Taxation on bets

A few bookmakers may charge a “German tax” on your bets, depending on where you reside or where the bookmaker has its license.

There are different ways in how bookmakers handles this. Some takes 5% of the profit or 5% of the stake, others chose to completely ignore it (doesn’t charge any tax on your bets).

Two examples:

“For all bets lost, bwin will cover the entire taxation amount. Only in the case of won bets we will retain a 5% fee of the winnings (gross) to partially cover the tax burden.” We call this taxation of profit

“Stakes on sports bets made by customers with a permanent or habitual residence in the Federal Republic of Germany are subject to a taxation of 5% due to the Race Betting and Lottery Act of 1st July 2012. When placing a bet, 5% of the stake will automatically be deducted. The calculation of the possible winnings will be based on the reduced taxable betting stake.” We call this taxation of stake

We’ve developed a solution for this tax, and a filter setting is available where you can specify which taxation method (if any) that is applied to any bookmaker account. The arb percentage will then be adjusted accordingly, fully automatic of course. You can find this setting under Options – Bookmaker Setup.