The German state earns billions annually through taxes on regulated gaming in Germany. These tax revenues are a matter for the federal states and therefore differ according to the federal state and type of game, depending on the respective gambling offer. In the following, we consider the amount of income from taxes on the individual types of gaming in the regulated market for both Germany as a whole and for the individual federal states.
In Germany, the state has the monopoly on the organization of games of chance and holds a hand on gaming revenues. Since a large part of the income ends up with the tax authorities, some citizens see the entire stake as a "voluntary tax". The fact is that the taxation of gambling is regulated in the German gambling laws of the federal states and can therefore differ from country to country. But what types of taxes are there for gambling?
The online gaming market, which has not yet been regulated, has not yet been taken into account, but the upcoming legalization in summer 2021 means that further tax revenues can be expected in the future.
You can also read on Casinoonline.de how it behaves with taxes on income from gambling from a player's point of view.
Germany generated tax revenues of around 1.5 billion euros in 2019 through the lottery tax. The other taxes include the casino tax of around 34 million euros.
All German federal states together collected racing betting and lottery tax of 1.97 billion euros in 2019. After deducting the 1.5 billion euros in lottery income, the result is a little less than 500 million euros for horse and sports betting.
The total tax revenue of all federal states in Germany amounted to 34 million euros in 2019. However, only the state casinos are included here, not the arcades operated by private providers with a license.
In 2013, the German state generated around 1.8 billion euros in tax revenue from commercial gaming machines. In the following year, 2014, the tax income was around 1.12 billion euros.
How much do the individual countries take in taxes on gambling? In the following, we show the total income and also break down the racing betting and lottery tax, the casino tax and the entertainment tax for 2019 by federal state.
The following table shows the tax revenue from gambling for the year 2019 in the individual federal states and Germany as a whole for the different types of tax. All amounts are given in millions of euros (except for the total amount).