Online Casino Games Now Legal in Baden-Württemberg
The German state of Baden-Württemberg has taken a significant step towards regulating online gaming, with lawmakers in Stuttgart approving new rules for certain online casino games.
LISTEN TO THIS ARTICLE:Since 2021, German states have had the authority to regulate virtual casinos offering table games in their jurisdictions, thanks to the German Interstate Treaty on Gambling, which also legalized online slots and sports betting in the country.
Baden-Württemberg has exercised its option under the treaty to launch state-operated online casino games, including blackjack and roulette. With the development, it becomes the third state to legalize these online casino games, following Bavaria and Schleswig-Holstein's lead in 2024.
One key objective of Germany's Interstate Treaty was to provide a regulated online casino market, thereby reducing reliance on unlicensed black market sites. This approach generates tax revenue for the state while also protecting consumers against exploitation and providing improved player protection measures.
Aligning with this goal, the approved Baden-Württemberg casino games bill noted that without regulation, residents would likely continue to patronize unauthorized providers that fail to implement adequate player protection measures.
As outlined in the legislation, online casino operators will be subject to a 15% tax on monthly revenue, up to a maximum of €300,000. A higher tax rate of 20% will apply to revenues between €300,000 and €750,000, while revenues exceeding €750,000 will be taxed at 25%.
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Tight Controls on Online Gaming
The online gaming sector in Germany is considered one of the most strictly regulated globally. Online slots face a €1 cap on bets per spin, a 5% stake tax, and a mandatory five-second interval between spins.
Players are also subject to a €1,000 monthly deposit limit across all operators, although this restriction can be lifted if players provide financial information and pass a mandatory credit check. Industry experts warn that this measure pushes wealthy players towards unregulated black market operators.
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