Germany May Lose up to 40% Players due to New Gambling Restrcitions

Last updated on February 10th, 2024

One gambling study in Germany clearly shows that a vast number (more than 40%) of players do not support Germany’s new Gaming Treaty. The main reason for the low support has to do with the new strict regulations. As a matter of fact, it imposes bigger limitations and even higher taxation. Consequently, that is bound to deter many active German casino players. And it is not only the players who are protesting. More specifically, there is a number of experts and providers who also disagree with the new Treaty, set for July 2021. All of this indicates that this is not a situation that the German Bundestag should take lightly.

This German study is a product by the Handelsblatt Research Institute, in collaboration with ECO as the commissioner. For those who are not familiar, Eco is a trade association for the German internet industry. Furthermore, a total of 2000 players were part of the study. And the results are quite disappointing. More than 40% of the subjects said that the new regulations are simply not working.

For that matter, there is a huge possibility that these players could seek offshore providing solutions. Especially if you take into account changes such as the new 5.3% gaming tax on stakes. And that is what scares the experts. Not only that but also many of them could potentially end up victims of black market casinos as well.

One of the more vocal on the matter, ECO’s honorary president professor, Michael Rotert is definitely against the treaty. When giving a statement, he said the following:

The new State Treaty on Gambling is an important step towards a modern German gambling regulation, but there is also a need for improvement. Liberalization and channeling should be the basic idea of regulation in the State Treaty on Gambling and also in taxation. The legislator should therefore design its regulation in compliance with the law and, above all, the market, so as not to thwart its original objective of opening up and liberalizing the market. This is being jeopardized by the tax plans of the German federal and state governments.

Michael Rotertt – ECO Honorary President Professor

Moreover, Mr. Rotert addressed the importance of improvement when it comes to data protection, licensing and providers:

A sensible regulation that allows for state control consists in opening the online gambling market to licensed providers that are under state control. This must not be jeopardized by plans for taxation and excessive data collection and restrictive regulations, because this survey has also confirmed how important the protection of personal data is to people

Michael Rotertt – ECO Honorary President Professor

It seems like the public disapproval of the new German gambling regulations have yet to reach the ear of the government. Consequently, the German Bundestag is already discussing a new draft bill for a new Racing Betting and Lotteries act. Meaning that this will serve as the platform on which the new gaming tax will emerge. And judging by this situation, it should not come as a surprise to the Bundestag if almost half of the German players ‘suddenly’ opt out and go for foreign gaming solutions. That is all thanks to Germany’s new gambling treaty.