Germany gambling regulation, licensing and taxation

Regulated. Local licensing.

Land-based casino gaming, including slots and table games such as poker, baccarat and blackjack, are licensed under the casino acts of the 16 states. 

Land-based casinos are regulated and licensed by the state in which they are located. This is confirmed by the Joint Gambling Authority of the Federal States (GGL) which states in its FAQs: “There are two types of land-based casinos in Germany: casinos owned by private companies; and casinos directly or indirectly owned by states.”

The states of Berlin, Hamburg, Hesse, Mecklenburg-Western Pomerania, Lower Saxony, Rhineland-Palatinate and Saxony-Anhalt allow casinos to be owned by private companies.

The states of Baden-Württemberg, Bavaria, Brandenburg, Bremen, Saarland, Saxony, Schleswig-Holstein and North Rhine-Westphalia allow state-licensed casinos.

To the best of Vixio’s knowledge, there is no public information available as to whether the German state of Thuringia allows state-licensed casinos or casinos owned by private companies.

Online casino games are regulated. For more details, please refer to the Online Gambling section of this report.

Casinos are licensed by the state in which they are situated. 

In the GGL’s FAQs, the following are included as games permitted in casinos: 

• According to the gambling laws of the states, casino games in casinos include various table games (big games of chance), such as roulette or baccarat, and slot machines (small games of chance).

The regulatory authorities are the competent gambling regulatory authorities of the states:

• Baden-Württemberg: Ministry of the Interior
• Bavaria: State Ministry of the Interior, for Sport and Integration
• Berlin: Senate administration
• Brandenburg: Ministry of the Interior
• Bremen: Senate Chancellery
• Hamburg: Ministry of Interior and Sport
• Hesse: Ministry for Interior and Sport
• Lower Saxony: Ministry Responsible for Finance (Casino Supervisory Authority)
• Mecklenburg-Western Pomerania: Ministry of the Interior
• North Rhine-Westphalia: Ministry of the Interior
• Rhineland-Palatinate: Ministry of the Interior
• Saarland: State Administrative Office
• Saxony-Anhalt: Ministry of the Interior
• Saxony: Ministry of the Interior
• Schleswig-Holstein: Ministry of the Interior, in agreement with the Ministry of Finance
• Thuringia: Ministry of Finance

There are two industry associations for casinos in Germany. 

• Deutscher Spielbankenverband is the trade body for state-owned casinos.
• Bundesverband Privater Spielbanken represents the interests of private casino operators in Germany.

A list and contact details of state-owned casinos represented by the Deutscher Spielbankenverband can be found here.

A list of privately-owned casinos that are members of the Bundesverband Privater Spielbanken can be found here.

State Casino Licensing:

Baden-Württemberg

The state of Baden-Württemberg allows for the operation of casinos with a permit in the cities of Baden-Baden and Konstanz, as well as in Stuttgart. The state government, with the consent of the state parliament, decides on the approval of further casinos and branches of existing casinos by ordinance. (Section 27, State Gambling Act)

The licence is granted on the basis of an invitation to tender. The call for applications is to be published in the State Gazette for Baden-Württemberg and in the Official Journal of the European Union with a reasonable deadline for the submission of applications (Section 28, State Gambling Act).

Bavaria 

The state of Bavaria allows for casinos to operate in municipalities with state baths and in municipalities that are recognised as spas, health resorts or resorts in accordance with Article 7(1 and 5) of the Local Tax Act. In a government district, a maximum of one casino may be licensed for every 1m inhabitants. (Article 1(2), Act on Casinos).

The operation of a casino requires a permit, which is decided by the State Ministry of the Interior, for Sport and Integration and can only be granted to the free state of Bavaria for a state-owned company at the request of the State Ministry of Finance and Homeland (Article 2, Act on Casinos).

Brandenburg

In the state of Brandenburg, the cities of Potsdam, Frankfurt (Oder) and Cottbus or a municipality bordering on these cities or a municipality that belongs to the area of an office bordering on the cities mentioned may be designated as the location of a casino with the permission of the Ministry of the Interior. (Section 2, Act on the Admission of Public Casinos).

The operation of a casino requires a permit from the Ministry of the Interior, which may only be granted to a legal entity under public law or to a private-law company. The state can fulfil the public task of organising games of chance in casinos and online casino games through a legal entity under public law or a private-law company in which the state of Brandenburg directly or indirectly holds a majority interest. (Section 3 and 4, Act on the Admission of Public Casinos).

Bremen 

In the state of Bremen, a casino can only be run by a company whose shareholders are legal entities under public law or legal entities under private law whose shares belong exclusively to legal entities under public law. (Article 1, Section 2, Act on the Licensing of a Public Casino).

Saarland

In the state of Saarland, up to two public casinos can be permitted and the state government determines the location of the casinos. A casino company may only be owned by a private-law company in which more than half of the shares belong directly or indirectly to Saarland. The authorisation to operate a casino cannot be transferred to third parties or made available to third parties to exercise. (Section 5, Casino Act).

Saxony

In the state of Saxony, casino licences are reserved for the state or a company under private or public law in which only the Free State of Saxony has a stake. The permit is non-transferrable. (Section 2, Act on Casinos).

Schleswig-Holstein

In the state of Schleswig-Holstein, the total number of casinos may not exceed five. The locations are determined by ordinance of the Ministry of the Interior in agreement with the Ministry of Finance. (Section 2, Casino Act).

The casino licence is granted in a transparent and non-discriminatory procedure on the basis of an invitation to tender by the Ministry of the Interior. 

North Rhine-Westphalia 

In the state of North Rhine-Westphalia, a total of six casinos may be permitted. For all casinos, the licence is granted exclusively to one licensee, who is obliged to operate at least four casinos. The locations of the casinos are determined by statutory order by the Ministry responsible for gambling supervision in agreement with the Ministry responsible for finance. (Section 2, Act on the Admission of Public Casinos).

The Ministry for the Interior shall announce the renewed tender process for the licence in the Official Journal of the European Union no later than two years before the licence expires. (Section 16, Act on the Admission of Public Casinos).

Private Casino Licensing:

Berlin

In the state of Berlin, a maximum of two public casinos can be licensed (Section 1, Act on the Admission of Public Casinos).

Hamburg

In the state of Hamburg, a licence for one location (main location) is permitted. Up to six branches can also be permitted in the concession. (Section 2(1), Act on the Admission of Public Casinos)

The approval requirements can be found in Section 2(2) of the Act on the Admission of Public Casinos.

Hesse

In the state of Hesse, one casino each may be built and operated in the municipalities of Bad Homburg vor der Höhe, Kassel and Wiesbaden (casino municipalities) (Section 2, Casino Act). A casino licence can only be granted to a casino municipality with the permission of the Ministry for Interior and Sport (Section 3(1), Casino Act).

If the casino community wishes third parties to carry out gaming operations, this intention must be announced in the State Gazette for the State of Hesse and on the websites of the responsible ministry and the casino community no later than one year before the applicable casino licence expires (Section 5(1), Casino Act).

Lower Saxony

In the state of Lower Saxony,a casino licence entitles an operator to operate up to ten casinos in Lower Saxony. The casino licence must be in writing and must be limited in such a way that it entitles the casino to operate for a period of 15 years. It is non-transferrable. (Section 2, Casino Act)

The casino licence is issued on the basis of a public tender in a transparent and non-discriminatory administrative procedure through an administrative act. It determines the structure of the procedure. 

An application period of at least three months must be set in the advertisement. (Section 3(1), Casino Act)

Mecklenburg-Western Pomerania

In the state of Mecklenburg-Western Pomerania, up to six public casinos can be set up and operated (Section 1(2), Casino Act).

A casino licence is issued by the Ministry of the Interior on written application after an invitation to tender and a decision-making process. It is not transferable. There is no legal entitlement to the granting of the permit. The permit notice must also be made public without its justification, but with instructions on legal remedies by the permitting authority. (Section 2, Casino Act)

The tender for the construction and operation of a casino is issued by the licensing authority in the official gazette for Mecklenburg-Western Pomerania. The call for applications must set a deadline of two months within which the applications must be submitted (limitation period). (Section 3, Casino Act)

Rhineland-Palatinate 

In the state of Rhineland-Palatinate, the operation of one public casino each in Bad Neuenahr-Ahrweiler and Mainz can be approved as the main gaming operation. One gaming branch of the Bad Neuenahr-Ahrweiler casino may be licensed in Bad Dürkheim and Nürburg, and one gaming branch of the Mainz casino may be licensed in Bad Ems and Trier. (Section 2, Casino Act)

The licence to operate a casino is granted for a limited period and is revocable. (Section 3, Casino Act)

Permission is granted for a period of ten years. Upon request, it will be extended once for a period of up to five years; a public tender is not required in this case. (Section 3, Casino Act))

Saxony-Anhalt

In the state of Saxony-Anhalt, the operation of up to two public casinos is permitted and the total number of casinos and branches must not exceed six. The state government determines by ordinance the municipalities in which the operation of casinos or branches may be permitted. (Section 2(3), Casino Act)

The licence to operate a branch may only be granted to those who hold and operate a public casino. (Section 2(1), Casino Act)

The granting of a licence requires an invitation to tender by the Ministry of the Interior. The licence can be granted for a maximum of two years without an invitation to tender if the previous gaming operation cannot otherwise be continued. The call for tenders must be made public. An application period of at least three months must be set in the advertisement. (Section 4, Casino Act)

Thuringia

In the state of Thuringia, a licence to operate a casino may be granted

upon written application from the ministry responsible for finance. The state can use legal entities under private or public law for the operation of the casino and the organisation of online casino games; the shares of which belong entirely to the state or in which the state directly or indirectly has an exclusive stake. (Section 2, Casino Act).

However, the state of Thuringia has explicitly stated in legislation that there is no legal entitlement to being granted a licence. If granted, the licence is limited to a maximum of ten years (Section 2(1), Casino Act). 

Baden-Württemberg

• 30 percent for gross gaming revenue (GGR) in a calendar year of up to €25m.
• 35 percent for GGR exceeding €25m in a calendar year.

The casino tax can be reduced by up to 10 percent of the tax amounts in the first three years of operation of a casino. (Section 33, State Gambling Act)

Bavaria

• 25 percent based on an annual GGR up to €25m.
• 30 percent based on an annual GGR over €25m.

 (Article 7, Act on Casinos)

Berlin

• 30 percent based on annual GGR of up to €10m.
• 35 percent based on annual GGR over €10m. 

(Section 3, Act on the Admission of Public Casinos)

Brandenburg

• 25 percent based on an annual GGR of up to €3m.
• 30 percent based on annual GGR of between €3m and €4m.
• 35 percent based on annual GGR of between €4m and €5m.
• 45 percent based on annual GGR of between €5m and €7.5m.
• 60 percent based on annual GGR exceeding €7.5m.

 (Section 11, Act on the Admission of Public Casinos).

Bremen

To the best of Vixio’s knowledge, information is not readily available regarding casino tax in the state of Bremen.

Hamburg

55 percent of annual GGR. In addition, the casino company has to pay a special levy of 25 percent of GGR every calendar year, but only to the extent that the company has a reasonable profit. 

In addition, for each calendar year, after deducting these taxes, half of the profit that exceeds the appropriate portion, but up to a maximum of another 10 percent of GGR, must be paid over. A profit of 2.5 percent of GGR is considered appropriate. (Section 3, Act on the Admission of Public Casinos)

Hesse

• 25 percent based on annual GGR of up to €25m.
• 30 percent based on annual GGR of between €25m and €50m.
• 35 percent of GGR exceeding €50m. 

(Section 8, Casino Act)

Lower Saxony

Based on GGR minus an annual allowance of €1m per casino. Casino tax amounts to 50 percent of GGR in excess of the tax-free amount. 

If the casino is operated in a municipality in which there was no casino in the last ten years before the opening, the casino tax is reduced in the financial year of the opening and in the four following financial years to 40 percent of GGR in excess of the tax-free amount. As soon as the gross gaming revenue of a casino exceeds €1m in a calendar year, an additional levy is payable on the excess amount. (Section 4, Casino Act)

Mecklenburg-Western Pomerania

• 25 percent based on annual GGR of up to €500,000.
• 30 percent based on annual GGR of between €500,000 and €2m.
• 40 percent based on annual GGR of between €2m and €3m.
• 60 percent based on annual GGR of between €3m and €10m.
• 80 percent based on annual GGR exceeding €10m.

(Section 7, Casino Act)

North Rhine-Westphalia

30 percent of GGR, which increases by a further 10 percent on GGR exceeding €15m in a calendar year. (Section 19, Act on the Admission of Public Casinos)

Rhineland-Palatinate

• 40 percent of GGR on amounts exceeding €1.5m. (Section 6, Casino Act)

Saarland 

• 27 based on annual GGR of up to €45m.
• 37 percent based on annual GGR that exceeds €45m. 

When a new casino or branch is opened, the casino tax is reduced by five percentage points for a period of five years. (Section 14, Casino Act)

Saxony-Anhalt

• 25 percent based on annual GGR of up to €7.5m.
• 35 percent based on annual GGR of between €7.5m and €10m.
• 45 percent based on annual GGR of between €10m and €12.5m.
• 50 percent based on annual GGR exceeding €12.5m. 

(Section 12, Casino Act)

Saxony

• 35 percent based on annual GGR of up to €5m.
• 45 percent based on annual GGR of between €5m and €10m.
• 50 percent based on annual GGR of between €10m and €20m.
• 55 percent based on annual GGR exceeding €20m. 

(Section 12, Act on Casinos)

Schleswig-Holstein

• 30 percent based on annual GGR of up to €10m.
• 40 percent based on annual GGR exceeding €10m. 

The sales tax owed and paid according to the Sales Tax Act based on sales resulting from the operation of the casino will be credited against the casino tax. The additional fee is 10 percent based on GGR of up to €10m and 15 percent for GGR exceeding €10m. (Section 5, Casino Act)

Thuringia

• 25 percent based on annual GGR of up to €2.5m.
• 30 percent based on annual GGR of between €2.5m and €3.5m.
• 40 percent based on annual GGR of between €3.5m and €5m.
• 50 percent based on annual GGR of between €5m and €7.5m.
• 60 percent based on annual GGR exceeding €7.5m.

(Section 3, Casino Act)

Regulated.

Licensing for sports betting, horserace betting, online slots (referred to as virtual slots), and online poker is issued at the federal level. Other forms of online casino games (e.g., table games) may be permitted at the discretion of individual states or through multi-state agreements. Overall, online gambling is primarily regulated at the federal level.

The Interstate Treaty on Gambling provides the legal framework for online gambling in Germany, allowing for the licensing of online slots, online poker and other online casino games

Regulated, at a federal level.

The technical design and commercial approval of gaming machines is regulated at the federal level under the Trade Commerce and Industry Regulation Act and the Gaming Ordinance. The Physikalisch-Technische Bundesanstalt (PTB) is responsible for testing and approving gaming machine models, and maintains a public list of approved machines.

However, the operation of gaming machines within gambling halls and arcades within the individual states is subject to state legislation and regulated at state level, if applicable.

Social Casino Gaming: Unregulated.

Esports: Prohibited.

Licensed sports-betting operators in Germany are permitted to offer fixed-odds bets, but only on sporting events. According to Section 21(5) of the Interstate Treaty on Gambling, such bets can be offered only after the type and specific details have been approved by the Joint Gambling Authority of the States (GGL). Operators must apply to the GGL for authorisation to offer bets on particular events.

A whitelist of approved sporting events is published on the regulator’s website. This list does not include any esports, as esports betting is not permitted under the current regulatory framework.

In addition, Section 3(1) of the Interstate Treaty on Gambling defines a sports event, for the purposes of betting, as a "sporting competition between humans" conducted according to defined rules, thereby excluding esports competitions.

Loot Boxes: Unregulated.

Sweepstakes: Unregulated.

Fantasy Sports: Prohibited.

The GGL expressly reiterates that, according to the Interstate Treaty on Gambling, public games of chance may only be organised or brokered with the permission of the competent authority. In matters concerning online gambling, including fantasy sports, the GGL acts as the competent authority.

Within the scope of its enforcement powers under the Interstate Treaty on Gambling, the GGL reviewed certain formats of “Daily Fantasy Sports” and determined that they constituted illegal gambling. Following this assessment, and after a formal hearing by the GGL, a well-known provider chose to discontinue its offering in Germany.