Italy scores high on gambling tax, leaving Germany behind
•
27 Dec 2024 •
Reading time: 2 minutes A striking difference in gambling tax revenues between Italy and Germany raises questions about the efficiency of regulation and lost potential. Despite a smaller population and GDP, Italy generates four times as much gambling tax revenue as Germany, leading many to wonder where the German system falls short. Furthermore, we have seen that precisely because of this high tax, the black market in Italy flourishes and illegal casinos easily find a foothold.
Germany vs Italy
According to available data, Germany, with a population of around 84 million (69 million adults) and a GDP of €3.87 trillion, collects €2.5 billion in gambling tax. In stark contrast, Italy, with 59 million people (50 million adults) and a GDP of €2.13 trillion, collects a whopping €10 billion.
This significant difference has led to criticism of the German regulatory framework. Although Germany is often associated with order and efficiency, the complex compliance maze seems to be hampering revenue collection. The figures are particularly poignant given Germany’s larger adult population and significantly larger GDP. The black market for gambling in Germany has also been a source of concern before, as illegal providers easily find their way to German players here too. Operators can no longer keep up with legal operators due to strict regulations and have already sounded the alarm.
Balancing regulation and industry growth
The data suggests that Italy has managed to strike a balance between regulation, revenue generation and growth of the sector. This raises the question of whether Germany could benefit from adopting aspects of the Italian model. At least that is how politicians would see it, but the emergence of a large illegal supply has significantly increased the cost of public health than the money flowing into the treasury. We recently even saw professional footballers such as Tonali fall prey to the Italian Mafia.
The main questions now are: Should Germany look to Italy for guidance on gambling regulation? Or does Germany already feel that it is on a difficult balancing act? It does not want to end up like Italy, with a full treasury but with a series of human dramas and dishonest figures who simply enrich themselves without the treasury being able to benefit from this.