BAD NEWS FOR GERMAN OPERATORS AS LAWMAKERS PASS IGAMING TAX BILL

German lawmakers have passed the ‘GlüNeuRStv’ iGaming tax bill, which will impose a 5.3% betting tax on online casino and poker games.

The bill attracted fierce opposition from the iGaming industry, which argued the tax would equate to ‘differentiated tax treatment’ for slots and poker, and give Germany state-owned casino operators an unfair advantage.

Highlighting how out of kilter the new German tax is compared to other European jurisdictions, DSWV president Mathias Dahms, said: “By taxing the individual stakes, the state asks the customer to pay for every single spin of the virtual slots – over and over again, every few seconds and even if the stakes come from previous winnings. There is a reason that all other EU countries have imposed an income tax on these games and not a gaming stake tax.”

With Fourth Interstate Treaty on Gambling (GlüNeuRStV) set to come into force on 1 July, operators braving the market will have to deal with a raft of harsh restrictions in addition to the tax. Most concerning among them will be the €1 per spin wager limit for slots, and the draconian advertising and marketing restrictions. 

On approving the bill, the Finance Committee also warned operators that it would be seeking to apply the tax rate to both licensed and unlicensed operators still operating in the country. 

AYO.NEWS says:

While the iGaming tax and restrictions will make life difficult for operators who’ve obtained a German license, the warning that Germany intends to apply the tax to unlicensed operators too is bad news for those hoping to operate on the black market. 

Just last month we saw the Maltese tax authorities announce they would be helping their German counterparts chase €10M in VAT payments owed by Lottoland Limited. And, with Malta now desperate to get itself off the FATF greylist, and Curacao bringing itself up to European standards, it’s going to be increasingly difficult for unlicensed operators to avoid the long reach of the taxman.