MERKUR BETS unexpectedly introduces European Championship activity: no imposed gambling levy on fresh sports wagering platform?
In the later part of April 2024, MERKUR BETS claimed ownership of the sports betting brands XTiP, thereby aligning more intimately with the Merkur Group, previously known as Gauselmann. On the brink of the Economic Major Event, which could potentially impact the bookmakers monetarily, MERKUR BETS opted to fortify its market presence by offering unique incentives, purporting to exempt clients from the betting tax.
Promised Exemption Unfounded
MERKUR BETS operates as a legitimate sports betting service in Germany, having inherited its license from XTiP. Consequently, it is mandated by law to contribute 5.3% of every bet made by its customers towards the betting tax levied by the German state.
Hypothetical Scenario:
Envision a situation where a player wagers 10 euros on the outcome of a game with odds of 2.0. Ahead of time, 5.3% (0.53 euros) is deducted from this bet. Therefore, the stake listed on the betting slip amounts to 9.47 euros. If the player triumphs, they acquire only 18.94 euros, instead of the expected 20 euros.
MERKUR BETS, along with other legitimate betting providers, propagates the idea of waiving the betting tax for their clients. However, contrary to belief, this tax still exists, although MERKUR BETS absorbs the cost.
Process of Compensation:
Think of it this way: if a player wagers 10 euros on odds of 2.0, as in the earlier example, they shall reap the full 20 euros in the event of success. Essentially, MERKUR BETS grants the customer a complimentary bet of 0.53 euros.
Mathematical Manipulation with the Quota?
The truth is that MERKUR BETS must redress the financial loss associated with the waived betting tax through its own profit margins. This raises questions about MERKUR BETS potentially recuperating the misplaced funds in another manner.
Historically, providers that exempted their clients from the betting tax tended to provide slightly inferior odds compared to those that implemented a betting tax on every bet.
Herein, evaluating the odds of the games you intend to wager on proves of great importance. Owing to the multitude of legal and German-certified bookmakers, accessible through the GGL's whitelist, the betting odds are transparent.
Additionally, several betting providers take recourse to boosts and special offers to lure gamblers to their websites.
Is the Sports Betting Tax Inadvertently Bolstering the Underground Market?
In Germany, there is widespread debate regarding the extent to which sports betting can be promoted and how players can be safeguarded more effectively. While some experts advocate for a total ban on advertising, the industry maintains a contrary viewpoint.
The sportsbook operators put forth the argument that advertisements serve to differentiate the legal market from the illicit one. Failure to educate players on distinguishing legal and illegal offers, according to these advocates, would augment the black market.
Moreover, it is believed by some insiders that the 5.3% sports betting tax levied on bookmakers could inadvertently bolster the black market. Illicit providers evade this tax as well as other levies, which enables them to offer more appealing odds.
Sports Betting Enthusiasts Need to Stay Vigilant during the EM
MAJOR EVENTS, such as the EM or WM, tend to bridge the widening gap in sports betting providers during the summer season. These events represent an irresistible opportunity for bookmakers to amass sizable revenue and attract new clients.
As such, it is expected that forthcoming sports betting offers during the football EM 2024 will feature numerous incentives and special bonuses. Through comparing providers and odds, many enticing offers can undoubtedly be discovered.
Despite MERKUR BETS advertising online casinos in Germany with the promise of exempting clients from the betting tax, the levy remains in effect. Being a legitimate sports betting service, MERKUR BETS absorbs the tax, ensuring that it does not increase the stake listed on betting slips.
Interested in online casinos in Germany, players should keep in mind that providers like MERKUR BETS offering tax-exempt bets may potentially alter their odds or profit margins to compensate for the financial loss.
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