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The German betting tax is 5.3% by law, but what you actually pay depends on the bookmaker: some take 5%, some 5.033%, some 5.3%, and some pay it themselves, so it costs you nothing. Freebets are hit differently depending on the bookmaker: a €10 Freebet at x3.00 pays out €20.00, €19.00 or €18.50. This post shows the different cases, what they do to your calculations, and how MB-Tracker's calculators handle all of it for you.
This post is about the betting tax bookmakers deal with in Germany, not about whether you owe tax on your profits. It isn't tax advice. New to matched betting? Start with the beginner's guide.
German betting tax by bookmaker#
By law the betting tax is 5.3%. But the bookmaker is the one who owes it, so each one decides how much to pass on to you. At the time of writing, the bookmakers in MB-Tracker look like this:
| You pay | Bookmakers |
|---|---|
| 0% |  bet365,  bwin,  Tipico,  TipWin,  Winamax |
| 5% |  888sport,  DAZN Bet,  LeoVegas,  LetsBet,  MerkurBets,  Neo.Bet,  Oddset |
| 5.033% |  AdmiralBet,  Bet3000,  Sportwetten,  Vbet,  Wettarena |
| 5.3% |  Betano,  Bet at Home,  Betway,  interwetten,  Tiptorro |
Bookmakers can change these at any time, so treat the list as a snapshot and check the current terms.
The rate is only part of it, because bookmakers also differ in what they tax: Stake the stake of normal bets, Freebet winnings, Stake the stake of a Freebet, Bonus bets and Combi bet combi bets. A few examples:
| Bookmaker (rate) | Stake | Freebet | Stake Freebet | Credits | Combi bet |
|---|---|---|---|---|---|
| Tipico (0%) |
Not taxed | Not taxed | Not taxed | Not taxed | Not taxed |
| Bet at Home (5.3%) |
Taxed | Not taxed | Not taxed | Not taxed | Taxed |
| Betano (5.3%) |
Taxed | Not taxed | Not taxed | Taxed | Taxed |
| MerkurBets (5%) |
Taxed | Taxed | Not taxed | Taxed | Not taxed |
| 888sport (5%) |
Taxed | Taxed | Not taxed | Taxed | Taxed |
| Betway (5.3%) |
Taxed | Taxed | Taxed | Taxed | Taxed |
What the tax does to a normal bet#
On a normal bet, the tax works like lower odds:
This means the odds on the screen aren't the odds you get. x2.10 at a 5.3% bookmaker is really x1.989, so x2.00 at a tax-free bookmaker pays more, even though it looks worse.
Here is what that does to a Back-Back qualifying bet: €10 on player A at x2.10 at bookmaker A, covered at x1.90 at bookmaker B. Each result is the same whoever wins, and 5.033% lands within about a cent of 5%:
| Tax at A | B: 0% | B: 5% | B: 5.3% |
|---|---|---|---|
| 0% | −€0.05 | −€0.63 | −€0.67 |
| 5% | −€0.55 | −€1.10 | −€1.14 |
| 5.3% | −€0.58 | −€1.13 | −€1.17 |
How Freebets are taxed#
On a stake-not-returned Freebet you only get the winnings, without tax that is Freebet × (odds − 1). From there, taxed bookmakers split into three groups:
1. The Freebet isn't taxed. The tax on normal bets doesn't apply here.
2. Only the winnings are taxed.
3. The Freebet's stake is taxed too. You don't get the stake back, yet the tax is still charged on it:
Bookmakers that pay the tax themselves behave like group 1. Here is a €10 Freebet at x3.00, covered at x1.45 at a tax-free bookmaker, with the rates and rules at the time of writing:
| Bookmaker (rate) | Taxed | Payout | Profit |
|---|---|---|---|
| Betano (5.3%) |
– | €20.00 | +€6.21 |
| 888sport (5%) |
Freebet | €19.00 | +€5.90 |
| Oddset (5%) |
Freebet + Stake Freebet | €18.50 | +€5.74 |
| Betway (5.3%) |
Freebet + Stake Freebet | €18.41 | +€5.71 |
Two things stand out. Betano and Betway both charge 5.3% on normal bets, yet the same Freebet is worth €0.50 more at Betano. And Betano beats both 5% bookmakers here, even though it costs more than they do on a normal bet. The rate alone doesn't tell you what a Freebet is worth.
Group 3 hurts most at low odds, because the stake's tax is the same whatever the winnings are. At 5%, you keep 90% of the untaxed payout at x2.00, but 94% at x5.00. In group 2 you keep 95% at any odds.
Using the wrong formula also breaks your cover. Assume the Betway Freebet above is untaxed, and you cover with €13.79 instead of €12.70:
| If... | Betway | Covering bet | Total |
|---|---|---|---|
| Freebet wins | +€18.41 | −€13.79 | +€4.62 |
| Cover wins | €0.00 | +€6.21 | +€6.21 |
Your profit now depends on the result: if the Freebet wins, you get less than the €5.71 you could have locked in.
Bonus bets and combi bets#
Two more exceptions. Some bookmakers don't tax the Bonus part of a bet, so that part pays at the full odds while the rest is taxed normally. And some don't tax combi bets at all, so a Combi bet combi there pays the full odds, even though single bets are taxed.
How MB-Tracker handles all of this#
You could keep a table of all this and pick the right formula for every bet. In MB-Tracker you don't need to: the rate and the rules for stake, Freebet, stake on a Freebet, Bonus and combi are stored per bookmaker and used in every calculation.
- Calculator Pick the bookmaker, and the tax is done. The calculator shows the rate next to the bookmaker's name and uses the right formula for your bet type, so your covering stake and profit are already after tax. Select Freebet and it switches to that bookmaker's Freebet rule.
- N-Way calculator The same in every calculator. The N-Way calculator and the campaign calculators use the same rules. The combi calculator shows 0% for bookmakers that don't tax combis.
- Odds search Search results are priced after tax. The odds search prices the covering bets with your bookmakers' tax and Freebet settings, and the Surebet Finder Surebet Finder and the boosts page apply your tax rates too. So you are comparing what you'd really get, not the odds on the screen.
- MB-Tracker You can see and change the rate. Each bookmaker's page lists how its tax works, and in the bookmaker settings you can set your own rate if you need to, and reset it with one click.
So, what do you pay?#
The law says 5.3%, but what you pay is up to your bookmaker: 0%, 5%, 5.033% or 5.3%, and on Freebets, nothing, the winnings or the winnings plus the stake. Those differences change both your covering stake and your profit. You can work them out by hand with the formulas above, or let the matched betting calculator apply the right one for each bookmaker.
Bet responsibly#
You must be 18 or older. Tax rules and bookmaker terms change, so check the current terms before you bet, and ask a tax adviser about your own situation. Only use money you can afford to lose. If betting stops feeling under your control, take a break and contact a gambling support service.
