German regulation would capture minute part of market

TAGs: Germany, H2 Gambling Capital

German flagAn analytical firm today reported that in its current guise, the German plan for regulation of their gambling market would only capture 7% of all iGaming activity.

Quotes from H2 Gambling Capital, carried by eGaming Review, said, “H2 would expect the total gross win generated by the German interactive gambling market to be €833m in 2012 growing to €957m by 2015. However, it is expected that just 7.3% of this would be onshore in the former, with this rising to just 8.2% by the latter.”

Germany’s current plan is for a 16.67% tax on turnover of sports betting with the non-regulation of other products and is being proposed by 15 of the 16 German lander.

March’s announcement sent shockwaves through the industry’s public companies. In the days following the ruling, companies such as Pwin and Betfair saw as much as a third wiped of their value. Some composure was regained after Black Friday. Germany is one of Pwin’s biggest territories and at the current level, the market will not be an attractive one to them.

Schleswig-Holstein is the shiny paradise where all these gaming companies would like to end up. The only lander not to propose the tax is pursuing its own policy of a 20% gross profit tax. Many companies have backed this plan. The other lander seem dead set on the original plan so something in the middle could would be beneficial for all sides were it agreed.

At its current rate, there’s little chance of the German model working. With these figures to back it up, there’s every chance that it will be widely castigated much like neighbors France.


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