“All-in,” “raise,” or a disappointed “I’m out!”—the poker craze in Germany is still going strong. But can online poker not only be used to make quick money, but also to truly secure a long-term livelihood?
Making a living from online poker: is it possible?
According to a study by Pokerolymp, there were more than 357,000 registered real-money players in Germany in 2013. Playing on the computer and making money at the same time is a dream come true for many. TECHBOOK explains: How exactly does this work, and how quickly does the dream become an illusion?
Martin S. (31), a professional poker player from Berlin, answered our questions. He explains why he, like many other German players, lives in exile for a simple reason: “Just like in Austria, gambling winnings made here in Stockholm don’t have to be taxed.” This freedom of movement in terms of tax legislation makes countries like Sweden and Austria gambling meccas for countless players from all over Europe.
At the poker tables of the virtual world, however, it’s primarily inexperienced beginners and recreational players who frolic alongside seasoned professionals. Many of them just want some entertaining entertainment, but some are seeking financial success.
To play successfully, a player needs above all a willingness to learn, discipline, and perseverance in poker. Martin S.: “At first, poker may still be about luck, but skill is much more crucial. It means: Play, play, play. Never give up, and above all: never stop learning.”
Online providers like “PokerStars” have been a household name in this country at least since “Die TV total PokerStars.de-Nacht.” With this event, Stefan Raab succeeded in making poker a modern lifestyle.
Online poker portals
Only those who are smart and know their way around have a good chance of winning big in virtual poker. To prepare, poker expert Martin suggests: “Before visiting one of the online poker portals like Pokerstars, Partypoker, or Everest Poker for the first time, it is highly recommended to attend a basic course at a poker school.” Like the poker portals themselves, schools can be found by the hundreds online. There, for example, game videos teach how to play poker and win hands. Analogous to other tutorials and instructions, of course, similar instructional videos can also be found on YouTube.
Warming up with play money
Another tip Martin emphasizes emphatically: “Play poker with play money!” Beginners practice and internalize learning strategies best in play-money rounds. All popular poker schools offer this option. This gives you the opportunity to learn how to safely assess and improve your own skills. In play-money mode, you can safely test your skills and, in some cases, even win real money at the end.
True to the motto “practice makes perfect,” the formula for success is that a player’s chances of winning increase with increasing experience.
Start small and go big
“To avoid rapid losses, beginners should always start with low limits,” Martin recommends, “also because there are quite significant differences between play money mode and real games that take some getting used to.” So, if the player doesn’t want to risk having to fold prematurely right after an all-in, it’s better to approach the larger pots slowly.
Risk management through intelligent BRM
“Staying in the game for longer periods of time and perhaps playing a slightly higher stakes later in the game isn’t a matter of luck, but of proper management!” explains Martín. Through so-called bankroll management, poker players can reduce the risk of losing their entire deposited capital. This keeps overall losses to a minimum.
A rule of thumb for this is: online poker players should have at least 30 full tournament buy-ins before sitting down at the virtual poker table. In a so-called cash game, a game where all bets are made with real money, a factor of 100 is recommended. This means that with a big blind of one euro, it’s best to go to the table with 40-100 euros and have at least 2,000 euros in your bankroll. If this isn’t the case, or if the player has already fallen below this limit due to losing rounds, then it’s time for them to leave the table to increase their remaining bankroll again at lower-limit tables.
Understanding variance
Anyone who wants to play tournaments should be aware from the outset that they are subject to enormous variance. “Most amateur players are already overworked to reach a level of play suitable not only to participate in mid- to high-stakes tournaments, but also to be able to win them,” Martin harshly states. A proper mindset and the aforementioned bankroll management are absolutely necessary for this.
What utilities like HEM are good for
Utilities are absolutely essential in online poker; they become indispensable by assisting the player with active game analysis. Examples include Holdem Manager (HEM) or SnG Wizard.
What are monitoring programs?
The program records the hand history of all hands played during the game. That is, it analyzes which cards the players were dealt, how they acted, and how much money was circulated during the process.
Tools for professionals
● Fund Management (BRM)
● Discipline
● Mindset
● poker knowledge
● Understanding Variance
● Legal and psychological risks
There’s always a risk in the game, and therefore in the player’s hands. This applies both at the poker table and off it. Poker professionals tread on thin ice, both legally and psychologically.
In general, German consumer protection warns against these five online traps for players:
● (According to the current legal situation) there is a criminal offense for participating in prohibited games of chance.
● Malware poses a high security risk.
● Possible misuse of data when making deposits to the player’s account.
● Bonus credits cannot be cashed out, and there is also a risk of theft of amounts already deposited or won.
● In the event of damages (e.g. fraud), no legal remedy is possible due to the prohibition of gambling.
In addition to the danger of gambling addiction, there is even the threat of trouble with the authorities in extreme cases. As soon as a player plays poker commercially—that is, actually makes a living from it—he must pay income tax to the tax office accordingly.
From amateur to professional player
Like lottery and casino games, poker is classified by the state as a game of chance. This translates into a tax advantage, as legal gambling income that can be attributed to private assets is currently tax-free (this even includes a million-dollar win in Las Vegas). However, for the same reason, losses that must have been incurred in the context of winnings, such as travel expenses, gambling bets, or losses from these bets, cannot be claimed.
Note: Capital gains such as interest or dividends generated through gambling winnings must be declared on the tax return and therefore subject to tax.
The situation is completely different for professional gamers, who generate commercial income from their games in accordance with Section 15 of the EstG. For professionals, the tax amount is calculated exactly the same as for ordinary employees, based on actual income (less earnings).
Classification as a recreational or professional player depends on several different factors. The most important factors are whether there is a serious intention to earn money, whether the time spent playing online poker can be classified as work time, and whether or not there is other income.
TECHNOLOGY says:
It’s often forgotten that, according to estimates, only about 5% of all poker players are long-term winners. On the contrary, this means that to be successful as a professional, 95% of all players must fall behind in the long run, and even if this is to be achieved. A cautious style of play is recommended, especially for beginners; even experienced professionals often rely on the “grinding” strategy. This is a special style of play in which small, secure wins are generated continuously over a long period of time with minimal risk.