In Germany, and Industry Representative Deutscher Sportwettenverband (DSWV) reportedly made an official complaint regarding iGaming's tax rates under the country's recently ratified New State Gambling Treaty.
According to a report by iGamingBusiness.com, a complaint has been lodged with the European Commission and claims that the upcoming system constitutes illegal state aid as it intends to tax turnover of online poker and slot machines at 5.3%, which may be higher than what is expected to be available for ground operations such as casinos and game rooms. The source details that many industry observers have argued that the proposed system is not feasible and could end up shoving local iGaming aficionados into the hands of unlicensed foreign domains.
In accordance with the law administered by The European Union member states do not have a supposedly unfair advantage in the form of tax rates for " specific enterprises or industries, or enterprises located in specific regions ". While there are some exceptions that are usually accessed on a case-by-case basis, a recent study by a German research group Goldmedia allegedly predicted that the difference in annual fees for the land and internet sectors in Bavaria he can come to € 293.9 million (359.7 million) and slot machines in the southern state benefit some € 178.1 million (217.9 million) .
Condemn the counterpart:
Action z DSWV that represents online sports betting operators all over Germany, nearly a month ago, was preceded by similar criticism from the European Gaming and Betting Association (EGBA). This pan-European authority allegedly named the proposed tax rates in the new country's gambling treaty as punishments "as if they favored the land sector compared to its online counterpart.
This was reportedly heralded in a Goldmedia investigation, which was commissioned by prominent operators iGaming Entain, Greentube, and Flutter Entertainment, and included the finding that the resulting local channeling factor could be as low as 51% .
The new state's gambling treaty is rumored to enter into force on the first day of the following month to allow iGaming companies to Germany to start offering their services to local lovers. Prior to that date, the country is currently operating under a transitional regime that allows companies to operate as long as they agree to comply with upcoming laws that include 1 EUR (1 USD 22) limit of rates for individual machines with the average speed of five seconds . Notable operators LeoVegas AB and Bet-At-Home.com AG have allegedly stated that the limitations of the upcoming program had already hurt their first quarter earnings .