The European Commission is investigating Bundesland (German state) tax grants and guarantees offered to “public casinos” to determine if they constitute a form of state aid, in violation of European Union business laws.
SBC News reports that the EC has received several complaints about the tax concessions, and will assess whether additional state-level tax charges placed on the “economic capabilities” of private casino operators have created an unequal marketplace for competition. Of special interest is the Bundesland of North Rhine-Westphalia’s casino act, which is alleged to have granted numerous tax concessions to state-backed operator Westspiel GMBH, essentially creating market dominance for the company across the region.
Under existing law, each German state may set individual licensing conditions and operator taxation rates within its casino legislation. Sixty-five land-based casinos currently operate in Germany; half are owned or partly owned by Bundesland authorities.
