Commercial Income from Online Poker

Professional poker playing can give rise to income from a commercial business — the Bundesfinanzhof (BFH) has already established this in several rulings. In a new decision from 2023, it had to address the question of whether this also applies to winnings from online poker. If the player qualifies as a so-called professional player, online poker can likewise generate income from a commercial business. The decisive factor is a "systematic approach to the market using accumulated experience." This is to be distinguished from the activities of mere casual players. During the years in dispute, the plaintiff had spent a total of 5,500 hours playing online poker, completed 784,000 games, and at times achieved six-figure winnings per year — for the BFH, he therefore qualified as a professional. Commercial income earned by a professional online player is taxable in Germany if the computer from which the activity is carried out is located domestically in premises over which the player has power of disposal. This requirement may already be met in the case of a hotel room.