Online Gambling Regulations in Germany

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Published: March 26, 2019
Updated: April 2, 2026

Gambling has taken over the world and new players sign up at online casinos almost daily. However, for players from Germany, there is some confusion regarding the laws on online gambling.

Germany is one of the countries in the world where online gambling is mostly outlawed. The country has placed a ban on anyone hosting a gaming site within the borders.

However, when it comes down to whether players are allowed to participate in online gambling, there is a bit of confusion regarding the legalities.
This tends to make things a little more difficult, as online gambling is certainly one of the most popular pastimes in Germany.

Online gambling regulations in Germany — Online gambling regulations, laws and taxes in Germany

In this guide, we take a look at the history of gambling and the current laws and new developments regarding online gambling in Germany. Keep reading if you want to know whether or not you can legally participate in online gambling in Germany.

The history of online gambling in Germany

Before 2008, the online gambling market already existed in Germany, but it was mainly unregulated. Then, the government created the Interstate Gambling Treaty (IGT), which placed a ban on all forms of online gambling.

Plus, it made it clear that all German banks and internet access providers were forbidden to conduct any business with online gambling providers. Anyone who was in breach of this would be looking at hefty penalties and even jail time.

The problem is that while the law was put in place to reduce problems such as gambling addiction, internet fraud and other criminal activities, there was very little follow-through on the law.

Another problem for the German government was that the European Union (EU) stepped in and prevented them from completely banning online gambling.

In 2012, the IGT was amended and online lotteries and sports betting were again allowed in the country.
Other forms of online gambling, such as regular online casinos and poker rooms, were still banned in the country.
The IGT 2012 amendment was approved and signed by 15 out of the 16 German States.

Schleswig-Holstein instead chose to independently license its own online operators under more liberal regulations. In 2013, this state had already issued nearly 50 online licenses, which were valid for 6 years.

All licensed online casinos in this state were required to pay a 20% gross revenue tax. Interestingly enough, the Schleswig-Holstein Parliament later took a vote against their own set of laws and opted to sign the treaty like the rest of the German federal states.

While this side of things changed, the casinos that had already obtained their licences were still allowed to keep operating until the expiry date of 2018. Other operators looking to obtain licences would have to adhere to many more restrictions.

EU interruption and new laws

The 2012 treaty was not approved by all. In fact, it was criticised by the local courts because of the cap on the number of licences it allowed. This new regime was frowned upon and ruled against by the European Union’s Court of Justice (CJEU).

In 2016, the CJEU stated that the treaty was in violation of the EU laws and principles regarding the free movement of services within the union. Local authorities were not technically allowed to prosecute online sports betting operators offering their services to German citizens.

While a new treaty was created in 2017, lifting the licence cap from 20 to 40, the EU was still not happy.

Schleswig-Holstein, now under a new government, was one of the first to announce it will not implement the Interstate Treaty but will instead re-implement its own Gambling Act.
Other states in Germany were also strongly considering adopting a different regulatory regime.
If it is similar to the Gambling Act of Schleswig-Holstein, this would mean that all forms of online gambling will be legalised in these states.

In October 2020, significant changes were made for the German market. They included verifying the identity of each new player, acknowledging players of their lost amounts, and making sure that deposits cannot exceed €1,000 per month.

2021 also came with a lot of changes for German players. As of 1 July 2021, the State Treaty on Gambling became fully in effect.

The most important change it introduced was that payments via cash or vouchers are no longer available.
Slot games have a one-spin cap and a five-second speed per spin.
The tax on online poker is set at 5.3%.

Are gambling winnings taxable in Germany?

No, you are not required to pay any taxes on any gambling winnings.

However, there is a chance that this might change in the future, depending on which new regulations the different states will implement regarding online gambling.

For operators, things aren’t looking quite so bright in the tax section. All German and foreign gambling operators providing services to online casino players are required to pay taxes.

The general VAT law applies, and these operators are expected to pay 19% of their gross gaming revenue. Again, this might increase or decrease in the different states depending on what new regulations are implemented.

The future of online gambling in Germany

Despite the current uncertainty surrounding the legality of online gambling in Germany, there is a silver lining. Thanks to the push from the EU, more German states have started reviewing and changing their stance on online gambling.

Germany introduced its gambling regulator in 2022 by the name of Gemeinsamen Glücksspielbehörde der Länder (GGL).
As of 2024, GGL can issue thorough compliance checks and conduct criminal investigations against unlicensed/illegal operators.
It can also employ additional measures to persecute illegal gambling platforms, especially those based beyond the borders of the country.

Germany has been cracking down on illegal gambling and gaming advertising. The regulations are becoming even more severe and the updates to the Interstate Treaty regime include restrictions on affiliate advertising and ads during certain hours of the night.

For now, players can still gamble online thanks to the EU’s ruling of 2016. It states that unlicensed foreign operators cannot be restricted or penalised due to the difficulty of getting an online gambling licence from Germany.

Before you sign up at just about any of the hundreds of online casinos available, it would be wise to browse our list of top-rated online casinos for Germany. These have been reviewed to make sure they are safe to play at and offer excellent service and great bonuses.