A Goldmedia survey conducted on behalf of Entain, Flutter Entertainment and Novomatic subsidiary Greentube indicates that a proposed 5.3 percent stake tax on German gaming could drive 49 percent of players to black market casinos.
If payout ratios of online slot machines are reduced due to the tax, those players will go bargain-hunting. According to iGamingBusiness.com, unregulated sites could offer payout rates of around 98 percent, versus 90 percent or so for regulated sites.
Thirty-one percent of players surveyed said they already use black-market sites on a monthly basis, and 27 percent use offers which don’t conform to current guidelines. Research showed that illegal offers got “significantly more hits” than legal ones.
“The study shows that currently 73 percent to 75 percent of the regular use of online gaming is based on offers that are fundamentally different to the new regulatory requirements,” a statement from Goldmedia read.
“In the study, the selection preferences of the players for online gaming offers with a focus on online slots were determined. The result is that for players in Germany, payout rates are more important than a German license and the associated security aspects.”
The 5.3 percent turnover tax has been approved by the Federal Council (Bundesrat) but requires final approval from the legislature.
