The vending machine association in Lower Saxony accuses the state of ruining careers.
The Lower Saxony Association of Slot Machine Businesses is protesting against the impending shutdown of numerous arcades in the area. They accuse the authorities of "shattering livelihoods with a lottery." The proposed measures would result in too few hardship cases being acknowledged, ultimately leading to excessive bankruptcies and job losses.
The state's gambling law mandates that arcades maintain a specific distance from one another. These distance regulations were put in place in 2012 and aim to curb gambling addiction. After July 2017, each arcade must maintain a minimum gap of 100 meters between them. Combining arcades as a response to these regulations will not be possible, as only 12 machines per location will be permitted. Currently, there are approximately 2,000 arcades in Lower Saxony. The association predicts that up to half of these establishments will have to close due to the new rules. The German Association of the Slot Machine Industry has already foreseen tax losses and considerable job losses due to this development. Which arcades will be allowed to keep operating and which will have to cease will be determined through lottery draws. Operators in Lower Saxony are already fighting the use of lotteries to decide their fates, with a thousand such cases pending in the state's courts.
Heinz Basse, the head of the Lower Saxony Association of Slot Machine Businesses, is particularly harsh towards the Ministry of Economics. He claims that this ministry will jeopardize hardship regulations set at local levels, encouraging unwarranted closures. More specifically, operators with long-term leases or burdensome property obligations would be severely affected by these changes.
The number of available licenses is set to decrease significantly
The Ministry of Economics refutes these allegations and backs a corresponding plan for special regulations. For instance, operators on the brink of insolvency will likely be granted a hardship permit. Likewise, those close to retirement will be permitted to carry on with their operations temporarily. Despite this, the ministry is firm about enforcing the State Treaty on Gambling, which mandates significant reductions in the gambling offer.
Stefan Wittke, the ministry's spokesman, states, "We're taking a tight approach to hardship cases; our goal is to reduce slot machine gambling supply." The association, however, feels that this approach is too extreme. Furthermore, operators have limited options as they struggle to move their businesses to new locations due to strict licensing requirements.
While the association is advocating for its industry, the five-year grace period granted to prepare for possible closures was meant to prepare operators for this eventuality. The Ministry of Economics is expected to prioritize recognizing hardship cases for those who took significant steps towards compliance before 2012. Those attempting to secure special permits knowing they might eventually be closed may not be successful with this approach.
20,000 jobs nationwide could be lost
The exact shape of the State Treaty on Gambling varies between regions. However, Lower Saxony's 100-meter minimum distance requirement is relatively lenient compared to proposed regulations in other areas. Regardless, the industry estimates up to 4,000 jobs may be lost in Lower Saxony alone. In Bavaria, 250-meter distances have been proposed, and in Berlin, the minimum gap is set at 500 meters.
The overall impact of the impending national closures remains uncertain. Each state will decide on hardship cases and closure procedures independently. The German Association of the Slot Machine Industry anticipates that one-third of the 70,000 jobs in this sector are at risk. Service staff in arcades are most affected.
The prospect of losing revenue from amusement taxes also raises concerns amongst local governments. Municipalities face financial uncertainties due to the legality of the lottery process for closures. If the courts rule in favor of these companies, local councils could be held accountable for substantial compensation claims.
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Source: www.onlinecasinosdeutschland.com
