gaminglaw.eu: Why do the federal states forgo extra revenue of 1.5 billion Euro? – Germany bottom of the list: European gambling legislators oriented to the successful Danish model
Andreas Schultheis, source: gaminglaw.eu
Barcelona/Munich, July 2013. The German federal states could generate additional tax revenue of more than 1.5 billion Euro between 2014 and 2017. This would require neither redistribution nor tax increases. It would merely be necessary to adjust the inter-state treaty on gambling (GlüStV), which has been in force for one year, to market realities. The model act already exists in Schleswig-Holstein. Possible tax revenue would increase by more than five times the sums generated under the current partial opening of the market. Up to 93 per cent of the betting stakes could furthermore be channelled to regulated platforms. This is the conclusion reached by a study presented by the consultancy company Goldmedia (“Glücksspielmarkt Deutschland 2017″) http://www.goldmedia.de.
And there’s more to it: After one year, the German gambling law regime has failed to achieve its noble intentions, report Focus Online and others. “The regulatory objective of channelling the betting stakes towards state-licensed offers, of combating the black market and of ensuring the best possible level of player protection would not be achieved with the new gambling legislation”, the study concludes. 70 per cent of German betting stakes currently remain in the unregulated market. In 2012 alone, turnover of 6.8 billion Euro was generated in the German sports betting market, with only 245 million originating from state-regulated offers. Focus reports that “the major part” of the turnover lost due to the decrease in the betting market “will probably wander off into the black market. Significant losses are also to be expected for the online market.”
EU trend: Taxation of revenue and competitive tax rates
Whilst providers based far away from Europe and acting in the black market are rubbing their hands with glee, those who decided to face the challenges of comprehensive licensing procedures in Schleswig-Holstein with state-of-the-art instruments for player protection and fraud prevention, and who are furthermore prepared to pay taxes in Germany, are left high and dry. In addition to the neglect of online poker and online casino games in the GlüStV, the taxation of the gambling stakes on which it is based has also contributed to the flourishing of the unregulated market.
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