European Championship - Do I have to pay taxes on my tipping winnings?
Week-long soccer fever comes to an end on Sunday evening with the EURO final at the Berlin Olympiastadion. While sports betting has become a professional aspect of football, during such major sporting events, speculation and betting on the outcomes are also actively discussed and placed among families, friends, colleagues, and even in workplaces.
And it's not always just about the honor: A certain football fan with the right instincts can certainly enjoy a decent winnings. But how much remains of such betting winnings? Does the tax office deduct taxes from it?
No Taxes on Winnings Without Influence
The short answer: No, such winnings do not need to be taxed by tipsters and tipsters. Since they cannot plan or influence whether their result predictions match the actual outcomes and they place first in the tipping game, the tax office cannot request payment from them based on a potential win. The Income Tax Act does not register correct tips as earnings in this sense. Tipsters do not provide a performance over a longer period. Therefore, there is no economic relationship between a correct tip and the resulting income. The remuneration – the winnings from the tipping game – remains tax-free and does not need to be reported to the tax office within the tax declaration. The same applies to a lottery win, which also remains tax-free. In all these cases, the factor of luck prevails.
Despite the excitement and potential winnings in football betting during events like the European Football Championship, it's important to note that tipsters who rely on luck and can't influence the outcomes don't need to pay taxes on their winnings. Conversely, professional gamblers or sports analysts who make a living from their predictions may be required to pay taxes on their earnings.
