Investigators receive significant insights from a confidential source regarding a multi-million dollar tax evasion scheme involving slot machines.
In a bid to combat illegal gambling and tax evasion, Germany has launched a broad strategy targeting illicit financial flows, tax fraud, and financial crime. However, specific details on the issue of tampered slot machines are scarce in recent reports.
The illegal gambling market in Germany is estimated to be worth over 3 billion euros annually. A trial against four individuals, scheduled to begin on October 9 at the Regional Court of Bochum, is related to more than 30 arcades, mainly in North Rhine-Westphalia and Berlin. The defendants are accused of defrauding the German state of approximately 40 million euros through organized tampering of technical records on slot machines and organized tax evasion.
Investigators fear that the actual amount of tax revenue lost may be even higher than assumed, as every device before 2021 could have been easily manipulated. The readout strip used for taxing slot machine revenues until 2021 was easy to manipulate, allowing perpetrators to make the readout strips display only about 50% of the actual turnover, pocketing the saved taxes as black money.
The trial is part of Germany's ongoing efforts to combat tax evasion and illegal gambling. The country has introduced legislative reforms in 2025 to improve tax transparency and tackle treaty abuse, signaling a legal and administrative tightening that indirectly supports combating illegal gambling-related tax evasion.
Key measures in Germanyโs fight against illicit financial flows include prevention through international standards alignment, enhanced financial investigations, focus on asset recovery and international cooperation, and government commitment and budget prioritization. However, the publicly available data do not detail targeted operations or effectiveness metrics specifically related to tampered slot machines in Germany.
Experts generally suggest the following improvements for combating illegal gambling and related tax evasion: the use of advanced technology for real-time monitoring and tampering detection at gambling machines, stricter regulatory oversight and licensing controls for gambling operators, enhanced cross-agency and international collaboration to track and disrupt criminal networks involved in tampered slot operations, and public awareness and whistleblower incentives to uncover illegal practices early.
Tobias Hayer, a gambling researcher from the University of Bremen, stated that the overall situation remains highly tense. Relevant supervisory authorities and police departments are overwhelmed and fear for their safety when investigating those behind criminal gambling. Harsher penalties and advanced investigative methods are particularly lacking to adequately address criminal gambling.
A 44-minute documentary has aired, providing insights into the activities of a "gambling mafia" in Germany. Chanan Goslan (48) was involved in money laundering in the gambling industry between 2010 and 2013. Goslan purchased shares in ten arcades for 1.9 million euros during this period. Goslan contacted the police in 2020 to assist in the investigation against his former business partners.
In conclusion, while Germany's broader anti-illicit flow framework is robust and evolving, concrete expert recommendations on direct technical or regulatory improvements specific to tampered slots are not explicitly documented. Experts advise stronger technical, regulatory, and cooperative enhancements in such niche areas to effectively combat illegal gambling and related tax evasion.
- The trial against four individuals in October is a testament to Germany's ongoing efforts to address crime and justice issues related to casino-and-gambling, specifically the tampering of slot machines and organized tax evasion in online casinos Germany.
- Experts recommend strengthening technical, regulatory, and cooperative measures in niche areas such as casino-games, particularly in countering tampered slot machines, to effectively combat illegal gambling and related tax evasion in Germany.
