Some online casino games in the German state of Baden-Württemberg will soon be regulated, according to politicians in Stuttgart.
The German Reich
In the year 2021, the German Interstate Treaty against Gambling was officially implemented. In addition to lifting long-standing prohibitions on online slot machines and sports betting in Germany, the law now permits individual states to establish their own rules for internet casinos offering table games.
With the employment of its treaty option, Baden-Württemberg has opened its borders to state-run online casinos offering games like blackjack and roulette.
The state in Germany's southwest will join Bavaria and Schleswig-Holstein in 2024 as the third to govern these sports.
It is presumed that residents of Baden-Württemberg will persist in using unlicensed service providers who fail to adhere to the required safeguards for gamers, according to the bill.
"Beyond the obvious fact that they are breaking the law, it's not clear why games like this are legal in some states but not in Baden-Württemberg."
The measure states that, up to €300,000 in monthly earnings, online casinos will be subject to a gaming tax of 15%. Meanwhile, earnings between €300,000 and €750,000 are subject to a 20% tax rate, while earnings above €750,000 are subject to a 25% tax rate.
One of the aims of regulating online casinos, according to Germany's Interstate Treaty, was to give gamblers an option that wasn't linked to the underground market. This safeguards customers against manipulation and provides further safety for players while also generating tax revenue for the state.
Rigid regulations in Germany's market
In April of 2024, Bavaria got ahead of the curve in Germany by regulating online casinos. The State Lottery and Casino Administration, a state-run agency, is in charge of this. In September of last year, the northern state of Schleswig-Holstein followed Bavaria's legislation.
Among the world's most strictly regulated markets, Germany's online gambling scene stands out. Players at regulated online slot machines are subject to a contentious 5% stake tax and a €1 per spin wager restriction. Additionally, every slot machine spin must be followed by a five-second pause.
There is a nationwide cap of €1,000 per month that players must adhere to while making deposits. This can be waived if players are able to pass the mandatory credit check by providing enough personal information regarding their income and spending capability. On the other hand, those who are against the industry argue that this leads to the illegal market acquiring more wealthy players.
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