German Federal Court rules online poker winnings taxable
The German Federal Fiscal Court has ruled that winnings from online poker games can be subject to income tax if the player's aim is to generate income
The German Federal Fiscal Court (BFH) has ruled that income from online poker games can be subject to income tax as income from commercial operations.
The ruling, made in a case involving a math student who earned over €80,000 ($87,550) from online poker in 2009, determines that poker is a game of skill and not solely a game of chance for income tax purposes.
However, the BFH clarified that only players who exceed the scope of a private hobby and aim to generate income will be taxed, exempting recreational and hobby players.