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

Gaming in Germany Conference returns to Berlin November 10, 2026

Published

1 week ago

March 30, 2026

Wladimir P.

gaming-in-germany-conference-returns-to-berlin-november-10,-2026

The Gaming in Germany Conference is set to return to Berlin on November 10, 2026, bringing together key stakeholders from across the country’s regulated online gambling sector. The event will take place at the DoubleTree by Hilton Ku’damm and is expected to once again attract a wide range of industry professionals.

Organised by Gaming in Europe, the annual conference has established itself as a central meeting point for operators, regulators, legal experts, and service providers involved in Germany’s evolving iGaming landscape.

Key Topics on the Agenda

The 2026 edition will focus on some of the most pressing issues facing the German market. A major highlight will be discussions around the evaluation of the GlüStV 2021 (State Gambling Treaty) and its impact on the regulated online gambling environment.

In addition, the conference will cover a broad range of topics, including:

Regulatory developments and compliance
Market growth and competitive dynamics
Player protection and responsible gambling
Marketing strategies in a regulated environment
The role of eSports within the sector

These sessions are designed to provide actionable insights while fostering dialogue between industry participants and regulatory authorities.

Confirmed Speakers

Although the event is still several months away, a strong lineup of speakers has already been confirmed. These include:

Dr. Jörg Hofmann, Senior Partner at Melchers Law
A senior representative from the GGL (German Gambling Authority)
Dr. Dirk Quermann, President of DOCV
Mathias Dahms, President of DSWV
VP Games at ZEAL Network
Prof. Dr. Christian Piska, University of Vienna
Dr. Nepomuk Nothelfer, University of Agder & Melchers Law
Josh Hodgson, COO at H2 Gambling Capital

This mix of legal, regulatory, and commercial expertise ensures a well-rounded perspective on the challenges and opportunities within Germany’s regulated market.

A Key Industry Meeting Point

Willem van Oort, founder of Gaming in Germany, highlighted the importance of the event:

“After last year’s highly successful edition, we are extremely pleased to return to Berlin in 2026. Our goal is to connect the industry with regulatory and social stakeholders. This year, we expect to gain valuable insights into the evaluation of the 2021 State Gambling Treaty and its impact on the market.”

He also emphasized that the conference remains one of the best opportunities to meet key decision-makers in Germany’s iGaming sector.

Registration and Participation

Industry professionals are encouraged to save the date and secure their place early. The event also offers opportunities for speakers and sponsors to get involved and share their expertise with a targeted audience.

With its strong agenda and high-level networking opportunities, the Gaming in Germany Conference 2026 is set to be a must-attend event for anyone active in the German regulated iGaming market.

The post Gaming in Germany Conference returns to Berlin November 10, 2026 appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

Central Europe

Gaming Laboratories International Named Best Testing Laboratory in the GamingTECH CEE Awards 2026

Published

1 week ago

March 30, 2026

Wladimir P.

gaming-laboratories-international-named-best-testing-laboratory-in-the-gamingtech-cee-awards-2026

Gaming Laboratories International (GLI) has been named “Best Testing Laboratory in CEE” in the GamingTECH CEE Awards 2026. The awards were presented during the Hipther Prague Gaming & TECH Summit. GLI has won this award multiple times in a row.

“We are thrilled to be honored by the industry in this way. At GLI, we have been fully committed to the gaming industry across Central and Eastern Europe for decades, working with suppliers, regulators, and operators to provide the insights and technical expertise that help the industry move forward safely and securely. Being recognized for our efforts is humbling and gratifying,” said GLI Managing Director EMEIA James Boje.

According to organisers, the GamingTECH Awards celebrate the standout companies, teams and individuals shaping the future of gaming, compliance, payments and innovation across Central & Eastern Europe.

The post Gaming Laboratories International Named Best Testing Laboratory in the GamingTECH CEE Awards 2026 appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

Austria

Wazdan strengthens European foothold with Austrian market entry via win2day

Published

1 week ago

March 27, 2026

Wladimir P.

wazdan-strengthens-european-foothold-with-austrian-market-entry-via-win2day

Wazdan has continued its European growth strategy by entering the Austrian iGaming market through a new partnership with win2day, the country’s only licensed online casino operator. The move represents a significant milestone for the developer as it strengthens its footprint in regulated markets across the region.

The agreement will see a selection of Wazdan’s most recognisable titles made available to Austrian players, including 9 Coins, Hot Slot: 777 Cash Out, and Mighty Wild: Panther. These initial releases mark the beginning of a broader rollout strategy aimed at steadily expanding the studio’s presence on the platform.

Gradual Rollout Strategy

Following the initial launch, Wazdan plans to introduce one new title each month to the win2day portfolio. This phased approach allows the operator to continuously refresh its offering while ensuring each addition aligns with player preferences and market demand.

By focusing on quality over volume, the partnership is designed to enhance player engagement through carefully selected content that combines strong visual appeal with innovative gameplay mechanics.

Bringing Signature Features to Austria

In addition to its established titles, Wazdan will introduce Austrian players to its suite of proprietary features that have become central to its brand identity. These include Hold the Jackpot, Cash Infinity, Collect to Infinity, Sticky to Infinity, and Cash Out.

These mechanics are designed to increase player interaction and extend gameplay sessions by adding dynamic elements and customizable experiences. As operators increasingly seek differentiated content, such features play a key role in enhancing retention and overall player satisfaction.

Partnering with a Trusted Operator

win2day is operated by Austrian Lotteries, a long-established organization with more than four decades of experience in the market. As the sole licensed online casino operator in Austria, win2day holds a unique position, combining strict regulatory compliance with a strong reputation for responsible gaming.

The collaboration brings together Wazdan’s expertise in game development with win2day’s established market presence, creating a partnership focused on delivering high-quality and secure entertainment to players.

Andrzej Hyla, Chief Commercial Officer at Wazdan, said:

“Entering the Austrian market with win2day is a significant milestone for Wazdan and a rewarding step in our continued European expansion. Partnering with a trusted, long-established operator allows us to deliver the quality user experience we are known for to a new audience.”

Georg Wawer, Managing Director of win2day, added:

“As Austria’s only licensed online gaming operator, we are committed to offering a carefully curated portfolio of high-quality games. Partnering with Wazdan allows us to combine engaging gameplay with the highest levels of safety and responsibility.”

Strengthening Regulated Market Presence

As the European iGaming landscape continues to evolve, expansion into regulated jurisdictions remains a key priority for leading developers. Wazdan’s entry into Austria highlights its commitment to sustainable growth through strategic partnerships and compliance-driven market entry.

By aligning with a trusted operator and delivering proven content alongside innovative features, Wazdan is well-positioned to establish a strong presence in the Austrian market.

The post Wazdan strengthens European foothold with Austrian market entry via win2day appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.