Gaming site GGPoker declares elimination of taxes for German players
In a move aimed at making online poker more attractive to customers in Germany, GGPoker announced easements and changes to its rake and terms of service on February 25, 2022. One of the key adjustments is the decision to cover the 5.3% stake tax for cash games and tournaments, previously borne by users.
Since July 2021, this tax has been in place for cash games on GGPoker, with the 5.3% being deducted directly from winnings or withheld from the stake. However, the funds withheld during tournaments are not intended to contribute to the company's profit, but rather to cover the wager tax.
In a bid to make the platform more competitive in the German market, GGPoker has also reduced taxes for tournaments and Sit&Go games. This means that players will now face a lower tax of 3.0% on these variants, with GGPoker covering 2.3% of the taxes.
While the changes are significant, they do not affect the rake for cash games, which has increased by 1.0%. It's important to note that all information about the rake and any special features are also noted in the game rules for each game.
The approach is transparent and aims to lead to a better gaming experience for all GGPoker customers. The changes came into effect on February 25, 2022, for all players residing in Germany.
High roller tournaments were temporarily removed from GGPoker's program for customers from Germany in July 2021, but it's unclear whether they will be reintroduced as part of the recent adjustments.
For players, the stake tax can indirectly affect their winnings by reducing the odds offered by operators. However, individuals who do not derive their primary income from gambling are not taxed on their winnings in Germany. If poker is their primary source of income, they may face different tax implications, up to 90% on their income[3].
It's worth noting that GGPoker has not disclosed specific details about how it has adjusted its policies regarding the German stake tax. However, it's common for online poker platforms to adapt by offering promotions or adjusting their rake structures to mitigate the impact of taxes on players.
The changes announced by GGPoker are part of a broader effort to address the challenges posed by the 5.3% stake tax in Germany, which has been in place since late 2021 and affects the profitability of operators and the attractiveness of odds for players.
Details about the changes can be found on the "Taxation at GGPoker" subpage and in the terms and conditions. For more information, players are encouraged to visit the GGPoker website or contact customer support.
[1] Online Poker in Germany: An Overview of the Current Legal and Regulatory Landscape. (2021). Retrieved from https://www.gamblingcompliance.com/blog-post/online-poker-in-germany-an-overview-of-the-current-legal-and-regulatory-landscape/
[2] GGPoker announces changes to rake and terms of service. (2022). Retrieved from https://www.pokerfuse.com/ggpoker-announces-changes-to-rake-and-terms-of-service/
[3] Taxation of Winnings in Germany. (2020). Retrieved from https://www.gamblingtherapy.org/en/gambling/germany/taxation-of-winnings
What is the impact of the 3.0% tournament and Sit&Go game tax reduction on GGPoker, given that the company is now covering 2.3% of the taxes for these variants?
Are there any changes in gambling trends observed due to the adjustments in rake and terms of service made by GGPoker, aimed at making online poker more attractive to German customers?
