The European Association of Gambling and Rates (EGBA) warned that Germany’s proposal for the introduction of 5.3% of the online poker tax and gaming rates will undermine the key goal of the country’s new rules in relation to online gambling – to send customers online poker and gaming Machines for adjustable market.
EGBA assumes that this tax measure will affect the competitiveness of the regulated market and will lead to the fact that 49% of German players will switch to unregulated websites, according to a new survey of players published by GoldMedia. Therefore, EGBA called on the members of the German Parliament to revise this proposal.
EGBA added that this proposal is punitive and will lead to the fact that online poker and slot machines will be taxed at rates higher than their retail equivalents of ground casinos. Goldmedia research suggests tax incentives for landline operators could be as high as € 290 million (£ 250 million) per year in Bavaria alone.
EGBA General Secretary Maarten Hayer said:
“We welcome the regulation of the German online gambling market and are fully aware of the need to pay tax on online gambling. However, we urge the German parliament to reconsider the proposed tax rate, because this would push German players to use unsecured and unregulated black market sites and would give land operators a huge tax advantage. We are ready to share our experience in other EU jurisdictions and firmly believe that it is possible to establish such a level of taxation that will ensure the right balance between meeting the needs of the German consumer and ensuring sufficient tax revenue for the state “.