Is turning money over legal?

Make money with sports betting? You need to know these 5 things!

Recently, a 34 year old hamburger made an incredible profit with sports betting: From 5 euros he made a fabulous 102,730 euros. How is that possible? And is that legal? Here are 5 things you need to know about sports betting.

As "Bild" reports, the football fan was lying correct with 30 bets and twenty thousand five hundred forty-six times his stake with it. Until the end, however, the young man had to tremble about his huge win: In some cases, the decisive hits of his football bet only fell in stoppage time. Although the individual odds were relatively low, the sum total was astonishing. While the winner's family can certainly look forward to generous gifts at Christmas, we took a closer look at the topic of sports betting - and picked out the 5 most important facts.

Are sports bets legal at all?

The legal situation regarding online sports betting in Germany is unclear. There are simply no clear regulations or laws. There is currently not a single online provider who markets their tips with a German license. This is all the more surprising when you consider that Germany is a huge market. Nevertheless, all reputable providers work with permits from other EU countries. Due to the freedom to provide services within the European Union, bookmakers are also allowed to offer their bets in Germany - completely legally. The online betting offers are therefore safe.

Do I have to pay taxes?

Profits from sports betting are NOT taxable! Gambling is always tax exempt. It's easy to understand if you turn the coin around: If the profits from sports betting and other gambling were taxable, losses could also be taxed. Nobody wants that, of course. Since they are not covered by the Income Tax Act, you don't have to pay taxes on your profits. However, the state receives tax revenue from betting shops.

How are such profits actually possible?

If you are wondering how it is possible to win such a bet, you do not yet know the principle of the combination bet. This consists of several different bets. In order to win, all tips have to work out. If only one tip of the combination does not work, the entire bet is lost. In principle, combination bets can contain tips from different leagues and at different times. In theory, two or more paired tips can be referred to as a combination bet. The high total profit comes about because the bet is multiplied by all odds that are played. Due to the multiplication of the stake with the offered odds, combination bets have the advantage of being able to achieve a high profit with relatively little stake. On the other hand, the chances of winning are not high either.

How are betting odds calculated?

A betting odds describes the factor by which the betting participant's stake is multiplied if he wins the bet. The betting offices determine the betting odds, but they are based heavily on the stakes of other players. In this way, the betting company makes a profit regardless of the outcome of the game. This is called the bookmaker margin. The technology is crucial here. The betting company first determines the probabilities for games. In addition to state-of-the-art tools, the betting office's assessment also flows into the odds. An example describes how the odds come about: For a very even game, in which no favorite is recognizable and no draw is possible, a betting provider will probably offer odds of around 1.9 on both sides. Calculation:

1/1,9 = 0,5263 + 1/1,9 = 0,5263

0,5263 + 0,5263 = 1,0526

1/1,0526 = 95,00 %

So the betting company achieved a margin of just under 5%.

In the end, the provider wins

The probability for the lucky hamburger to actually win his bet was only 0.00006083904%. When you think about that, you can still turn green with envy, but you can also accept that the Lord was just damn lucky. It's clear that this doesn't happen every day. In addition, the subject of betting addiction is a very sensitive one. People have already bet entire livelihoods and ruined themselves and their families in this way. In the end, the provider always wins. That is why it also applies to you: Betting should be fun, but everyone should set clear limits beforehand and know that the chances of losing are high.

In a bet there is a fool and a thief.
Walloon proverb

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