States in the federation propose to impose taxes on internet-based gaming
The heads of government of the states in Germany have agreed on a new State Treaty on Gambling, a landmark decision that allows online casino games to be played nationwide for the first time. However, the proposed legislation comes with a hefty tax that has raised concerns among providers and the Online Casino Association.
The plan to tax online gambling is a federal matter, with reform proposals being developed at the state level. A new tax is being proposed for online gambling in several federal states, with the affected providers criticizing the proposed taxes as too high. The tax will be 5.3% for poker and 8% for slot games, based on the stake.
Providers have been obliged to pay value-added tax on their gross revenues even without a German gambling license so far. The new tax, if implemented, will be an additional burden for these businesses. The Online Casino Association, which includes several large casino and game providers, has expressed concerns about the potential impact of the new tax plans on the control of the black market.
Dirk Quermann, President of the Online Casino Association, stated that the plans of the state working group will inevitably lead to the goals of the new State Treaty on Gambling being missed. The Association fears that customers will continue to play with unregulated providers without a German license due to the high taxes, thereby undermining the efforts to control the previously unregulated black market.
The new State Treaty on Gambling aims to control the black market and also fight gambling addiction. The revenue generated from the new taxes is intended to 'support fiscally' the objectives of the legislation. The states expect to generate additional revenues of nearly 1.4 billion euros from these new taxes.
None of the involved ministries wanted to comment on the plans. The search results do not provide information about which federal states are involved in the working group advocating for the introduction of a new tax on online gambling participation in Germany.
The legislation is anchored in the State Treaty on Gambling. The proposed taxation of legal online gambling offers is yet to be determined. The federal ministry of finance is discussing changes to the Racing and Gambling Act in this regard. The new State Treaty on Gambling also aims to provide a legal framework for virtual money-winning games, which were previously illegal and punishable, with a few exceptions.
In conclusion, the new State Treaty on Gambling in Germany marks a significant step towards legalizing online casino games nationwide. However, the proposed tax on these games has raised concerns among providers and the Online Casino Association, who fear it may drive customers towards unregulated providers and undermine the efforts to control the black market. The details of the taxation are still under discussion, with the federal ministry of finance considering changes to the Racing and Gambling Act.
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