Taxation on Sports Betting in Germany

What is the Racing Bets and Lotteries Act (Rennwett- und Lotteriegesetz)?

This act was passed by the German legislator and came into force on 01.07.2012. This act subjects all sports bets (offline and online) to taxation at a rate of 5% of the stake wagered, which must be paid to the financial authorities. The Racing Bets and Lotteries Act does not only affect ODDSET but the entire sports betting market in Germany.

How does it affect the ODDSET customers?

For all bets lost, ODDSET will cover the entire taxation amount. Only in the case of won bets you will take a share in this tax burden (fee). This is calculated on the basis of the gross winnings (stake x odds x 5%).

How will this be reflected on the bet slip?

Your bet slip will, in addition to the odds and stake, also show:
- Possible winnings (gross)
- 5% fee (only applicable in the case of won bets)
- Possible winnings (net)

How does the Racing Bets and Lotteries Act work?

Here’s an example. Imagine you place a 10.00 EUR sports bet at odds of 2.00.
Should you win your bet, your winnings (gross) would be 20.00 EUR. In this case, your contribution to the tax burden will be 1.00 EUR (10.00 EUR stake x 2.00 odds x 5%). Your winnings (net) would therefore be 19.00 EUR. Should you lose your bet, ODDSET will cover the entire fee.

Please note that, also as a result of the taxation on sports betting, it is not possible to place bets with odds of less than 1.06.

The Racing Bets and Lotteries Act only affects sports bets.

For further information, please read our Terms and Conditions. For any further queries, please do not hesitate to contact our Contact.

Your ODDSET team