Online casinos in Germany: regulation and taxes

Online casinos in Germany: regulation and taxes (full text)

Short: What you need to know

Legal framework: Inter-land gambling agreement 2021 (Glücksspielstaatsvertrag 2021, GlüStV 2021).

Regulator: Gemeinsame Glücksspielbehörde der Länder (GGL) - operates at the level of all lands.

What is allowed online: licensed virtual slots and online poker; board games (roul ./blackjack) - by decision of individual lands (often - state monopoly or no private licenses are issued at all).

Key restrictions: a single monthly deposit limit for all operators, strict rules for slots (bet ≤ €1 per spin, ≥ 5 seconds per spin, ban on jackpots and auto-backs), centralized OASIS systems (self-exclusion) and LUGAS (monitoring).

Taxes: 5.3% of online slots and poker rates (for operators) + standard corporate income taxes; for players, winnings are usually not taxed (except for professional activities/special cases).

1) Legal framework and participants

GlüStV 2021 unified the land approach and opened up the possibility of a legal online market with strict measures to protect players. GGL is responsible for supervision: licensing, compliance, advertising, blocking unlicensed sites/payments, fines.

Supplementary Acts: Anti-Laundering Act (GwG), Data Protection Regulation (GDPR), Youth (JMStV), Consumer and Advertising.

2) What exactly is allowed and what is prohibited

Allowed (with German GGL license)

Virtual slot machines (online slots).

Online poker.

Sports betting (in separate licensing; in this article focus on casino verticals).

Questionable/By Land Solutions

Online board games (roulette, blackjack, baccarat): they can be in the state monopoly or even be closed to private operators. The situation varies by land.

It is forbidden

Jackpots and mechanics that reinforce the "excessive expectation of a big win."

Auto-spins, turbo modes, multi-slot parallel play.

Demo game without first checking age/identity.

3) Tough rules for slots and player protection

€1 maximum per spin.

≥ 5 seconds per spin (no turbo/accelerations).

Single monthly deposit limit for all operators (base €1,000). Increases are possible only after in-depth cost availability checks and with centralized accounting.

OASIS: nationwide system of self-exclusion (voluntary and compulsory - on the grounds of risk).

LUGAS: a central "hub" of monitoring through which limits, sessions and interaction between the operator and state supervision are controlled.

"Panic button": instant pause/self-exclusion for a short time (for example, 24 hours).

Reality checks: Regular pop-up time and spend notifications + mandatory pauses

KYC/AML: mandatory verification of identity and sources of funds at thresholds/risk signals; Data mapping for all operators.

4) Advertising and Marketing

Strict time windows and content restrictions (without appealing to quick enrichment, without targeting young people, restrictions on influencers/social networks).

Bonuses - allowed in moderate form and with full transparency of conditions; aggressive incentives and sticky mechanics that encourage excessive deposits are prohibited.

Brand/vertical separation and risk warnings are industry standard.

5) Taxes: how operators pay and what's with players

For operators

1. 5.3% on the turnover of bets (turnover tax) for online slots and poker - charged on amounts bet by players, not GGR.

2. Corporate taxation of profits: corporate tax (~ 15%) + solidarity tax (~ 5.5% of corporate) + trade tax (Gewerbesteuer, the rate depends on the municipality; total effective profit rate often ~ 30% ±).

3. VAT: Gambling turnover is usually exempt from VAT, but related services (B2B, marketing, etc.) - according to general rules.

💡 Practical effect: The 5.3% turnover model makes low-margin products (slots/poker) sensitive to math games and costs. Operators compensate by setting up a portfolio, margins and less "generous" bonuses.

For the players

Private winnings from legal gambling are usually not taxed in Germany (not treated as income) unless the game is professional/entrepreneurial in nature. For the "profession" (especially in poker), tax risks and practices may differ; in controversial cases, individual tax consulting is needed.

6) Licensing: operator requirements

German GGL license for relevant vertical (slots/poker).

Connection to LUGAS and OASIS, logging, reporting, auditing.

Content compliance: only approved providers/games, compliance with mechanics (bet/spin-time/no jackpots/auto-spins).

Data protection and cybersecurity: storage standards, logs, incident response.

Payments: work only through permitted PSPs; execution of GGL orders on payment blocks for "gray/black" sites.

Advertising: preliminary compliance control of materials; age-gating; prohibitions on cross-promos to prohibited verticals.

7) Enforcement and fight against the "gray market"

Domain block lists, requirements for access providers, actions against affiliates, fines.

Payment blocks against unlicensed operators.

Land coordination through GGL, centralized analytics through LUGAS.

8) Impact of regulations on product and economy

Game mathematics adapts to limitations (longer backs, different volatility, fewer "spikes").

Bonus policy is more restrained, with a focus on long-term retention rather than aggressive one-off promotions.

The cost of compliance is higher: integration, reports, audit, monitoring.

The user experience is slower and more structured, with noticeable stop lights and pauses.

9) Operator Roadmap

1. Model evaluation: legal entity/tax base, land/vertical selection.

2. Licensing in GGL: document package, RG/KYC/AML policies, LUGAS/OASIS integration.

3. Content and providers: compatible slots/poker only, audit mechanic.

4. Payments and IT: white channels, logs, DPO, ISMS, incident response plan.

5. Marketing compliance: media plan with time windows and age-gating, affiliate control.

6. Taxes and financial model: modeling taking into account 5.3% of turnover + effective profit rate; unit economy control.

10) Player FAQ

Is it legal to play online in Germany?

Yes - licensed operators (slots/poker). Check for a German license and signs of connection to OASIS/LUGAS.

Why is the back "long" and it is impossible to turn on auto-backs?

This is what the law requires: a minimum of 5 seconds per round, without auto modes, to reduce the risk of impulsive play.

Will my winnings be taxed?

Usually not for private players, but with signs of "professional" activity, exceptions are possible - in controversial situations, tax advice is needed.

Why are there few jackpots and "mega-wins"?

Jackpots are prohibited by slot content rules.

The German model is one of the most "defense-oriented" in Europe: tight restrictions on slot mechanics, uniform limits through LUGAS, instant OASIS self-exclusion and active GGL enforcement. The tax structure (5.3% of the turnover of rates + corporate taxes) forces operators to carefully consider the economy and build a product "at a distance." For players, this means a safer and more predictable environment, albeit with less "explosive" winning dynamics.