German state of Baden-Württemberg approves online casino games
The German Interstate Treaty on Gambling came into force in 2021. As well as legalising online slots and sports betting, which had previously been prohibited in Germany, it also allowed states to pen their own regulation for virtual casinos with table games.
Baden-Württemberg has used its option in the treaty to open up state-run online casino games such as blackjack and roulette in its territory.
Following on from Bavaria and Schleswig-Holstein in 2024, the southwestern state will become the third to regulate these games in Germany.
“It can be assumed that otherwise people living in Baden-Württemberg will continue to play with illegal providers who do not comply with the necessary measures to protect players,” the legislative bill states.
“Apart from the fact that they are committing a criminal offence, it will be difficult to explain why similar games can be played legally in other states but not in Baden-Württemberg.”
According to the bill, online casino gaming tax will be set at 15% per calendar month on casino revenue up to €300,000. Meanwhile, 20% tax will be applied to revenues between €300,000 and €750,000 euros and 25% will be applied on takings exceeding €750,000.
Germany’s Interstate Treaty noted at the time that one of the goals of regulating online casino was to provide consumers who want to gamble an avenue not associated with the black market. This not only provides tax for the state but protects consumers from manipulation and offers additional player protection.
German market highly regulated
Bavaria became the first German state to regulate virtual casinos in April 2024. This is operated by the state-run State Lottery and Casino Administration. Bavaria’s regulation was followed by the northern state of Schleswig-Holstein in September last year.
The German online gaming market has been described as one of the most heavily regulated in the world. Online slots from regulated operators are subject to a €1 stake limit per spin and a controversial 5% stake tax. There is also a mandatory five-second delay between slot spins.
Players are also limited to a €1,000 per month deposit limit that is applied across all operators in the country. This can be lifted if players provide sufficient personal information on income and spending capacity to pass a mandated credit check. However, industry critics say this drives more affluent players into the hands of the black market.