The German state of Nordrhein-Westfalen (North Rhine-Westphalia) has passed legislation that will privatize its land-based casinos.
According to reports, the plan, first proposed in May 2018, required a change in the law to allow for private ownership. It passed the state parliament earlier this month, backed by support from the Christian Democratic Union and Free Democratic Party.
The path is now clear for a tender process to sell off WestSpiel shares held by state-owned banking group NRW and select an operator for up to six venues in the state.
WestSpiel currently runs four casinos in the state, in Aachen, Bad Oeynhausen and Dortmund, with the final venue, Casino Duisburg, operating via a subsidiary. It also operates two casinos in the Free Hanseatic City of Bremen.
The casinos generated overall revenue of €107.7 million in 2018, the most recent figures available. Of that, €92.3 million came from Nordrhein-Westfalen.
Two additional venues may be constructed by the new private owner; the concession is open to bidders in European Union countries or the European Economic Area.
The state Ministry of the Interior will oversee the bidding and selection, and grant a 15-year monopoly to the chosen operator. Each property will be subject to a 30 percent gross revenue tax for all income up to €15 million, which then increases by 10 percent for each increment of €15 million, iGB reported.
New venues, meanwhile, can have their tax obligations reduced to one-fourth of gross gaming revenue for the first three years of operations.
Local media reports that German gaming giant Gauselmann Group, which is headquartered in Nordrhein-Westfalen, is likely to be a participant.
Opponents of the bill included the Social Democratic Party, Bündnis 90/Green and Alternative für Deutschland parliamentary factions. They said the taxes from a state-owned operator would be lost to the private sector and predicted that responsible gambling controls would be slackened under private ownership. They also said Nordrhein-Westfalen should instead wait until Germany’s new regulatory regime for gambling takes effect in July 2021.
