Survey suggests German tax could shift 49% of players to black market
Goldmedia recently conducted a survey looking into the German market, as they revealed that the suggested 5.3% stake tax in the German gaming market could potentially cause almost half of the players to turn to illegal and black market operators.
The survey has been conducted in the name of Flutter Entertainment, Entain and Greentube, and it proposes that if the payout ratios of online slots was lessened from the turnover tax, the amount of people using fully licenced and legal sites could go down to 51%. This means that the other 49% of the players will be looking for offers on illegal websites. The survey also clarifies that this will all be due to the black market sites providing better payout rates than the legal ones, of nearly 98%, as regulated sites would offer somewhere around 90%.
The survey was conducted with 619 slot players and revealed that a large portion of players (54%) valued payout rates over anything else, while 31% said that the operator’s licence was most important.
Goldmedia’s survey also noted that 31% of the participants admitted that they used black market websites on a monthly basis, and 27% also use offers and bonuses which do not abide by the guidelines in the country. The study unveiled that illegal offers usually got more hits than the regulated ones.
Goldmedia’s statement read as follows:
“The study published today shows that currently 73 to 75 percent of the regular use of online gaming is based on offers that are fundamentally different to the new regulatory requirements. In the study, the selection preferences of the players for online gaming offers with a focus on online slots were determined. The result is that for players in Germany, payout rates are more important than a German license and the associated security aspects.”
Moreover, this 5.3% tax rate is set to come into effect with the German State Treaty on Gambling (or the Der Glücksspielneuregulierungstaatsverag). At the moment, the Bundesrat (Federal Council) has approved of this, however the legislature still needs to present a final approval.