Published
OnlineLand-BasedLegal & Regulatory

EGBA urges German parliament to reconsider online casino tax proposal

The European Gaming and Betting Association (EGBA) has warned that the proposal by the German Bundesrat to introduce a 5.3% tax on online poker and slots stakes would undermine the key aim of the country’s new online gambling regulations to direct online poker and slots customers into a regulated market.

bundes tag

Moreover, according to the EGBA, the proposal would be in breach of EU state aid rules.

The body suggests that the tax measure would impinge upon the competitiveness of the regulated market, and would lead to 49% of German players switching to unregulated websites, based on a new player survey published by Goldmedia.

The EGBA added that the proposal is punitive, and would result in online poker and slots being taxed at rates higher than their retail equivalent land-based casinos, which would constitute an illegal state aid under EU law. The Goldmedia survey suggests that the tax advantage for land-based operators would be as high as €290m (£250m) a year in the state of Bavaria alone.

The EGBA has, therefore, urged members of the German parliament to reconsider the proposal when it is debated in the Bundestag in the coming weeks.

“We welcome the regulation of the German online gambling market, and we fully appreciate that an online gambling tax will need to be paid,” said EGBA secretary general Maarten Haijer.

“However, we urge the German parliament to reconsider the proposed punitive rate of the tax because it will push German players to use unprotected and unregulated black-market websites and give land-based operators a massive tax advantage.

“We stand ready to share our experiences in other jurisdictions of the EU, and firmly believe that a tax level can be established which strikes the right balance between meeting the needs of the German consumer while ensuring sufficient tax revenue for the state.”

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Seminole Hard Rock Support Services
Seminole Hard Rock Support Services
Metropolitan Gaming
Holland Casino
Nederlandse Loterij
Follow Us

Facing Facts: Q1 2024 analysis from across the globe

Gambling Insider tracks the Q1 results of operators across t...

Taking Stock: A guide to sports betting operator and supplier prices

Gambling Insider tracks sports betting operator and supplier...

Tailor-made: The power of personalisation in the modern gaming industry

With insights from GR8 Tech, Greentube and the Oregon Lotter...

Sportradar and the Taiwan Sports Lottery: More offerings, greater efficiency

Danny Fok, VP of Strategic Projects at Sportradar, speaks al...