Illegal gambling activities harming the public at large.
Chaiman of the German Lotto and Totoblock, Torsten Meinberg, expresses anger towards foreign competition and urges for a consistent policy.
He stated with fervor in the "LOTTO-Über-Kreuz-Gespräch" that, "The business model of the black lottery providers is based on tax evasion and harms the public interest." This conversation took place towards the end of February, addressing the controversial topics of gambling and tax evasion.
The 16 federal states' lottery companies, which join to form the German Lotto and Totoblock (DLTB), are facing immense pressure due to the thriving online sector. Despite the fact that only DTLB members possess lottery licenses and thus monopoly status, some experts predicted the end of traditional lottery games.
European gambling groups and private lottery providers, located in tax havens such as Malta and Gibraltar, ardently expand their digital operations across national boundaries and infiltrate the German market. They often exploit the European freedom to provide services, predominantly operatng in legal loopholes without an explicit German gambling license or direct supervisory authority. Until now, these entities have been relatively undisturbed by politicians.
It's at this juncture that Meinberg demands action from the state: "Tax and legal havens must be combated more vigorously. Especially the European Council has a role to play here. But the German government can also take further steps to ensure that the course we've set is consistently pursued." The term "gambling for the public good in Germany" has made an appearance in the discourse.
Experts like Prof. Thomas Dünchheim, an expert in international commercial law with Hogan Lovells International, estimate annual tax losses in the millions. A staggering 76 million euros, in terms of turnover tax alone, are assumed to be lost to the German tax authorities each year. Dünchheim added, concerning online providers with insufficient German licensing, "All services in Germany are subject to taxation regardless of legality. Pursuant to the European VAT Directive, gambling and lotteries have been taxed based on the country of destination since 2015, hence subject to German VAT."
DLTB CEO Meinberg closes with a reaffirmation of the charitable functions of the lottery block as substantial taxpayers and project sponsors: "Gambling that contributes to the common good in Germany has shown its effectiveness. Numerous practical projects, including those that combat addiction, are made achievable through the DLTB. Each year, the DLTB contributes approximately 2.8 billion euros to state budgets and the common good. We should be careful not to jeopardize this." In reality, post deductions, German lottery companies have approximately 200 million euros remaining from their collective income of roughly 7 billion euros.
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Source: www.onlinecasinosdeutschland.com
