Operator News
Germany – EU Commission to examine benefits of public casino operators in Germany
By Phil - 12 December 2019
The European Commission has launched an in-depth investigation to examine whether the special tax treatment of public casino operators in Germany is compatible with EU state aid rules.
In a separate investigation, the Commission is also examining the measures taken in North Rhine-Westphalia for the public casino operator operating there.
In Germany, public casino companies are subject to a special tax regime that replaces a number of otherwise applicable general taxes, in particular corporate, income and business taxes. The Commission has received several complaints from gambling companies concerning certain aspects of this specific tax regime and an alleged guarantee of the profitability of public casino operators.
The purpose of the formal investigation procedure is to clarify whether this specific tax regime entails an unjustified economic advantage for public casino operators in the form of a lower tax burden compared to normal tax rules.
In the context of certain measures in favour of the public casino operator operating in North Rhine-Westphalia, the Commission will also assess, on the basis of complaints, whether alleged annual loss compensation payments and a capital injection by North Rhine-Westphalia in 2015 in favour of the public casino operator in the region would give the operator an undue advantage have procured.
The initiation of an in-depth investigation gives Germany and interested third parties the opportunity to comment. It does not prejudge the outcome of the investigation. At the same time, the Commission concluded that the concession to operate another public casino in North Rhine-Westphalia did not constitute aid.
Caption: Duisburg casino
