Central Europe

A Balanced Take on Optimal RTP for New Turnover Taxation in Germany

Published

5 years ago

May 19, 2021

Reading Time: 4 minutes

What should be the optimal return to player (RTP)? This is a hotly debated question in the German gambling industry following the changes in the turnover taxation that are scheduled to come into force from 1 July 2021.

While several figures and many theories have been advanced, we found particular LinkedIn post by Robert Lenzhofer, Co-Founder and CEO of Hölle Games, particularly well-balanced and insightful.

We are reproducing the post with minor changes here, with permission from the author. You can find the original post here.

Over to Mr. Lenzhofer now…

I have published a LinkedIn poll 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?”

After one week and 120 votes from industry experts, the poll showed the following result:

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

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.

Central Europe

ZEAL launches Dream Car Raffle charity lottery in Germany

Published

2 days ago

April 14, 2026

Wladimir P.

zeal-launches-dream-car-raffle-charity-lottery-in-germany

ZEAL has launched Dream Car Raffle (Traumautoverlosung), a new charity lottery offering in the regulated German gambling market. The company said the product is developed in-house and adds to its portfolio alongside its lottery brokerage business.

Traumautoverlosung is operated by Dreamify gGmbH, a wholly owned subsidiary of ZEAL, while marketing and sales is handled by Lotto24 AG, also part of the group. ZEAL said the launch follows the Dream House Raffle (Traumhausverlosung) introduced in 2024 and freiheit+, making Traumautoverlosung its third charity lottery in Germany.

“With Traumautoverlosung, ZEAL continues its strategy of complementing its traditional lottery brokerage business with proprietary products, targeting new customer segments and reducing its dependence on jackpot-driven cycles of state lotteries,” the company said. Stefan Tweraser, CEO of ZEAL Group, added: “We are pleased to further expand our core business with attractive new products. Traumautoverlosung is another step towards diversifying our portfolio and reaching new target groups.”

ZEAL said Traumautoverlosung is structured with a limited number of tickets and a guaranteed winner. At launch, a Porsche 911 GT3 RS will be raffled, with a total of 250,000 tickets available. “With Traumautoverlosung, we are focusing on cars that are otherwise out of reach for many people – highly desirable models that are often difficult to obtain on the market,” said Michael Lee, founder of Traumautoverlosung. “Our goal is to translate this demand into a transparent, digital product with clearly defined mechanics.”

As a charity lottery, the product allocates at least 20 percent of ticket revenue to charitable causes, according to ZEAL. The company said the initiative will partner with Johanniter in 2026.

The post ZEAL launches Dream Car Raffle charity lottery in Germany appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

Best Slot Developer

Amusnet Named Best Slot Developer at GamingTECH Awards 2026

Published

1 week ago

April 7, 2026

Wladimir P.

amusnet-named-best-slot-developer-at-gamingtech-awards-2026

Amusnet has been awarded the title of Best Slot Developer at the GamingTECH Awards 2026, marking a notable acknowledgment of the company’s innovative and technical prowess. Unveiled on March 25th in Prague at the 10th-anniversary edition of the Prague Gaming & TECH Summit, this recognition emphasizes the influence of the company’s varied, high-achieving slot collection throughout Central and Eastern European markets.

This accolade highlights the organization’s capacity to provide a diverse array of titles that satisfy the changing needs of both operators and players. By prioritizing technical dependability, dynamic animations, and captivating features, Amusnet has positioned itself as a key partner in the area.

“We are truly honoured to receive the Best Slot Developer award,” commented Julia Peeva-Sertov, CEO & Director at Amusnet Gaming, Malta. “This recognition reflects the dedication of our entire team and our commitment to delivering exceptional gaming experiences for players. Empowering our partners continues to inspire us to push boundaries and set new benchmarks in the industry.”

The Prague Gaming & TECH Summit united industry leaders and top executives to explore the connection between gaming, AI, and fintech. During the event, representatives from Amusnet Gaming participated in strategic networking and high-level discussions within the industry, enhancing connections with partners in the CEE area. Winning this title at a milestone anniversary occasion reinforces the company’s position as an innovative leader in the digital entertainment industry.

The post Amusnet Named Best Slot Developer at GamingTECH Awards 2026 appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

Central Europe

Gaming in Germany Conference returns to Berlin November 10, 2026

Published

2 weeks 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.