Betting Tax in Germany
According to the Race Betting and Lottery Act (Rennwett- und Lotteriegesetz) adopted on 01.07.2012, a 5% tax of the bet amount is levied in favour of the tax authority. The tax is paid in case of win and applied only to sports betting. The sports tax rate applies to all players residing in Germany.
Tax amount is calculated by multiplying the gross profit by 5% and by dividing the result by the sum of 100% and 5% (Gross profit*5%/(100%+5%)).
For example: You place a bet of €10 EUR with the odds of 3. In case of a successful outcome, your gross profit will be €30 EUR. Thus, €1.43 EUR will be charged for tax payment (€30EUR*5%/(100%+5%)). Net profit will be €28.57 EUR. If the bet loses, the tax is paid by Stakers.