Lawmakers in Stuttgart have made a significant move by approving the regulations of online casino table games in Baden-Württemberg. The significant shift has made the third German state to approve the framework after Bavaria and Schleswig-Holstein.
Under this new framework, casino tables available online, such as roulette and blackjack will be allowed in the state. Policymakers aim to curb illegal gambling, boost state revenue, enhance consumer protection, and channel players toward illegal casino operators through these changes.
This article takes a look at the regulation’s background, key features, and implications of the new game-changing rules for Baden-Württemberg.
Background of the Regulation
The gambling market in Germany can be described as one of the most highly regulated in the world. Bavaria was the first state to regulate digital casinos in April 2024 followed by the northern state of of Schleswig-Holstein in September.
The German Interstate Treaty on Gambling was implemented to offer a cohesive legal online gambling framework across the federal states in Germany.
Under this treaty, the states can enjoy their authority to develop their independent rules related to digital casinos, offering table games like roulette and blackjack. This was done to combat illegal gambling, generate state tax revenue, and protect consumers from problem gambling. The treaty also covers different gambling services and grants every state the autonomy to regulate their gambling activities online based on their local priorities and requirements.
Baden-Württemberg’s decision to join Bavaria and Schleswig-Holstein in adopting this framework has marked a vital step towards a unified approach to legal gambling and highlighted the concerns over unlicensed platforms which have compelled residents to turn to unregulated offshore operators, instead of legal online casinos in Germany.
Key Features and Implications of the New Rules
The new registration of online casino table games like roulette and blackjack has introduced a tiered form of tax structure, which incentivizes compliance for casino operators and generates state revenue. The state-run model ensures player safety, oversight, and accountability. The tiered tax structure follows the format given below –
- 15% for revenue up to €300,000.
- 20% for revenue between €300,000 and €750,000.
- 25% for revenue above €750,000
This is a progressive taxation system, aiming at fair contributions from every casino operator based on their revenues earned and incentivizes tax avoidance practices. The main objective of the new legislation is to improve consumer protection within the online casino industry.
However, players will be limited to a €1,000 monthly deposit for all operators. This can be lifted if players provide sufficient personal information about income and expenditure capacity to allow a mandatory credit check. This, critics of the industry claim, puts more affluent players in the black market’s grasp.
Players who wish to gamble on a platform that is not associated with the black market can now indulge in legal online gambling. This will not only provide taxes to the state but also provide protection to the consumers and safeguard them from manipulation, offering them additional player protection.
