Are online bets legal in Germany?

Despite an ever increasing offer of sports betting on the internet, many are not sure whether online sports betting is actually legal or not. The aforementioned question is always answered differently, although there is now a clear answer.

This was not always the case, because a few years ago it was definitely a grey area. Since then, however, something has changed, which is why the question of legality can now be clearly answered with yes or no. More about this in the following article.

What is the legal situation regarding sports betting in Germany?

So that we don't keep you in suspense for long, here is the answer right at the beginning: Yes, online sports betting is legal. Of course, there should also be a reason for this answer:

Because in 2011, due to pressure from the European Court of Justice, it was decided to start a partial opening of the market for online gambling and sports betting. In the following years, almost 20 providers have received an official licence and are allowed to advertise, offer and carry out legal sports betting on the internet. These licences are, of course, subject to conditions and a levy. The levy is a betting tax of five per cent, which is due on all bets placed. The conditions are mainly regular reports from the providers and inspections by the authorities. Those who have this licence have therefore agreed to both and also comply with them in their daily business.

What about the legality of sports betting abroad?

If you do some research, you will quickly find out that almost all sports betting providers on the internet are based in Malta or Gibraltar. Therefore, the companies are still within the European Union, but the legal and tax conditions there are much looser than in large European countries.

Due to this legal ambiguity, there are no generally valid statements about whether betting is actually legal there. However, no one needs to worry about legal prosecution when betting with these providers. There is no legal basis for such prosecution. Due to the foreign servers, it cannot be clearly defined whether betting takes place abroad or in Germany. However, the betting tax has created clarity and the development continues to move in a good direction for all online sports bettors.

Are there any betting providers with a head office in Germany?

At least at the beginning of some online sports betting providers, there were some companies that had their headquarters within the German state borders. However, due to tax and legal reasons, these providers moved to other European states after some time. These are mainly, as already mentioned, Malta and Gibraltar.

Since almost all providers have their headquarters in Malta or Gibraltar or have moved at least some parts of their business to Malta or Gibraltar, nobody should think that they are therefore dubious or illegal. They merely take advantage of the tax and legal conditions there, which of course can be discussed. All providers with a valid licence are controlled and have to publish certain reports.

In order to get a good overview of the different providers of online sports betting, a good comparison is recommended. For the reasons mentioned above, you should not place too much value on the company's headquarters and rather refer to other factors.

Again, a brief summary:
  • Almost all online sports betting providers are not based in Germany.
  • Malta and Gibraltar in particular are very popular as headquarters.
  • On the other hand, many providers have German roots

FAQ: Popular questions and answers about the legality of online sports betting and its providers

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