Are welfare recipients allowed to gamble?
It was all over papers, as the headline „Betting ban for paupers " was displayed on the title pages of German newspapers. Then Westlotto appealed and won its case at the regional appeal court in the summer 2011. Since then there has not been any betting ban for paupers any more. Which means that every welfare recipient is allowed to play Lotto, EuroMillions and Co.!
Profits must be communicated to the job center
If you are on welfare but however you happen to win money in a lottery, the principle is: Honesty is the best policy. If you concealed your lottery winnings, which are indeed a one-time income, from the jobcenter, this would simply be a fraud. For example, if you win a lot of money, the state will cease payment because it assumes that you can fend for yourself for a certain time. Then you also have to pay for the health and long-term care insurance yourself.
Department withdraws welfare for 6 months
A long-term unemployed from Wilhelmshaven was lucky: With a stake of 3.60 euros, he won a galore 10,000 euros at the end of 2015 - which he also inidicated at the jobcenter. The immediate answer of the administrative office was: the winnings were counted against the welfares the gambler had received in the past months. In fact, according to the Social Code, one-time incomes are to be spreaded over six months. Accordingly, the north German man had to get along six months without social welfare.
Income yes, taxes no
The catch: Lottery or gambling profits must not be taxed as income, but they are treated as one. This was decided by the Superior State Social Court in Essen in the winter of 2011. Accordingly, a lottery profit is considered "income" and is calculated against the social welfare benefits of paupers.