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Around half of Germany’s casinos are state-owned while the other half are run by private enterprises.
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Online casino games are currently prohibited, however state prime ministers have approved a new interstate treaty which would licence online casino gaming from Summer 2021.
Under the terms of the that treaty, licenses for internet table games would be limited to exactly the number of land-based licenses available in each state. Authorisations for online virtual slots will be available in an unlimited number on a nationwide basis.
Although Germany carries some of the highest gaming tax burdens in Europe, it is still the fourth highest earner in terms of revenue in the continent.
Despite this high rate, In December 2019 the European Commission opened an investigation into whether public casino operators had received state aid due to their special tax status.
The inquiry is ongoing, but in a worse case scenario German states would need recover the state aid they have already paid out.
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However, similar cases brought against North Rhine-Westphalia over its concession procedures were thrown out by the Commission in 2019.
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Another ongoing EU investigation is looking into whether North Rhine-Westphalia’s annual loss compensation payments and capital injection in 2015 granted in favour of WestSpiel, the state-owned casino operator, gave the company an unfair advantage over its competitors in the region.
In recent years German casinos have also had to wrestle with smoking bans, restrictions on advertising, more stringent ID verification processes and the denial of ATM cash access for players, along with new identification requirements to combat money laundering.