Germany’s Gambling Revenue boosted by Online Slots
The German gambling industry has seen positive results from the addition of online slots. Just this year the country’s tax revenue increased by 15.5% following the expansion of the gambling market.
The German Ministry of Finance, Christian Lindner, released the results of the third quarter last week. The report shows a total tax revenue of €596.1 million.
The online slot segment generated just under a third of the total at €123.2 million. It appears that the country is taking a huge step in the right direction, with an increase from last year when they were still figuring out how to approach the online market.
Germany looking forward
The new gambling treaty has been in place for over one year now, but it only came into effect after several months of implementation.
The German government is finally beginning to benefit from the expanded gaming options.
In comparison, the revenue of the 3rd quarter last year, from the online gaming segment, was only €32.7 million. Nevertheless one year later most operators are still shying away from the 5.3% revenue on their stakes. Furthermore the gaming industry is suffering because some states, including Thuringia, have established monopolies.
In the last year, online poker has seen a doubling in activity. However it is still only one piece of an even larger market. The government received 8 million euros from this tax, which accounts for 5.3% of its value!
Germany’s new market regulation plan is designed to give operators who targeted the market before its transition an opportunity for growth. The plan is not receiving the best responses from those it affects, especially as more time passes with new licenses being issued by government officials.
The sports betting industry experienced a significant decrease in revenue, with several states losing money because they changed their strategy midstream. It lost 47.8%, closing at €53.4 million. Senator for Internal Affairs, Ulrich Müarer, cut off land-based sportsbooks, in Hesse, for two months because he thought they were all guilty of money laundering. It turned out that he falsely accused them.
The state of Nordrhein-Westfalen controls the lion’s share of tax revenue. The state received an overwhelming €138.3 million. The year-to-year contribution for the industry was therefore €1.96 billion. Which was an increase of 20%.
More slot providers are coming
With a dozen slot operators to choose from, German gamblers don’t have a lot of options when it comes to gambling. That is why two more operators are planning on entering the market soon. The Sachsen-Anhalt State Administration Office has just approved Interwetten and Novomatic’s Admiral brand.
Interwetten has announced that they will be launching two websites in Germany, interwetten.de, and lasmegas.de. Admiral, which will join Novomatic’s NOVO LINE brand, will offer slots through its website: slots.admiralbet.de.
The two newcomers are already present in Germany, where they offer a range of sports-betting platforms for gamblers.
With the recent increase in sportsbooks, Germany can expect an even higher end of year in 2022.The fourth quarter will offer non-stop betting options, including the World Cup. This is a great opportunity to increase business in this area and take advantage of increased demand from gamers.
Category: Gambling industry