German legislature approves 5.3% online casino tax

The Bundestag voted to approve the gambling tax bill that accompanies a new legal framework for the country in the field of gambling. German parliamentarians voted for the adoption of a document that sets the amount of a mandatory contribution to the state budget at 5.3% from the turnover of online slots and poker.

The bill, which was created by the Federal Council, the Bundesrat, was approved by the Finance Committee two weeks ago. Its provisions determine the tax rate for Germany's new licensed online gambling market. It will begin its official work in July this year.

The Bundestag was expected to approve the bill, which many experts and gambling operators called very controversial due to the tax of 5.3% for all online casinos operating in the local jurisdiction.

Yes, The European Gambling and Betting Association (EGBA) has previously issued an appeal to the German government, in which it strongly recommended that the bill proposed by the Bundesrat be abandoned. According to the organization's analysts, the established tax contradicts the main goal of the development of the gambling market in Germany - the elimination of the illegal industry and the withdrawal of all operators from the "shadow".

However, according to the EGBA, such an impressive fiscal burden will launch the reverse mechanism, in as a result of which German users will continue to pay for the services of illegal casinos in order to avoid additional losses.

According to the organization's calculations, the 5.3% tax will affect the competitiveness of the regulated market and lead to the fact that 49% of German players become clients of the “shadow” gambling industry.

However, the Christian Democratic Union (CDU), the Christian Social Union of Bavaria (CSU), the Social Democratic Party (SPD) and the Green Party voted in favor of the bill.

The Alternative for Germany (AfD) and the Free Democratic Party (FDP) opposed the bill, while the Left abstained.

Recall, expertназвал illegal casinos are the main threat to the legal gambling business in Ukraine.

Richard "Boz" Bosworth is the main partner and CEO of the young company JC Hospitality, LLC ...
Elizaveta Ershova
Author of informational articles
Position: Author of informational articles about casinos and gambling Higher education Age: 27 years old Experience: more than 5 years Short biography: Born on August 13, 1995 in St. Petersburg. After graduating from school, she entered the philological faculty of St. Petersburg State University. While still studying, Elizaveta started pi...
There are no reviews yet. Help other users with a choice - be the first to share your opinion about this review and get a unique bonus.
To add a comment, please log in: