Betting Providers Without Tax in Germany 2024

If you are also looking for such bookmakers, then in this material you can find out which sites are that do not charge tax on sports betting.

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Today, betting providers without tax in Germany enjoy high user popularity. This is because betting enthusiasts do not have to allocate their financial resources to sports betting taxation. If you are also looking for such bookmakers, this material will help you discover platforms that do not charge taxes on sports bets. Below, we present in tabular form a list of bookmaker platforms where sports betting is tax-free.

In the following sections, we will delve deeper into the descriptions of the listed bookmakers to provide a more convenient comparison.

All Tax-Free Betting Providers in 2024

Many bettors wonder, “Are sports bets tax-free?” Familiarizing yourself with the brief overviews of some betting providers will help answer this question.

1xBit

This sports betting platform, established in 2016, holds an official license from Curacao, ensuring its legitimacy. The website complies with all regulations and standards set for the gambling industry. A standout feature is its cryptocurrency transactions, supporting Bitcoin, Ethereum, Litecoin, and over 25 other cryptocurrencies. This ensures a high level of security and privacy thanks to blockchain technology.

The platform offers a wide range of sports for tax-free sports betting. Bettors can place bets not only in advance but also live during matches, adding extra excitement. Payments can be made via cryptocurrency wallets or fiat money. To enhance winning chances, various bonuses and special promotions are available for active players. A welcome bonus of 100% on deposits is offered. The optimized mobile app ensures accessibility from any gadget. Customer support is available 24/7 via online chat, phone, and email. Downsides include not offering high odds for all sports and complex betting requirements for certain rewards. Nevertheless, it remains a top tax-free betting provider.

Bet365

Founded in 2000, Bet365 has become one of the most popular platforms due to its extensive selection of sports and events for betting. It allows real-time betting during match broadcasts. Licensed in multiple countries such as Malta, Gibraltar, and Denmark, the platform operates legally.

Bet365 offers an appealing bonus program and tax-free sports betting. A mobile app is available for frequent users. Various payment options include bank cards, transfers, and e-wallets. Advanced cybersecurity measures ensure user safety. Customer support is available 24/7. Disadvantages include less favorable odds at times and lengthy verification processes.

Bet3000

With a Maltese license obtained in 2009, Bet3000 legally provides services, attracting many bettors with its tax-free sports betting. The platform offers a wide range of sports and a bonus program in Germany that includes nearly all types of bonuses, enhancing winning potential. Convenient access is available through the official website, mobile version, or app. SSL encryption technology ensures secure financial transactions. The platform supports various payment methods, including Visa, Mastercard, PayPal, and Skrill, without transaction fees. Customer support is available 24/7 via online chat, email, or phone.

Winamax

Established in 1999, Winamax holds a license from the French gambling authority ARJEL and authorization to operate in Germany. The platform offers over 20 sports, including football, tennis, and basketball, ensuring a wide selection. Above-average odds increase potential winnings, and live betting during broadcasts adds excitement. A welcome bonus doubles the initial deposit up to €100 as free bets. Customer service is available 24/7 via online chat, phone, and email, with quick response times.

Neobet

Launched in 2018 with a Maltese gambling license, Neobet operates in many countries, including Germany. It offers popular sports like football, basketball, and tennis, with competitive and above-average odds. A well-developed mobile app ensures constant accessibility. Tax-free winnings allow users to avoid additional financial costs, making Neobet one of the best platforms for sports betting.

How Betting Providers Calculate Betting Tax

The calculation of betting tax by providers is usually automatic and directly deducted from the gross winnings. In Germany, for instance, the betting tax is set at 5% and can be applied in various ways. Some providers deduct the tax directly from the stake, meaning that the player pays the tax when placing the bet. This results in the potential winnings being reduced by that amount.

Other providers, such as Betway, only deduct the betting tax in case of a win. In this case, the 5% is taken solely from the gross winnings if the bet is successful. If the player loses the bet, no tax is applied.

Example:
If you place a €100 bet with odds of 2.0 and win, your gross winnings will amount to €200. The 5% betting tax will be €10, leaving you with a net profit of €190. These different approaches can significantly affect your potential winnings.

Calculation Examples

Below are two sample calculations to illustrate how payouts differ for bettors with a 5% betting tax.

Without Betting Tax:
First example: Tax-free sports betting. Calculating the gross winnings: stake €30, odds 1.5. The payout for the player will be €30 x 1.5 = €45.

With Betting Tax: Minus 5% of the Betting Amount
Second example: Betting winnings taxed at 5%.
We calculate the actual stake: €30 / 1.05 = €28.6.
In this case, the payout will be €28.6 x 1.5 = €42.9.

There is a noticeable difference between the two calculation methods. You can perform these simple calculations yourself to determine the differences.

Recommendations for Betting Provider Taxation

This section highlights some key aspects regarding taxation in betting providers:

• If the odds are identical, always opt for tax-free betting providers, provided you are satisfied with the platform’s other criteria, without making significant compromises.
• The higher the number of bets, the greater the profit difference in favor of the option with a 5% betting stake tax.
• The more sports bets you place, the more pronounced the overall discrepancies will be between the two calculation models, favoring the option with a 5% betting tax on stakes.
• A 5% betting tax on stakes is a much better option than a 5% tax on winnings. Therefore, it is in your best interest to use tax-free betting providers.

If you want to improve your financial outcomes, consider the points mentioned above when selecting and using sports betting platforms.

Additionally, it is advisable to carefully review the terms and conditions of betting providers to ensure that no hidden fees or additional taxes are applied. Some providers might introduce other charges to compensate for the lack of betting tax. Moreover, the transparency of the bookmaker is crucial. Reputable providers clearly inform users about applicable taxes and fees, which is a hallmark of a trustworthy platform.

Another important factor is the comparison of offered odds. Providers without betting tax often offer slightly lower odds to offset the missing tax. Hence, it is important to calculate the total return to make the best decision. Ultimately, the choice of the best bookmaker depends on your individual preferences and betting strategies. Considering tax aspects can help you benefit more from your bets in the long run.

Legal Basis for Betting Tax in Germany

Germany has a localized taxation system regulated by various laws that form the basis for gambling taxation. Below are the taxes outlined by German regulations:

1. State Tax Code: Covers all basic taxes, including profit taxes for betting providers.
2. Gambling Regulation Act: Responsible for licensing gambling platforms, ensuring compliance with regulations, data protection, and fair treatment of users.
3. Gross Revenue Tax Law: Calculates taxes based on the total amount of placed bets minus the player’s winnings. Some providers also offer taxes for professional gamblers. However, no such additional payment is required on tax-free platforms.
4. Federal Gambling Tax Law: Regulates all prescribed taxes for gambling businesses, including betting tax and its calculation conditions.
5. Betting Office Tax: Applied to the total stakes placed by website users. In Germany, this tax rate is 5%.

This extensive legislative framework ensures that all licensed gambling platforms are regulated by the authorities for compliance with the prescribed tax requirements. Therefore, it is essential to choose licensed betting platforms. It is important to note that unlicensed sports betting can lead to significant financial losses and legal proceedings.

Author

Thomas Schmidt