TLDR The Economic Council, a group linked to the CDU, wants changes to Germany’s 2021 State Treaty on Gambling. The treaty review is expected to finish by the end of 2026. Critics say the 5.3% tax on stakes for online slots hurts licensed operators. Illegal betting sites reportedly outnumber legal ones by eleven to one. The proposal calls for simpler licensing and a focus on cutting illegal gambling.
Germany’s gambling rules may be heading for another shake-up. A group tied to the CDU party has put forward a proposal to change the country’s 2021 State Treaty on Gambling. The timing matters because the official review of that treaty is set to wrap up later this year.
The group behind the plan is the Economic Council. It has close ties to the CDU and says the current rules are not working as intended.
Why the Current Rules Are Under Fire
Germany’s regulated gambling market has struggled since the 2021 treaty took effect. At the same time, illegal gambling activity has kept growing.
A big target of the criticism is the tax on online slots. Licensed operators pay 5.3% on every stake placed, not on revenue earned. Many in the industry say this makes it harder for legal businesses to compete.
There is also a €1 cap on each spin for online slot games. Operators have long said this limit pushes some players toward unlicensed sites instead.
Trade groups have data to back up these concerns. The German Sports Betting Association says illegal betting sites outnumber licensed ones by eleven to one.
Research firm H2 Gambling Capital estimates that only 22% to 25% of gambling activity currently happens through legal channels. The firm expects that number to drop to around 20% by 2030 if nothing changes.
What the Proposal