German gaming tax revenue reaches €596.1m in Q3 thanks to online slots
Annual growth in Germany's gambling tax revenue was 15.5%.
Online slot machines contributed €123.2 million to this sum. During the first quarter of 2021, operators paid a meagre €32.7 million in taxes under Germany's new Fourth State Treaty on Gambling. This marked a significant increase from that period.
A big point of contention under the new system is the need that online slot companies pay taxes equal to 5.3% of stakes.
Although just a handful of operators were granted licenses to provide online slot games in Germany in the third quarter, operators are now exempt from enforcement measures so long as they adhere to the regulations outlined in the State Treaty and pay their gambling taxes.
Revenue from online poker was €8.0m, up significantly from €6.0m in the previous year. Since there are currently no licensees, operators under the transitional regime were responsible for paying the full 5.3% tax on stakes, which applies to both online poker and slot machines.
A reduction of 47.8 percent resulted in €53.4 million in tax revenue from sports betting. Bets on sporting events are subject to a 5.0% tax.
Hesse, Schleswig-Holstein, Bremen, Berlin, and Brandenburg all had negative tax income, which was the main cause of the decline.
The majority of revenue, at €409.5m, increased 8.4% year-on-year, came from the lottery.
Other racing tax revenue was €191,000, while totalisator taxes were €1.8 million.
With 138.3 million euros, Nordrhein-Westfalen was the most populous state in Germany in terms of tax revenue. internet slot machines contributed €19.5m, while internet betting contributed €24.7m.
Online slot income in Schleswig-Holstein was €18.8m, second only to Nordrhein-Westfalen, which had the greatest tax take from all major verticals. Schleswig-Holstein was the only state that controlled online casinos before 2021.
Total revenue from gaming and lottery taxes was €1.96 billion so far this year, an increase of 20.0% over the previous year.
