EGBA Sees Rules Violation in Germany’s Tax on Virtual Poker

By | June 4, 2021

As the latest poker news informs, the European Gaming and Betting Association doesn’t support the decision of Germany’s government to set a 5.3 percent tax rate on the online poker sector.

The organization representatives are sure that this kind of taxation conflicts with the European Union’s state aid provisions.

EGBA proceeded with a complaint

EGBA’s discontent with the proposal resulted in the official complaint. It entered a plea to the European Commission for considering the possible virtual poker taxation in Germany. The association sees a great problem in this tax law for the poker industry as its participants will need to pay devastatingly big sums to the state coffers. This will influence the overall situation in the regulated gambling market, giving more opportunities to unlicensed operators.

EGBA members also note that this law is at least unjust for the providers of online services. Their land-based competitors aren’t obliged to pay such high rates. It is estimated that brick-and-mortar gambling establishments will have almost €300 million tax advantage annually, which is approximately €750 million of financial support for the land-based sector.

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