A German gambling research center has called for updating the country’s gambling laws.
The Gambling Research Centre (Forschungsstelle Glücksspiel) at the University of Hohenheim in Stuttgart recommended imposing taxes on unlicensed operators, and legalizing, but strictly controlling, online casino games.
“There is agreement that the enforcement against illegal providers on the Internet needs to be strengthened,” the Centre said.
“Currently, the offer of online casino games on the Internet is largely illegal, but still takes place. It can be assumed that some states will continue to allow online casino games or will do so in the future,” it explained. “Also, for player protection reasons, a regulated market is preferable to a non-regulated market.”
The report shows that the overseas online gambling operators are able to make a dent into the system and cut into the state’s tax revenue. They also prey on vulnerable customers. As such it recommends that all gambling operators licensed or not should pay taxes.
In Germany, the land-based casinos generated gross gaming revenue of €607m in 2017 and paid €319m in casino and sales taxes.
It is estimated that the illegal gambling market generated about €1.76bn for the same period.