The Impact Of Sports Betting On The German Economy

Since this method does not appear realistic in practice, the bookmakers have been made responsible, so these taxes are to be understood as an indirect tax, as they are to be paid by the betting providers. Because of this third-party liability, every bookmaker who offers sports betting in Germany is obliged to pay the betting tax to the tax authorities.

Legal anchoring of the betting tax

The betting tax is laid down in the Racing Betting and Lottery Act. This dates back to 1921, but the amendment was not made until 2012. The betting tax was originally introduced to curb the already well-advanced issuing of sports betting licenses by the Ministry of the Interior in Schleswig-Holstein. With the inclusion in the racing betting and lottery law, this provision was anchored in federal law and the subordinate state ordinances were put in their place. The proceeds from this indirect tax benefit the federal states. The betting tax is of course extremely lucrative, regardless of whether the player and thus the bet wins or loses; the betting tax must be paid by the operator in any case. The introduction of the betting tax brought about some rapid changes in the market, and the reactions were very different. Some providers withdrew immediately from the German market, but some of them have now re-entered the market. Others passed the five percent tax on to the customer directly; And a small part of the bookmakers have decided to take on the additional costs for the customer in order to be able to shine particularly well in the industry comparison.

How and where can betting providers be compared?

Actually, the tax is to be borne by the customer and passed on to the tax office, but since this cannot be controlled or inadequately controlled in practice, the tax is borne by the betting provider. Many of the providers pass this tax burden on directly to the customer! It is not uncommon for the stake to be reduced when a bet is placed. For example, although ten euros are staked, in this case, the net stake is only 9.50 euros. It is clear which bookmaker can bet without taxes and the providers are rated on the basis of various criteria. It is therefore quick and easy to get a detailed overview.

Are Sports Betting Really Legal?

While the UK has long been considered the largest market for sports betting, this sector of the economy is nowhere near being exhausted in some other countries. In the USA, for example, these are banned in all states except Nevada. However, many economic experts consider this strict ban to be grossly negligent behavior. The profit made by legal sports betting in the United States in 2017 was around $ 150 million. The state of Nevada has made a lot of money during this period and at least recorded an increase of 4.8 million US dollars. In the USA in particular, customers are being driven into the black market by the ban, which is by far the most pronounced in the USA. Assuming the US allowed sports betting in all states, the American Gaming Association estimates that tax revenues of $ 8 billion and the creation of hundreds of thousands of new jobs would be possible. According to estimates, almost 80 percent of all bets worldwide are made on the black market, with a turnover of around 1.8 trillion US dollars. A considerable value, from which no state also deserves, as many of them still do not rely on the potential of this economic sector.

Conclusion and tendencies for further spread

It remains to be seen how the sports betting industry will develop over the next few years and, above all, how the state will react to it. It can already be stated, however, that an increase in both domestic and foreign players and their investments is expected. But the betting providers are also constantly changing; it is to be expected that the betting markets will be expanded further, new events will be added and an even wider range of betting options will be created. The bookmakers are exposed to constant competitive pressure and always have to keep up with the times. This is also to be advised to the states and countries, as they are far from fully exploiting the full potential of the economic factor of sports betting. If you want to play casino and do not want to bet on sports betting you can visit 우리카지노 to find out other details of the games.

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