Betting tax on sports bets in Germany: 5 percent explained

No. Betting with Tipico is not tax-free. Every sports bet placed in Germany with a licensed provider carries a betting tax of 5 percent. That applies at the Tipico betting shop and online.

At Tipico the tax is not included in the odds. It is calculated separately, so the odds on screen and on your betting slip are shown without the tax.

Some websites describe Tipico as tax-free or claim the tax is already built into the odds. Neither is correct for Tipico. If you are unsure how the tax affects a bet, ask at the counter before you hand in your betting slip.

The betting tax on sports bets in Germany is 5 percent. It is set out in the Race Betting and Lottery Act (RennwLottG).

The tax applies to all sports bets with providers licensed in Germany. That covers bets at the Tipico betting shop just as much as bets online. How to recognise a licensed provider is explained in the guide Is sports betting legal in Germany?.

At Tipico, the betting tax is not included in the odds but calculated separately. The odds you see in the shop, in the daily programme or at the terminal therefore do not contain the tax.

The binding rules are in the Tipico terms of participation. If you want to know how the tax works for a particular bet, ask at the counter in the Tipico betting shop.

At Tipico, the odds and the betting tax are two separate things. The odds are the multiplier for your bet. The betting tax is worked out on its own and does not change the odds.

Keep this in mind when you look at a possible payout. A sum based only on stake and odds leaves the tax out. Your betting slip and the Tipico terms of participation show how the tax applies to your bet.

How odds work in general is explained in Reading and understanding betting odds.

Staff at the counter in the Tipico betting shop can show you how the tax appears on your betting slip. The binding rules are in the Tipico terms of participation.

Check your slip before you hand it in. It lists your picks, the odds, your stake and the bet type. If anything is unclear, ask first. A step-by-step guide to the slip is in Filling in and placing a betting slip.

The betting operator pays the betting tax over to the tax office. You do not have to declare it or file anything yourself.

That does not mean the tax has nothing to do with you. At Tipico it is calculated separately for your bet, so it helps to know how it works before you place one.

In Germany, private betting winnings are usually not subject to income tax. That applies to winnings from the betting shop and from online sports betting. Betting privately now and then is not a commercial activity.

This article is not tax advice. If you bet regularly and on a large scale, ask a tax adviser. Individual cases can differ from the rule.

Yes. The 5 percent betting tax applies equally to bets in the betting shop and online. Both come under the Race Betting and Lottery Act.

How betting on site and online differ in other ways is covered in Betting shop vs. online sports betting. What is on your betting slip is explained in Filling in and placing a betting slip.

Yes. The 5 percent betting tax applies to every sports bet, whatever the bet type. Single bets, accumulators, system bets and live bets are all covered. The bet type does not change the rate.

The rate is also the same in every federal state, because the Race Betting and Lottery Act is federal law. Rules on opening hours or the location of betting shops differ from state to state. The betting tax does not.

The betting tax is one of the costs of betting, along with the bookmaker's margin built into the odds. Keep both in mind when you set your budget, and only bet money you can afford to lose.

Limits help you stay in control. How they work is explained in Loss and deposit limits. If betting is causing you problems, free advice is listed under Player protection and help. The BZgA counselling line on 0800 1372700 is free and reachable daily.