The Germany will grant licenses to private from 2012 sports betting operators. This is what announced last Wednesday the Ministers of the Interior of the Germany.
Goldmedia German research firm recently estimated at 1, €5Md potential revenues of the State in the event of 'moderate' opening of the sports betting market.
But obviously, this news is not the happiness of all. Bwin-Party (which recently officially merged) rejects this 16.6% tax on updates. According to them, this proposal with regard to procedures for the award of the licences in Germany goes against European law.
According to Norbert Teufelberger, Co-Director of bwin party, "the proposed tax of 16.6% on bets from sports betting would offer a competitive product and exclude the poker and the casino of the licensing system would encourage people to turn to the black market."
If Bwin-Party worries about these technicalities it is they intend to apply for a licence soon and renew their request to the Länder (German regions). It is even more concerned this new bill that the Germany is the largest market for the game in Europe.
Some time ago, one could read on IGamingFrance.com, the letter of the online gambling industry, about the benefits of Party and Bwin in Germany: "but Bwin generates 25 to 30% of its total revenue of this [German] market, while for Party, the German market generates revenue by 81.9 M$ on total revenues of 44.2 M$ in 2009"more than any other market, including United Kingdom".
The German online game market is estimated at 771 M euros per year.
We understand the idea of a tax to the coffers of the country, but if the players decide to flee legal Games offers to look at offers from games offshore and 'illegal' (and competitive), nothing goes more for the Germany in this field. Offers of games are currently very large and less competitive rooms will be victims of the invisible hand of the market and can no longer survive.
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