Legal German Poker Sites

Legal German / Deutsch Poker Sites?

Is Online Poker Legal in Germany?

The legal situation in Germany is messier than in most nations. The country is currently grasping at straws in an attempt to regulate the online gambling industry, which has only brought on criticism from international councils and governments.

In 2008, Germany enacted the Interstate Treaty on Gambling. The IToG was a hard-line prohibitionist attempt to cut off non-State gambling operations completely. The treaty made it:

• Illegal for businesses – both domestic and international – to offer gambling services online. This made it theoretically illegal for German poker sites to operate in any way.
• Illegal for private citizens to engage in gambling online.
• Illegal for gambling providers – except for state-owned gambling operations – to advertise on mass-media channels.

Basically, the Treaty attempted to annihilate any competition to existing State gambling institutions. Talk about a monopoly!

While the IToG is technically valid until December 2011, it has been widely condemned. In fact, the European Court of Justice recently declared the Treaty illegal under European law.

As a result of the ECJ ruling, European Union member countries are not bound to comply with the Treaty. This means that companies operating in EU countries outside Germany can operate legally in Germany under EU law. Foreign poker sites serving the German market are, for now, free to continue doing so legally.

This all makes for a really confusing situation. Basically, Germany says “no” to online gambling, while everyone else, including legislative bodies to which Germany is bound, say “yes”. This legal environment is obviously unsustainable.

Thankfully the Treaty is in the process of being revised, which could ease some legal tensions. A recent proposal suggested that Germany will offer up 7 online gambling licenses to companies who apply for them. Licensed gambling operators will be subject to a 20-30% tax on all wagers placed. These terms are obviously not ideal, but they would at least provide German residents with a legal way to gamble online.

Is it Safe To Play at German Poker Sites Online?

Despite facing incredibly restrictive gambling laws, Germans are still gambling online. In fact, one legal expert estimates that Germany is the second-largest online gambling market in the world. Looks like the laws banning German poker sites online haven’t been too effective.

A study conducted by German media firm Goldmedia concluded that the online gambling market – which according to the law should not even exist – has been growing 30% annually since 2005. So not only are Germans gambling online, they are gambling online more than ever.

This is confirmed daily on poker forums across the web, where scores of German players all say the same thing: though online poker is technically illegal, everyone knows the law is bogus, and everyone plays anyway.

So are you safe to play at German poker sites online? The answer is probably. The law is not on your side, but nobody seems to be enforcing the law. Plenty of poker sites operate in Germany, and many players use them. So while there may be a risk involved in playing, it is clearly not very high.

Must I Pay Taxes on Poker Winnings in Germany?

Trying to comprehend German tax codes is an exercise in masochism. Unfortunately, I don’t have either the level of self-hatred or the love of pain required to figure out what the heck is going on in these documents.

Word on the street is that “general” gambling winnings are not taxed in Germany. Meaning, winnings for recreational players are probably not taxable. However if gambling is a source of income for you – i.e. you are winning consistently at a game involving skill, like poker – your income is probably taxable. So a pro at the German poker sites would have to pay around 45% of his winnings to the government.

Please talk to your accountant for better information. You may need a good one!

Which German Poker Sites Are Still Open?

The truth is that barely any German poker sites shut down once the Treaty was enacted. Since most online poker sites are not based in Germany, they are not really bound to abide by German law. Germany could theoretically prosecute an online poker site that is based outside of the country, but it would be extremely hard and very expensive.

All of the major players serve the German market, and most offer a ton of German-specific features to appeal to players. 888 Poker and Party Poker, for example, both offer Deutsch-language software clients.

How Do I Deposit at German Poker Sites Online?

Depositing is as easy as opening an e-wallet account and funding it. From there, you’re free to transfer cash to whichever poker site you choose.

NETELLER and MoneyBookers are two of the most popular e-wallets online, and both are open to German players. I highly recommend you to use one of these services if you plan to deposit at a German poker site online.

Can I Deposit at German Poker Sites in Euros?

Yes, most sites will let you deposit in EUR. Some sites, like Party Poker, even offer EUR-based game tables. That means you don’t have to deal with confusing EUR-to-USD conversions whenever you sit in for a game.

When you open an e-wallet account, you will need to select a preferred currency. If you select Euros, all transactions to and from your account will be EUR by default. If you have a EUR-based e-wallet account, you will want to deposit to a EUR-based player account at a poker site. This is in order to avoid costly currency conversion fees you might incur depositing EUR-to-USD.