In a landmark decision, the European Commission (EC) has ordered Germany to abolish special tax rules for public casinos. The ruling comes after a lengthy investigation into Germany’s complex tax system, which has been deemed discriminatory and in violation of EU competition laws.
The EC’s investigation revealed that public casinos in Germany were subject to lower tax rates than private operators, giving them an unfair advantage in the market. This special treatment for public casinos has been in place for decades, but the EC has now deemed it unacceptable and has ordered Germany to level the playing field for all casino operators.
In a statement, EC competition commissioner Margrethe Vestager said, “The special tax rules for public casinos in Germany are discriminatory and distort competition in the gambling sector. All players in the market must be treated equally, regardless of their ownership structure.”
The EC’s ruling is expected to have a significant impact on Germany’s gambling industry, which has long been divided between public and private operators. Public casinos, which are often state-owned and operated, have enjoyed preferential treatment in terms of taxes and regulations, giving them a competitive edge over private operators who have to pay higher taxes and comply with stricter regulations.
The decision to abolish special tax rules for public casinos comes at a time when Germany is considering a major overhaul of its gambling laws. The country’s current gambling regulations are considered outdated and restrictive, and there have been calls for reform to create a more open and competitive market.
Some industry experts believe that the EC’s ruling could pave the way for a more liberalized gambling market in Germany, with a level playing field for all operators. This could lead to increased competition, higher standards of service, and ultimately a better experience for consumers.
The German government has not yet responded to the EC’s ruling, but it is expected to comply with the decision and abolish the special tax rules for public casinos. It remains to be seen how this will impact the country’s gambling industry and what the future holds for both public and private operators in the market. One thing is certain – the EC’s ruling marks a significant step towards a more open and competitive gambling market in Germany.