Wiesbaden’s higher slot machine tax to remain in place
A court has upheld the spa city’s hike in gaming machine tax.
Germany.- The higher slot machine tax in Wiesbaden will remain in place following a court decision. The Hessian Higher Administrative Court in Kassel has upheld the spa city’s decision to raise the levy from 5 per cent to 7.5 per cent from January 2024.
Arcade owner Andreas Braun, who operates four venues in Wiesbaden, had filed an objection and constitutional complaint last April, arguing that the tax rise had a “suffocating” effect in business and was eroding operator profits. He cited a previous high court ruling which stated that taxation could not reach a level that “consumes livelihoods”. Braun also claimed the public had been unjustifiably excluded from a preparatory finance committee meeting.
However, judges dismissed the challenge, ruling that the measure was legally sound and designed to strengthen municipal finances. The court noted that the increase was expected to generate up to €1m in revenue. It concluded that there was no evidence the tax would choke businesses, pointing to the stability in the number of gaming halls in the city since the increase two years ago.
The court also dismissed claims of unequal treatment, noting that municipalities tax gaming machines while casino taxation falls under the remit of Hesse. The ruling is not yet legally binding, and applicants may seek review from the Federal Administrative Court in Leipzig.
Braun had referenced a study suggesting that nearly half of respondents were considering illegal gambling services due to restrictions. His concerns appear to have been underscored by recent enforcement action against an alleged illegal online gambling operation in Germany, which is suspected of facilitating wagers totalling €5.86bn over 30 months.
