“All-in”, “raise” or a disappointed “I’m out!” – The poker fever in Germany is still unabated. But can online poker be used not only to make quick money, but also to really secure a lasting life?
Making a living from online poker – is this possible?
According to a study by Pokerolymp, there were more than 357,000 registered, so-called real money players in Germany in 2013. Playing on the computer and winning money at the same time – a dream idea for many. TECHBOOK explains: How exactly does this work and how quickly the dream becomes an illusion?
Martin S. (31), a professional poker player from Berlin, answered our questions. There is a simple reason why he, like many other German players, lives in exile: “Like in Austria, for example, winnings made here in Stockholm do not have to be taxed.” This freedom of movement in terms of tax laws makes countries like Sweden and Austria a gambling mecca for countless players from all over Europe.
At the virtual world poker tables, however, it is mostly inexperienced beginners and recreational players who come alongside the established professionals. Many of them just want some fun entertainment, but some are looking for financial success.
To play poker successfully, a player would need above all a willingness to learn, discipline and perseverance, so Martin S.: “At first poker is perhaps still about luck, but skill is much more decisive. So it means: Play, play, play. Never give up and above all: never stop learning.”
Online providers like “Pokerstars” are known in this country at least from “Die TV total PokerStars.de-Nacht”. With this fact, Stefan Raab has managed to make poker a modern way of life.
Online poker portals
Only those who are smart and know their way around have a good chance of winning big at virtual poker. To prepare, poker expert Martin recommends: “Before you visit one of the online poker portals like Pokerstars, Partypoker or Everest Poker for the first time, it is advisable to take a basic course at a poker school.” Like the poker portals themselves, schools can be found by the hundreds on the Internet. There, for example, game videos teach how to play poker and win hands. Depending on other tutorials and instructions, similar training videos can of course also be found on YouTube.
Warming up with play money
Another tip that Martin emphasizes emphatically: “Play poker for money!” Learning strategies are best practiced and internalized by beginners in rounds with money game stakes. All popular poker schools offer such an option. This gives you the opportunity to learn how to safely evaluate and improve your skills. In the money game mode, you can safely test your skills and in some cases even win real money in the end.
True to the motto “practice makes perfect”, the formula for success is that a player’s chances of winning increase as experience increases.
Start small and make it big
“To avoid quick losses, beginners should always start with low limits first,” recommends Martin, “also because there are very significant differences between play money mode and real money that you need to get used to.” Therefore, if the player does not want to run the risk of having to fold prematurely right after an all-in, it is better to approach larger pots slowly.
Risk management through smart BRM
“Staying in the game for longer periods of time and maybe playing a little higher poker later in the game is not a matter of luck but of proper management!” explains Martin. Through so-called bankroll management, poker players can reduce the risk of losing their entire deposited capital. This reduces overall losses to a minimum.
A golden rule for this is: Online poker players should have at least 30 full buy-in tournaments before taking a seat at the virtual poker table. In the so-called cash game, a game in which every bet is made with real money, a coefficient of 100 is recommended. This means that with a big blind of one euro, it is best to go to the table with 40-100 euros and have at least 2000 euros in your account. If this is not the case or if the player has already fallen below this limit due to losing rounds, then it is time to leave the table to increase the remaining capital again at tables with lower limits.
Understanding variation
Anyone who wants to play tournaments should know from the start that they are subject to huge fluctuations. “Most amateur players are already overtaxed to even reach a sufficient level of play to not only participate in mid/high stakes tournaments, but also to be able to win them,” Martin strongly believes. The right mindset and the aforementioned bankroll management are absolutely essential for this.
What utilities like HEM are good for
Utilities are an absolute must in online poker, they make themselves indispensable by helping the player in actively analyzing the game. Examples would be: Holdemmanager (HEM) or SnG Wizard.
What are monitoring programs?
The program records the hand histories of the hands played during the game. That is, it analyzes what cards were dealt to the players, how they acted, and how much money was circulated in the process.
Tools for professionals
● Bankroll Management (BRM)
● Discipline
● Mentality
● Poker knowledge
● Understanding variation
● Legal and psychological risks
A risk always remains in the game and therefore in the player. This applies both at the poker table itself and away from it. Poker professionals walk on thin ice, both legally and psychologically.
In general, Germany’s consumer protection warns online against these five player traps:
● (According to the current legal situation) there is a criminal offense for participating in prohibited gambling.
● Malware poses a high security risk.
● Possible misuse of data when making deposits to the player account.
● Bonus credits cannot be cashed out and there is also a risk of theft of amounts already deposited or won.
● In case of damage (e.g. fraud), legal remedies are not possible due to the prohibition of gambling.
Apart from the risk of gambling addiction, there is also the risk of problems with the authorities in extreme cases. Once a player plays poker commercially, meaning he actually earns a living from it, he has to pay income tax to the tax authorities accordingly.
From hobby player to professional
Just like lotto and casino games, poker is classified by the state as a game of chance. This results in 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). For the same reason, however, losses that should have been added to the winnings, such as travel expenses, gambling bets or losses on those bets, cannot be claimed.
Note: Capital gains, such as interest or dividends, arising from gambling winnings must be declared on the tax return and thus taxable.
The situation is completely different for professional gamblers, who generate commercial income from their gambling in accordance with § 15 EstG. In the case of professionals, the tax amount is calculated in exactly the same way as for regular employees, based on the actual income (minus income).
Classification as a recreational or professional player depends on several factors. The most important factors are whether there are serious intentions to make a profit, whether the time spent playing online poker can be classified as work time, and whether or not there is any other income.
TECHBOOK says:
It is often forgotten that according to estimates, only about 5% of all poker players are winning players in the long run. Conversely, this means that in order to be successful as a professional, 95% of all players must be left behind in the long run and even if this is to be achieved. A cautious style of play is especially advisable for beginners, even experienced professionals often rely on the “friction” strategy. This is a special style of play in which small, safe wins are made continuously over a long period of time with minimal risk.