European Association for Betting and Gambling (EGBA) urged the German Bundeslander to reject the proposed tax rate of 5.3% for online poker and slot machines, arguing that it would undermine the country's recently updated gambling regulations.
Sales tax has been proposed The Bundesrat , By the German Federal Council, as the final tax treaty to be introduced for casinos and poker verticals 4th interstate agreement on gambling (GlüNeuRStV).
The final tax rate applicable to online casinos and poker verticals remains the last unresolved issue of the revised IGO agreement, which is scheduled to take effect on July 1.
Citing a Goldmedia study showing that 49% German gamblers prefer to use an unregulated operator, the EGBA argues that the proposed tax would both disrupt the competitiveness of the German gambling sector and push gamblers towards unlicensed betting sites where they are not afforded the same protection as in the regulated market. ...
Second, the trade association noted that the tax would provide “a substantial and unfair advantage to German land-based operators over their online counterparts. '.
Webbooks in the state of Bavaria alone will be taxed at a rate four to five times higher than their retail equivalent land-based casinos and 15 times that of land-based slot machine slots if approved.
This, according to the EGBA, would be contrary to the European Commission's rules prohibiting “differential tax treatment”, as it qualifies as “state aid” under European Union law.
“We welcome the regulation of the German online gambling market and we are fully aware of the need to pay tax on online gambling,” said Maarten Hayer , Secretary General of the EGBA.
"However, we urge the German parliament to revise the proposed penalty tax rate as it will push German players to use unsecured and unregulated black market websites and give land-based operators a huge tax advantage."
Instead, the body “calls on the members of the German parliament” to review tax rates and instead consider introducing alternative rates more closely aligned with other EU member states, ensuring that most players use licensed operators in line with GlüNeuRStV's goals.
The EGBA has also made it clear that it “consider all options” to prevent the imposition of the tax. Having already shared its concerns with the EU, the association announced that, if necessary, it will submit official state aid in accordance with the requirements of the EU executive branch.
Haiger added: “We are ready to share our experience in other EU jurisdictions and strongly believe that taxation levels can be set that strike the right balance between meeting the needs of the German consumer while ensuring sufficient tax revenue. for the state.
"If the measure is implemented in accordance with the proposal, we will have to consider all the options available, including filing a state aid complaint with the European Commission."
Against the independent consensus, political groups in the Bundesrat argued that high taxes on online casino verticals were necessary to dissuade national consumers from intense gaming.
The new online gambling regime in Germany will additionally include player protection measures such as a € 1, 000 monthly deposit limit for all operators and a € 1 bet limit on slots.
After being established later this year, GlüNeuRStV will also require all operators to individually register player data in the gambling register of each lander.
In the first quarter auction, many European-based operators cite Difficulties in the German market, given the tight operational adjustments to time requirements for interstate traffic serving the national 16 landing module.
Foreign and local operators have said they will accept the final terms of the Interstate Treaty as a means of providing regulatory certainty for Germany
However, the participants warned the Bundesrat that the gambling business in Germany would require immediate changes after its regime was launched, as the legislation proved unsatisfactory for all interested parties.