EUROPEAN COMMISSION INTERVENES IN GERMAN GAMBLING TAX DEBATE

The European Commission has intervened in the German gambling tax debate, potentially delaying the final Bundesrat (federal council) vote on the proposed 5.3% tax on player stakes. 

With the Fourth Interstate Treaty on Gambling (GlüNeuRStV) scheduled to come into force on 1 July, Germany’s Bundesländer (state governments) need to resolve the tax issue by 7 June if the Bundestag (parliament) is going to draft the legislation and add it to the treaty as a federal condition. 

However, as previously reported, the online gambling industry associations DSWV (sports betting) and DOCV (online casino), and European Betting and Gaming Association (EGBA) have argued that the tax would equate to ‘differentiated tax treatment’ for slots and poker, and give Germany state-owned casino operators an unfair advantage. 

The European Commission has now demanded that the Bundesrat explain exactly how the tax proposals differ from a state aid action prohibited under European Union rules. 

Despite the fact that the European Commission intervention could well delay the Bundesrat vote on the tax proposals by up to a year, the Bundestag is insisting that Germany’s new regulated online gambling regime will still go live on 1 July.