German tax on crypto casino winnings

The domestic structure

Under the German framework, licensed operators pay a turnover tax of 5.3% on stakes for virtual slots, online poker and sports betting. That is levied on the operator rather than the player, and casual players are generally not taxed on winnings from licensed German operators.

Where offshore differs

The operators ranked on this site are not licensed in Germany and do not pay that tax. The treatment of winnings from unlicensed offshore operators is a materially different question and depends on individual circumstances, including whether activity could be characterised as professional rather than recreational.

We are not going to state a position on that, because it depends on facts we do not have and because getting it wrong would be worse than saying nothing.

Crypto disposal is separate

Germany has its own treatment of private cryptocurrency disposals, with rules around holding periods that can affect whether a gain is taxable. Converting crypto to deposit, or converting a withdrawal back, may create a position independent of any gambling treatment.

Two separate questions with two separate sets of rules.

The bigger issue for German players is not tax

Where to check

The Bundeszentralamt für Steuern and your local Finanzamt are the authoritative sources. A German tax adviser is the right answer if the amounts are meaningful.

General information only, not tax advice. We are not accountants and this is not a substitute for one. Rules change, individual circumstances differ enormously, and the only authoritative source is your national tax authority. Verify anything here before you rely on it.