Expanding gamble income registered in 2022 by the state
In the realm of gambling, Germany has witnessed a significant shift in recent years, particularly in 2022. The country's overall gambling revenues surged to around 2.42 billion euros, marking a 10% rise from the previous year [1][2][4]. This growth can be attributed to the new German State Treaty on Gambling, enacted in 2021, which has allowed online gaming providers to obtain a German license [3].
One of the most notable sectors experiencing a boom is the digital slot machine sector. Tax revenues from this sector increased by an impressive 126% in 2022, generating 428 million euros [1]. Online poker also saw a substantial increase, with tax revenues rising by 141%, resulting in approximately 33 million euros [1]. Saxony and Thuringia, in particular, reaped substantial benefits from these taxes, with Saxony earning more than 24 million euros and Thuringia collecting 12.94 million euros from online poker and virtual slot machine taxes in the first three quarters of 2022 [1].
However, the fate of these additional tax revenues remains largely unclear. No specific decisions have been made about how they will be used, although Steffen Otterbach, head of the Research Center for Gambling at the University of Hohenheim, suggested that part of the online gaming tax revenues should be used for player protection [5]. Otterbach expressed a need for more investment in research and prevention of problematic or pathological gambling [5].
The new Joint Gaming Authority of the States (GGL) aims to block illegal gaming providers to enhance player protection [6]. In 2024, the GGL reviewed over 1,700 websites and launched 231 prohibition proceedings, significantly increasing efforts compared to the previous year [1]. These regulatory actions suggest a focus on creating a safer gambling environment.
Despite the growth in online gambling revenues, sports betting tax revenues decreased by 8% in 2022, despite the FIFA World Cup in Qatar [1]. Traditional lottery revenues, on the other hand, appear to have stagnated, with the states collecting around 1.66 billion euros in lottery taxes [1].
However, it is uncertain what decisions the states will make regarding the additional taxes from gambling. A recent ruling by the Higher Regional Court has determined that foreign gaming offers cannot be blocked, potentially costing the state millions in taxes [7].
In conclusion, Central Germany has seen a substantial increase in gambling revenues due to the new German State Treaty on Gambling. While specific details on how 2021-2022 tax revenues were utilized for player protection are not provided, regulatory actions suggest a focus on creating a safer gambling environment. The exact allocation of funds specifically for player protection measures is not detailed in the available data, but increased tax revenues can theoretically be used to support initiatives aimed at protecting players.
Online casinos in Germany have significantly contributed to the boom in the casino-and-gambling sector, with tax revenues from online poker and virtual slot machines increasing by 141% and 126%, respectively, in 2022. The growth in these casino-games revenue streams has been facilitated by the new German State Treaty on Gambling, which allows online gaming providers to obtain a German license.
