Bremen's casino establishments face closure: Senate expresses doubts towards the FDP
Three out of four gaming venues in Bremen might shut down. The cause is the new mandate of having a minimum 500-meter distance from schools and other gaming venues. The FDP (Freie Demokratische Partei) approached the Bremen Senate with a list of queries regarding this matter.
Exact number of closures yet to be calculated
The Bremen Senate responded to the FDP's queries on February 13, providing thorough responses to the 13 points about the 500-meter limit for Bremen gaming venues.
The Senate reports that the definitive number of gaming venue closures hasn't been determined yet. Over 90 applications for gaming venue licenses are currently being reviewed. Out of these, 11 applications have been withdrawn, and 56 have been rejected.
In 2022, there were 125 gaming venues in Bremen. The Senate estimates that only 25 to 29 of these venues will remain. An additional 14 venues have valid permits until 2027. In Bremenhaven, only 8 out of 29 venues are allowed to operate at present.
Lower tax revenues predicted due to closures
The FDP requested a comment on the projected tax losses due to the numerous closures. Gaming venues are subject to income tax, corporation tax, trade tax, value-added tax, and an amusement tax in Bremen and Bremenhaven.
However, due to the expected decline in the number of gaming venues in the future, tax losses are anticipated.– Bremen Senate, Bremen Parliament
The Bremen Senate states in its analysis that the size of the tax losses depends on the gaming revenue or the number of machines. Thus, the exact tax loss cannot be quantified yet.
In 2023, Bremen collected around 14.5 million euros in amusement tax. The Senate views this as an indication of significant financial investment in gaming venues by citizens. With the reduction of large gaming venue options, citizens' purchasing power would increase, according to the Bremen Senate.
New regulations stir debate
The new regulations in Bremen, which require a 500-meter distance between gaming venues and schools, have been in effect since July 1, 2023. This has led to a substantial number of venues having to close. The previous minimum distance was 250 meters.
In the summer of 2023, Bremen gaming venue operators filed an urgent appeal to overturn the new regulations. However, this appeal was rejected by the Bremen Administrative Court.
As a result, approximately 75 percent of all gaming venues in Bremen will have to close. The closure date depends on when each venue's permit expires. The last permits of venues that do not meet the minimum distances will expire by January 2027.
Mainly service sector jobs at risk
The FDP asked the Bremen Senate how many jobs would be lost due to the gaming venue closures. The Senate cannot provide precise figures on this either.
However, the Senate believes that the majority of the jobs lost would be in the service sector, with many being mini-jobs. The gambling sector is primarily a low-wage sector, as supported by statistics from the Federal Ministry of Labor. The Senate expects that service staff would likely find employment opportunities in other sectors.
Reduced availability could help combat gambling addiction
The FDP asked the Bremen Senate how the pending closures could impact player protection in its view. The Senate views the reduced availability as a successful preventive measure, leading to reduced gambling, decreased demand for treatment, and fewer problem gamblers.
In the Senate's opinion, this approach is similar to other addiction areas (like alcohol and nicotine), where reducing the supply is considered a cornerstone of evidence-based preventive policy.– Bremen Senate, Bremen Parliament
In 2023, according to preliminary figures, 126 individuals with their own gambling problems in Bremen sought help from counseling centers. Of these, 118 were men and 8 were women.
As a result, the Bremen Senate hopes for a reduction in gambling-related damages. However, it is also aware that the significant reduction in gaming venues could carry other consequences, such as population outmigration from Bremen, which cannot be predicted at this time.
The Bremen Senate acknowledged the FDP's interest in the potential impact of the gaming venue closures on tax revenues, stating that the exact tax loss cannot be quantified yet due to the variable gaming revenue and number of machines.
In the wake of the new regulations, the Bremen Senate views a significant reduction in the number of gaming venues as an indication of increased citizens' purchasing power, indicating a potential shift in financial investment towards other sectors.
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