As it has been informed in the recent news about the casino sector, the German Bundesrat’s decision to impose high taxes on the slots and digital poker verticals will bring much damage to the gambling industry.
This announcement was made by the European Gaming and Betting Association (EGBA). The organization specified the risks related to the possible taxation.
What will be the consequences of these taxes?
According to the organization, the proposed taxation will have a bifold impact on the industry, although both scenarios will be negative. The first one is connected with the demand for the black market as many players will switch to unlicensed websites. It is estimated that almost fifty percent of gamblers will prefer such services to legal products. The second one relates to the land-based vertical and unjust privileges for gambling halls, which provide the same services as online platforms. It is expected that land-based gambling services providers will get the tax advantage of approximately 290 million euros annually (in the case of the state of Bavaria).
That is why the EGBA asked German Bundesrat to reconsider its intention. The association emphasizes that a 5.3% tax isn’t in line with the European Union’s principles related to state aid. Moreover, the implementation of this tax burden will disrupt the provisions of the new gambling regulations.
Read more: Legal framework for gambling in Europe