Register taxes on race bets, public lotteries and sweepstakes, and sports betting

If you wish to organise racing bets, public lotteries and lotteries or sports betting and this has been approved by the competent authority, you are obliged to register and pay the resulting tax with the competent tax office.

If you operate a totaliser or act as a bookmaker, or organize public lotteries and sweepstakes or sports betting, you must register and pay the race betting, lottery or sports betting tax. The race betting tax applies to bets made on horse races on a totalizer or with a bookmaker. A tax of 5% of the stake is payable on the bets placed. The lottery tax applies to public lotteries and lotteries organised in Germany. For domestic public lotteries and draws, the tax is 20% of the gross price of all lots.

The following are exempt from taxation:

  1. (a) where identity cards are not issued or (b) where the total price of the lots of a draw does not exceed the value of EUR 650, unless the organiser is a trader or travel trader within the meaning of trade law or that the winnings are wholly or partly in cash;
  2. Lotteries and lotteries approved by the competent authorities in which the total prize of the tickets of a lottery or draw a) in the case of lotteries and draws for exclusively charitable, charitable or ecclesiastical purposes, does not exceed the value of EUR 40,000, (b) in all other cases the value of EUR 240.

The tax liability arises in the case of lotteries and lotteries with the permit, but at the latest at the time when the approval should have been obtained. Sports bets from domestic and foreign providers that are organized domestically or where the player is resident in Germany are subject to sports betting tax. All sports bets made in Germany are taxed at 5% of the stake. Taxation also applies to sports bets that are concluded via the Internet. The tax liability arises in the case of sports betting when the bet has become binding. As an organiser of sports betting, if you do not have your place of residence or registered office in the EU or a contracting state of the EEA, you can appoint a tax officer in Germany. A tax officer can be someone who has his registered office in Germany, whose tax reliability has no objections and who insofar as he is obliged to do so under the Commercial Code or the Tax Code keeps proper commercial books and prepares annual financial statements in good time. The tax officer must fulfil your obligations as an organiser based abroad under this Act as his own. He has the same rights and obligations as you. The tax officer owes the tax for sports betting in addition to the organizer.

You can find out which documents are required from the responsible tax office.

  • Written form required: Yes
  • Personal appearance necessary: No
  • Written form required: Yes
  • Personal appearance necessary: No

The forms required for tax registration can be obtained from the Kiel Tax Office.

Preconditions

The public lottery, playing and the organisation of racing bets require a permit.

Related Links

  • § 10 Racing Betting and Lottery Act (RennwLottG)
  • § 11 Racing Betting and Lottery Act (RennwLottG)
  • § 17 Racing Betting and Lottery Act (RennwLottG)
  • Implementing Provisions of the Racing Betting and Lottery Act (RennwLottGABest)

If you operate a totalizer, your tax liability arises at the end of the acceptance of bets. If you are a bookmaker, your tax liability arises when the bet has become binding, but at the latest with the decision of the race to which the bet relates. For lotteries and drawers, you register the tax and pay it before you start selling lots. If you organize sports betting, your tax liability arises when the bet has become binding. You register the tax with the responsible tax office. There you will receive the necessary forms. Your tax declaration may be. the proof of tax. In this case, no separate decision will be issued by the tax office, only in case of deviations from your tax declaration.

Responsible for the content
Ministry of Finance Schleswig-Holstein

Last update or date of publication
08.03.2021