Gambling Industry News For the Past Week: What Happened in Ukraine, Germany and Latvia
How is the process of adopting new legislation on taxation of gambling business progressing in Ukraine? What city has launched another legal venue with slot machines? What decision did the European Commission make regarding the new online slots tax policy in Germany? And what casino will open in Riga instead of Shangri La Riga? Read more about the latest news on the global gambling market in our weekly digest.
The Verkhovna Rada sent a draft law on taxation of gambling business for revision
On June 3, the Verkhovna Rada failed to pass the bill No. 2713-d on taxation of the gambling business. The document was sent to the relevant committee for revision and shall be prepared for the second first reading. The corresponding decision was supported by 229 deputies.
The draft law in the current version assumes that Ukraine will establish a single GGR tax rate for bookmakers, casinos and lotteries. Its size is proposed to be set at 10%. Income tax will be 18%.
The document also suggests that personal income tax and military levy will be charges on winnings in the amount of 8 minimum wages (UAH 48,000).
People's Deputy Oleh Marusiak, initiator of the bill, noted that requirements specified in the document will contribute to the fact that the majority of market participants will start working legally. In addition, this will allow attracting foreign operators to Ukraine.
Another legal hall with slot machines opened in Kyiv
According to Login Casino online edition, the new gambling establishment welcomes visitors at the three-star Premier Hotel Lybid. The slot machine hall was opened by Lord gambling club.
The venue is located on the basement and first floors of the hotel complex. The hall is open around the clock. Its total area is 389.1 sq.m. The minimum bet to participate in the game is 10 kopecks.
Lord gambling club received a license to open a slot machine hall on April 2 of this year. And in May, the company became a licensee for 50 slot machines.
The European Commission disputed the decision to introduce a tax on online gambling in Germany
The European Commission has appealed against the proposal of the Federal Council of Germany to establish a turnover tax of 5.3% in the country, which should be levied on every spin of a slot machine and a bank at online poker.
Complaints about the new tax conditions have been filed by the German sports betting organization and the European Gambling and Betting Association (EGBA). They noted that turnover tax at online slots and online poker contradicts the EU rules on state aid and gives an unfair advantage to operators doing business in the offline segment of the market.
According to EGBA Secretary General Martin Hayer, the introduction of the tax rate will lead to German players turning to illegal gambling websites. In addition, such requirements would give a tax advantage to land-based casinos.
Experts, in turn, emphasize that the imposition of the tax will result in the reduction of return rate to online casino slots players to 90%. At the same time, for unlicensed operators, this figure can be up to 98%.
Casino at Grand Hotel Kempinski Riga has changed its owner
Shangri La Riga owned by Storm Latvia has been acquired by Olympic Casino Latvia. Now the gambling venue at Grand Hotel Kempinski Riga will operate under the Olympic Casino brand.
The company that became the owner of the casino explained the decision to purchase a new venue as a desire to strengthen its position on the local gambling market.
Now the new owners will have to reequip casino premises to comply with the established epidemiological rules.
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