Germany’s Sports Betting Association (DSWV) has hit back at a decision made by the Bundesrat and Bundestag to uphold the Fourth State Treaty on Gambling’s (GlüNeuRStv) tax regime.
Earlier this week, the German legislature agreed to maintain a 5.3 per cent wagering tax on online casino and poker verticals.
However, the DSWV had recently called for the tax charge to be excluded from legislation, having argued that the German Lander should work together to establish a fair market tax plan.
“Unlike all European countries, Germany does not tax the provider’s earnings for virtual slot machine games and online poker, but rather the individual stakes made by consumers,” the statement from the DSWV read. “This makes the games more expensive for the customers and the winnings less often.”
DSWV President Mathias Dahms remarked that in its unchanged state, the GlüNeuRStv would not be fit for purpose, stressing his belief that the Bundesrat had ‘jeopardised the success of the new gambling regulation in Germany a few days before it comes into force’.
Dahms added: “There are two alternatives for German consumers: Either they accept that the game will be significantly more expensive for them or they switch to black market offers that are easily available on the Internet and that do not pay taxes in Germany… Neither option is wanted.”
Following the launch of the GlüNeuRStv, DSWV warned German ministers that the regime will fail to even secure a 50 per cent channelisation rate.
Dahms concluded: “For years, the countries had struggled to find a compromise on the State Treaty on Gambling and to open up the online gambling markets in order to finally get this area under regulatory control.
“Now the countries are destroying their own work with an over-tax regime for virtual machine games and online poker in the last meters.”