The third German state to approve state-run online roulette and blackjack is Baden-Württemberg. This decision is in line with the German Interstate Treaty on Gambling, which went into force in 2021, and comes after similar actions taken by Schleswig-Holstein and Bavaria in 2024. In order to safeguard consumers and provide tax advantages, the treaty gave individual states the authority to regulate online table games.
The goal of the new rule is to deter players from using unlicensed, unregulated offshore platforms. Lawmakers contend that citizens would continue to gamble on unregulated websites with no player protections if there were no legal options. The measure points out that a large number of people in Baden-Württemberg already obtain these games through offshore operators, endangering gamers and costing the state money in taxes.
Structured Taxation and Regulatory Measures
The legislation introduces a tiered tax model for online casino revenue. Operators will pay:
- 15% tax on monthly revenue up to €300,000 ($314,335.50)
- 20% tax on revenue between €300,000 and €750,000 ($785,838.75)
- 25% tax on earnings above €750,000
While making sure operators participate in industry oversight, this method seeks to bring in money for the state.
One of the most tightly controlled online gaming markets in the world is Germany. Restrictions include an obligatory five-second lag between spins, a €1 stake cap per spin on online slots, and a 5% tax on player wagers. Additionally, unless they pass a financial background check, players are subject to a monthly deposit cap of €1,000 across all operators.
Restrictive limitations are criticized by some industry professionals who say they drive high-stakes players to offshore casinos. Nonetheless, supporters contend that these laws are required to stop financial hazards and gambling addiction.
In April 2024, Bavaria became the first state to regulate online casinos, and in September, Schleswig-Holstein did the same. Through their respective lottery and gaming authorities, both states run online gaming systems. By giving players a safer, state-monitored option, the German Interstate Treaty on Gambling seeks to lessen activity on the illicit market.
Now that Baden-Württemberg has enacted comparable laws, other states might do the same, significantly influencing Germany’s changing online gaming environment.
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