EC to probe Germany’s casino tax system
The European Commission will assess the current tax treatment of public casinos in Germany.
Germany.- The European Commission (EC) opened this week an investigation to look into the special tax treatment of public casinos in Germany. The commission will assess whether the system is in line with EU state aid rules.
The Commission has said that it has also opened an in-depth investigation into North Rhine-Westphalia’s measures regarding public casinos, EUbusiness revealed. This investigation, which comes after complaints, will focus on whether annual loss compensation payments in the region in favour of public casinos have granted an undue advantage to the operator, the news outlet informed.
Current regulations in Germany establish that public casino operators are subject to a tax regime that replaces other general taxes. The EC said that it has received complaints from companies in the gambling sector, which argue that the system is designed for public casinos to remain profitable.
The EC will investigate whether the tax regime gives an unjustified economic advantage for the public casino operators in Germany. This investigation allows third parties to submit comments but doesn’t influence its outcome.
Germany warns about iGaming operations
Authorities in Germany warned iGaming operators and urged those offering online gambling or poker to stop or risk losing their licences. As the country is reforming its gambling laws, the licencing process was criticised over “little transparency,” according to some requests. That’s why some demanded the Darmstadt Regional Council — which represents the state of Hesse — to delay it.
“State authorities will not tolerate this,” the authorities said. “Once the third amended State Treaty enters into force, sports betting providers that continue to operate in Germany without obtaining (their iGaming) permission can expect to be sanctioned.”
The authorities may introduce interim laws on January 1, 2020, which would last until the end of June 2021.
