaker and in some cases the weather. With gambling it looks different Because there is no casino tax. Since profits from gambling are not a regular income, there is no income tax. This is also not about gifts, so the gift tax does not apply.

Users of online casinos do not have to report the profits to the tax office and expect high additional claims. This regulation applies to both casinos, who are based in europe, as well as for online casinos that are based outside the european Union.

However, there is a restriction for offline casinos that have their company head outside the european Union: the cash limit of 10,000 $ must be observed here. If this is exceeded, the process must be registered and import taxes are incurred on this sum. However, this only applies to profits that im Non-EU-foreign were generated.

Money transfer are not affected. There is a tax agreement with the corresponding state (the so -called Double taxation agreement), these taxes do not fall. For example, there is such an intergovernmental agreement between the Federal Republic and the USA. American citizens have to assign 30 percent of their profits made in the casino to the tax office. Citizens from Germany, USA or Austria, on the other hand, can keep their profits.

In these games you don't have to tax casino winnings

Incidentally, it doesn't matter which Online money games You play in an online casino. They are all tax -free. As long as you play in a casino with a valid license, you do not have to tax your casino gains. Regardless of whether you have your time at digital machines, at Roulette, at the BlackJack, at the Video poker or in Live Casino Send-casino gains are tax-free depending on the game.

Also worth reading - everything on the subject Online Blackjack USAandefinedandandefinedOnline Poker USA.

Casino profits tax in Austria: You must note this tax regulation

Tax legislation in Austria with regard to the casino profits can be summarized in one sentence. No taxes are due, regardless of whether your leisure or professional player is. This means, Players from Austria do not have to tax their casino gains. No matter how high they are. Further information is available in the guide “Online Casino Austria„.

Casino profits in USA are taxed: the tax rules for American gambling players

What about taxing casino gains in USA? New tax laws have been working in USA since January 1, 2019. These expand the previous tax laws, in which profits were considered tax -free of less than 1,000 USD. Because now there is a distinction in which type of offer players generated their winnings. Since the beginning of 2019 in the USA profits as taxablewhen they come from large games. This means automated, intercantonal or online gambling. In addition, profits that have been generated by online bookmakers, online casinos or online lotteries that offer their services outside of USA are generated. Almost all online casinos that have an EU license would fall into this category. In our guide too American online casinos You can find out more.

Little games or big games? Offer from USA or abroad?

Profits in USA can be tax -free if customers have made profits in American casinos or American sports betting providers. It is therefore important that it has to be local offers. Profits, which are less than 1 million American francsthen are considered tax -free. In addition, income from small games falls into the category of tax -free profits. So are small restaurants Lotteries meant from USA - relatively small local sports betting offers or small local poker tournaments. Important: These have to be offered locally in USA. The allowance of a maximum of USD 1,000 per profit applies here.

American tax authorities will be able to collect its casino taxes in the future

These regulations are intended to ensure that customers from USA only play with American casinos and casinos that have their headquarters in USA. The American Treasury also guarantees tax revenue from the online gambling. The collecting of such In the past, tax burdens in other EU countries often proved to be very difficult. Playing at international online casinos will make American people difficult in the future. For this purpose, technical blocks are introduced, which then block access to international online casinos with IP address from USA.

How high the actual taxation in USA is cannot then be evaluated. This depends on the tax player's tax class. Currently a few crystallize American casinos and providers out that will take over the online business in USA in the future. Profits of these will then be tax -free for American as long as the allowances apply.

What happens if the state changes the law?

Tax exemption in Germany refers exclusively to the profits achieved in gambling. Operations are still taxable. The player is not responsible for paying the betting and lottery tax But the organizer and thus the online casino.

There is an exception to participate in bets in foreign casinos. Then deutsche Online Casinos must pay the taxes. Other organizers demand that the game participant The due tax pays to the tax office when paying the tip itself - Even if it is a casino from the gray area.

The tax exemption of the income from gambling or bets described refers to the directly achieved profits. Later income generated by dividends or capital gains can be taxed with the corresponding flat -rate tax. But this legislation does not change the tax exemption from gambling contracts or betting. Politicians are calling for a reintroduction of wealth tax. In the case of a corresponding Amendment to the law would also affect profits from the credit of a betting profit or a lottery profit from this regulation.

The ministers of the individual federal states are currently negotiating to to establish a uniform gaming contract. Then a lot will change for us German gamblers. Not necessarily in terms of tax exemption, but rather towards limiting missions and German happiness. A new draft was already published in early 2020. The proposal only has to be signed and should then apply from July 2021. Among other things, a deposit and loss limit of 1,000 $ per person and a new authority including blocking file are introduced.

Professional players have to tax casino profits: professional poker players and taxes-an example

also Poker is one of the games of chance in Germany - just like sports betting or lottery. Since happiness is mainly decisive for success here, the income is tax -free - at least so far.

The famous German was correspondingly surprised Poker professional Eddy sharpWhen the Cologne Finance Court judged that he had to pay income tax on his poker profits in the future. The Münster Finance Court went one step further: According to his view, poker professionals even have to pay sales tax.

"Run stupid" - the exact scandal judgment against sharp
The Cologne judges justified their decision with the fact that Sharp won the prize money not due to happiness, but mostly thanks to his poker skills. The consequence of this: Poker is a skill and no gambling. according to the court, the players win with the best psychological and analytical skills. eddy scharf has been one of the most successful german poker players for almost 20 years now and he poker around the world. it is estimated that his sum obtained is at least in the six -figure range. and exactly this fact was fell on fatal: those who successfully participate in international and well -known tournaments with high prize money for many years is a professional player and must tax their profits accordingly. However, if a hobby player wins out of luck, the profits still remain tax -free.

The enemy lurks everywhere
The case of the Münster Finance Court was similar. The player took part in various cash games, internet events and poker tournaments within nine years. He made a living from the prize money won. He had taken unpaid vacation with his original employer. He did not state the poker gains in his income tax return. However, the player had not expected the tax office officials. Because while a tax office surfed employees on the Internet, he found a video interview with the man and thus became aware of his profits. In the subsequent audit, the tax office officials estimated his poker sales. The player then complained to this procedure, but the Münster Finance Court rejected the lawsuit. The player had performed a performance with the aim of winning money through his tournament participation. And therefore the poker player is to be regarded as an entrepreneur and therefore subject to VAT.

Attempts at fraud never pay off - tax fraud is not a cavalier offense!

And now among us: Actually, this professional can be happy that no intent was assumed. The question arises as to why he did not cancel his job, but was released. One might suspect that he thought that the regulation applies and that he deserves his main life support with a classic work. This assumption alone is wrong. Then to give an interview and to provide information about the actual profits in this information could be described as grossly negligent. In short: Please do not believe that you are a wiser as German laws, the German legislature and the law enforcement authorities. Tax fraud is not a cavalier offense.

If you win a lot or earn a lot, tax should not itch!
This is just like with successful people who pay the top tax rate. Just because they hand over almost half of their income to the state do not stop working. In the end, there is still enough left that the whole thing is worth. You should also see the taxation as a professional player: Either you win enough that you only smile mildly about this taxation. Or you are just not good enough to live alone from gambling. Trying to trick and be wiser than the tax office usually backfire.

Conclusion: As a casual player, you don't have to tax casino winnings

Once at the end of the guide, we remain two important points that we want to highlight again:

  1. It is important that you play with a provider who has a valid license. Then it doesn't matter how much you win, this Casino gains are always tax-free. Only if you achieve interest income with the winnings in the bank account will you have to tax these interest income.
  2. A professional player, on the other hand, has to tax his casino profits. This presupposes that he lives alone from gambling. Professionals have to do it Earn a lotthat they can cope with a high tax burden. As long as this is not the case Should no one play with the idea of becoming a professional player.

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