Central Europe

The Right RTP for the German 5.3% Turnover-taxation?

Published

5 years ago

May 13, 2021

Reading Time: 4 minutes

So, you may have seen a poll I have published recently with the title: “If/when Germany introduces the 5.3% turnover tax, what RTP rate is best suited considering both game-play and effective tax-paid?” If you haven’t seen it, here is the poll again for reference:

https://www.linkedin.com/feed/update/urn:li:activity:6790660730564825088/

There are a few ways of looking at this, but I think the key take-away is that the industry this poll represents is fairly evenly split between above 90% RTP and below 90% RTP.

The tax explained

First, to ensure we are on the same page, a quick explanation of the tax proposed:

Currently a 5.3% tax on turnover has been proposed and a draft-legislation does exist. I won’t go into the politics and the thinking behind this, but rather try to analyze the numbers.

A 5.3% tax on every bet being placed on an online slot means an operator can not offer an RTP over 94.7%. At 94.7% RTP, the operator would break even exactly on a bet-level, but obviously would lose money as marketing, employees and general operation have to be financed somehow. Considering financial overhead in any operation, that means the maximum RTP a casino is technically able to offer while avoiding bankruptcy is probably around 93% or more likely at 92%. This is the top ceiling and at the same time too high to be profitable.

Now, there is a bit of uncertainty and I’m also not entirely sure if the number to calculate against is 5.3% or rather 5.033%. The tax is 5.3% on turnover, meaning a 1 EUR bet causes a tax of 5.3 cents, which totals to 1.053 EUR. The tax-portion of 1.053 EUR is less than 5.3%. 100*5.3/(100+5.3) = 5.033 resp. 5.033%. I do calculations here in this document based on 5.3%.

How to balance RTP and profitability

We’ve established above that 93% or 92% is the top ceiling, but where is the bottom?

The table below shows how a Slots-operator will be taxed, calculated into the GGR-equivalent %-age number and cross-referenced with RTP. For reference, many other jurisdictions in Europe offer a GGR-based tax-rate of around 20%. As you can see from the table below, the 5.3% tax-rate on turnover wouldn’t be so bad, if players would accept 80% RTP. At 80% RTP, the GGR-equivalent tax-rate is 26.50% and thus a competitive tax-rate.

The coloring I have done here may be slightly biased, especially in terms of RTP so please take with a grain of salt. But if you roughly accept that the red-area you want to avoid on the RTP and on the GGR-% side, then you end up with an RTP-bandwidth between 84% and 91% to play with.

Further, and again granted you accept the coloring, an operator obviously wants to find an RTP in the green and a GGR-% in the green. Here we arrive at 88% and 89% RTP.

Now, a lot has been written that players will not accept such low RTP’s as say 84%. There are counter-arguments made that in land-based slots the RTP is exactly at that level and actually 88% is on the higher-end in land-based casinos.

On the other hand, for many market-participants the number “9” is a psychological blocker. Players, Affiliates and a couple of Slots-Studios I speak to feel very anxious offering product below 90% as this number still feels somewhat close to the industry-average of 94 to 97%. 89% sounds very different than 90%, although it is “just” 1% in RTP dropped.

Sportsbook vs. Casinos

It will be interesting to watch if Sportsbook or Sports-led brands will choose a differing RTP-rate than Pure-Play Casinos. A Sportsbook can more easily stay on a higher RTP and just pause all short-term expenses (bonus, marketing, etc.) and focus on cross-sell. A pure-play Casino will have to look a lot more closely on bottom-line and in my opinion will have a hard time offering e.g. 90% RTP-Slots as the GGR-equivalent tax-rate is 53%.

Game-Mechanics?

Will there be new Game-Mechanics invented to combat this problem? Looking at the table above again, the second column states how many spins a player on average can make until 1 EUR is spent depending on the RTP-Level. At 95% RTP this is 20 spins. Now, if a Game-Mechanic can be invented that provides a low mathematical RTP while at the same time provides a similar amount of real spins, then this could be a solution to the problem.

Conclusion & in my opinion

The above explanation is in no way complete – there are actually interesting studies which analyze how much an RTP is “felt” by the player and there is probably very good data the land-based industry has to offer.

But, to move away from being neutral, here’s what I personally think: The reality will be that everyone will push the RTP down and experiment with the lowest acceptable RTP as this maximizes their income. As such, come 1st of July, we’ll see a lot of RTP’s experimented with. Imagine you are a pure-play casino and you can provide a Game-Mechanic that feels good to the player and has a nice session length, while staying at or below 40% GGR-equivalent-tax. I believe things start to fall apart financially for an operator at 40% tax-rate. If you own your own media-assets and have good deals with your suppliers and run a tight operation then a 40% tax is possible to do really well in Germany. That means, the average-RTP across the portfolio will have to be around 87–88%. I think you can mix in 91% games into the portfolio just so that is part of the portfolio too, but the majority of revenue of the white-market in Germany will in my opinion come from Slots around 88% RTP. And since some games will be mixed in at 90/91% you can expected some slots to be mixed in at 84/85% rate as well.

Update 07/05/2021:

I didn’t mention in this article two other potential solutions. One is directly taxing the customer on the bet and the other is directly taxing the customer on a win (paying the tax-authorities on a bet-level, but collecting funds/tax from players on a win) like currently most sportsbetting companies do in Germany. These solutions also lower the effective-RTP-rate to the customer (just charged at a differing touch-point).

The main issue with those solutions is that an operator ends up with an equivalent-GGR taxation of around 57% which isn’t sustainable. Here are some calculations of these alternative solutions: DE 5.3% Taxation Calculations

By: Robert Lenzhofer, CEO & Co-Founder at Hölle Games

Central Europe

Oddin.gg Wins the Deloitte Technology Fast 50 Central Europe for the Second Year in a Row

Published

18 hours ago

November 25, 2025

Niji Narayan

oddin.gg-wins-the-deloitte-technology-fast-50-central-europe-for-the-second-year-in-a-row

Reading Time: 2 minutes

For the second consecutive year, Czech-based esports technology company Oddin.gg has taken the top spot in the Deloitte Technology Fast 50 Central Europe, underscoring the company’s sustained momentum and highlighting the global demand for an innovative and high-performing esports betting infrastructure.

The Deloitte Technology Fast 50 Central Europe program recognizes the region’s fastest-growing technology companies across sectors including fintech, software, communications, environmental tech, hardware, healthcare, media and entertainment. Rankings are based on percentage revenue growth.

Commenting on the win, CEO and Co-Founder Vlastimil Venclík shared: “Being recognized by the Deloitte Technology Fast 50 for the second year in a row is an honor. It reflects not only our growth, but the trust our partners place in us and the hard work of our team. Esports is evolving quickly, and we’re committed to delivering reliable, high-performing infrastructure that helps operators succeed, now and in the years ahead.”

Founded in 2018, Oddin.gg is dedicated to elevating the excitement of digital esports competitions and equipping sportsbook operators with reliable solutions that maximize engagement, betting activity and profitability.

Vlastimil Venclik credits the company’s growth to its industry expertise, its focus on the betting vertical, and its forward-thinking, customer-first product strategy.

“Our team blends former professional players with data scientists and engineers. That mix gives us the deep esports knowledge and technical capability needed to solve real challenges for operators and deliver measurable results, while also reducing their exposure to risk.”

Oddin.gg stands apart by offering a unified, end-to-end ecosystem for esports betting, allowing operators to work with a single vendor for odds feeds, risk management, widgets, BetBuilder, iFrame and 24/7 eSimulators while also producing and managing everything in-house. This integrated approach is a core pillar of Realms Group, where Oddin.gg leads the effort to shape how audiences experience live digital entertainment.

“We’re expanding in two major directions. First, by building faster, smarter, more interactive products that deepen engagement for fans and bettors. Second, by growing geographically, supported by recent certifications in Brazil as well as earlier approvals in the United States and Canada. This makes us one of the most secure and trusted providers in the market,” Venclik said.

The post Oddin.gg Wins the Deloitte Technology Fast 50 Central Europe for the Second Year in a Row appeared first on European Gaming Industry News.

BC.GAME

BC.GAME Wins “Best Crypto Casino” at SiGMA Central Europe Awards 2025

Published

2 weeks ago

November 14, 2025

Niji Narayan

bc.game-wins-“best-crypto-casino”-at-sigma-central-europe-awards-2025

Reading Time: < 1 minute

Global crypto entertainment brand BC.GAME has been named “Best Crypto Casino 2025” at the SiGMA Central Europe B2C Awards, held this year in Rome. The result has been published via SiGMA’s official channels and industry media, with BC.GAME listed among the winners in the cryptocasino operator category.

As part of the SiGMA Central Europe 2025 event in early November, the B2C Awards focused on operators that have shown notable performance in online entertainment and sports betting over the past year. The “Best CryptoCasino 2025” category is specifically dedicated to platforms built around crypto assets as a core feature of their offering.

According to award-related communications and public review sources, BC.GAME’s recognition is linked to its integration of crypto payments, multi-vertical product line-up and ongoing development in Web3-oriented use cases. Several third-party reviews have highlighted BC.GAME as a representative example of a platform that supports multiple cryptocurrencies, combines casino and sports content, and designs features with on-chain users in mind.

BC.GAME noted that the award serves as a form of interim feedback on the platform’s long-term commitment to the crypto segment. The company plans to continue improving the user experience around crypto payments, cross-device product performance and content operations, while expanding sports and esports-related partnerships in markets where such activities are permitted by local regulation.

As a crypto-native operator, BC.GAME incorporates mechanisms such as provably fair verification into its product design and combines these with a native token and promotional structures to deliver an integrated casino and sports experience for crypto community users. With continued nominations and awards within the SiGMA framework and other international programmes, BC.GAME is increasingly regarded as a long-term player in the crypto entertainment vertical.

The post BC.GAME Wins “Best Crypto Casino” at SiGMA Central Europe Awards 2025 appeared first on European Gaming Industry News.

ADMIRAL Pay

NOVOMATIC Italia Showcases Innovation and Responsible Growth at SiGMA 2025

Published

2 weeks ago

November 12, 2025

Niji Narayan

novomatic-italia-showcases-innovation-and-responsible-growth-at-sigma-2025

Reading Time: 3 minutes

NOVOMATIC Italia played a key role at SiGMA Central Europe 2025, one of the leading international events for the gaming and digital technology industry, which was held in Rome from November 4 to 6. The Group showcased ADMIRAL Pay, the payment institution authorised by the Bank of Italy, and Quigioco, its online gaming brand, presenting an integrated and sustainable vision for the future of payments and digital entertainment.

The synergy between the Quigioco gaming platform and ADMIRAL Pay was at the heart of NOVOMATIC Italia’s presence at SiGMA Central Europe 2025 was. This integrated solution offers legal gaming operators a concrete response to the ongoing transformation of the market, particularly in terms of regulatory compliance.

The combined structure of Quigioco and ADMIRAL Pay ensures fully compliant financial flow management by providing operators with technologically advanced tools that are aligned with the latest Italian legislative requirements. This infrastructure represents an integrated payment system and a complete digital ecosystem that is designed to support operators in an increasingly regulated and competitive market. The model is complemented by B2C solutions, including APay E-Wallet and APay Card, which interface seamlessly with the B2B architecture to expand additional growth opportunities.

Driving the market with technology and security

The collaboration between ADMIRAL Pay and Quigioco marks a key milestone for the Italian market: by adopting integrated digital payment systems, online gaming platforms can now deliver increasingly personalized and secure experiences to their users.

ADMIRAL Pay technology enables rapid conversion between cash and digital currency, ensuring instant and secure transactions that meet the highest international standards. For PVRs (Punti Vendita Ricarica: venues authorised to sell recharges for online gaming) and operators, this means access to an advanced payment tool that simplifies operations and guarantees efficiency, even during peak periods.

Meeting new regulatory and market demands

The digital payments and gaming sector in Italy is now subject to increasingly stringent regulatory standards that are designed to ensure maximum security, traceability and transparency. The integration of Quigioco and ADMIRAL Pay fully meets these requirements, offering a unique solution that strengthens compliance while enhancing the customer experience. By managing financial flows in a compliant manner, operators can reduce risks and provide players with immediate and secure access to their funds. This model translates into trust and long-term loyalty, creating value across the entire supply chain.

Responsibility and leadership: the pillars of the future

SiGMA Central Europe 2025 was also an opportunity to highlight NOVOMATIC’s commitment to promoting responsible gaming and continuous product innovation. The target is to maintain industry leadership by investing in technologies that not only enhance the user experience but also ensure maximum player protection and operator transparency.

“Our goal is to extend the success and expertise that have always defined NOVOMATIC Italia in the land-based sector into the digital world. We want to offer operators and players an integrated ecosystem that combines technology, security, and innovation, reaffirming our Group’s leadership in online gaming,” said Markus Buechele, CEO of NOVOMATIC Italia.

This strategic vision was recognized when NOVOMATIC Italia received the “B2B Industry Leader Italy 2025” award at the SiGMA B2B Awards, in honour of the company’s excellence and ongoing commitment to an innovative, responsible and sustainable approach to development. The Group is not only addressing evolving market and regulatory challenges but also paving the way for a future in which innovation and sustainability move forward together.

Through ADMIRAL Pay, Quigioco and the major innovations showcased at SiGMA, NOVOMATIC Italia demonstrates how the convergence of digital payments and online gaming can drive growth, security, and long-term sustainability across the industry. By being built on innovation, responsibility and strategic vision, this model is positioning the company at the forefront of a tech-driven and sustainable future.

The post NOVOMATIC Italia Showcases Innovation and Responsible Growth at SiGMA 2025 appeared first on European Gaming Industry News.