Online slot machines increase gambling revenue in Germany

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Posted: October 24, 2022, 10:48 a.m.

Last update: October 24, 2022, 11:52 a.m.

The German gambling industry is doing well with the addition of online slot machines. Only a few months later, the country received an increase in tax revenue of around 15.5% due to market expansion.

Christian Lindner, German Finance Minister
German Finance Minister Christian Lindner makes a presentation shortly after taking office last year. The ministry provided an update on gambling tax revenue, showing a 15.5% year-over-year increase for the third quarter. (Image: Associated press)

Last week, the German Ministry of Finance published the results (in German) of the country’s gaming industry for the third quarter. It reported total tax revenue of 596.1 million euros ($589 million).

Of the total, the online slots segment provided just under a third at €123.2 million ($130.62 million). That’s a decent increase from last year where the country was, when it was still trying to figure out its approach to online gambling.

Germany begins to see the light

germany unified gaming treaty has now been in place for just over a year, although it took several months to set up. As the third quarter of 2022 draws to a close, the German government is finally starting to benefit from the expanded gambling options.

In the third quarter of last year, the country only earned about 32.7 million euros ($32.31 million) from the online gaming segment. A year later, there are still not many options, as most operators avoid the 5.3% revenue on their holdings. The segment is also suffering because some states, such as Thuringia, have established gambling monopolies.

Online poker has doubled in business from a year ago, but that’s still only a small part of the larger market. It was worth 8 million euros ($7.9 million) for the government, which receives 5.3%.

Germany is giving traders who previously targeted its market a chance to switch to the newly regulated market in hopes of seeing it grow. The plan receives mixed results, especially since the government is taking a long time to issue new licenses.

Sports betting revenue fell significantly in the quarter. It lost 47.8%, closing at €53.4 million ($52.76 million). Several states recorded losses, in part because they shifted gears along the way.

Hesse, for example, halted land-based sports betting for two months because of Home Affairs Senator Ulrich Müarer. He thought they were all guilty of money launderingwhat he later discovered was not true.

The state of Nordrhein-Westfalen, the largest by population, controlled the lion’s share of tax revenue. He received 138.3 million euros ($136.65 million). This helped bring the industry’s annual contribution to €1.96 billion (US$1.93 billion), an increase of 20%.

More online slot operators on the way

German players now have a dozen online slot operators to choose from, as two more plan to enter the market soon. The state administration office of Sachsen-Anhalt, which oversees licensing, has just approved the Admiral brand of Interwetten and Novomatic.

Interwetten will have two platforms operating simultaneously in the country, interwetten.de and lasmegas.de. Admiral, which will join Novomatic’s Novoonline brand, will offer slots through its website slots.admiralbet.de.

The two new additions were already present in Germany, offering sports betting platforms to punters. Novomatic also participated in Mernov, the first online slots platform to receive a license before changing hands.

The rise and return of some sports betting will help Germany end the year on an even higher note. The fourth quarter offers non-stop betting options, including the World Cup, as well as a more robust online gaming market to drive growth.

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