Assessment basis for gaming machine tax to be changed
21.10.2022 – Gambling machines with which players can win money can be found in Offenbach in restaurants, sports bars, amusement arcades and some other places. The sums that players pay for gambling must be taxed. The owners of the gaming machines must submit the tax declaration to the city and pay the tax.
The city of Offenbach now intends to change the assessment basis for the gaming machine tax: The "gaming stake" is to be used as the benchmark. This has already been implemented in Frankfurt am Main and several other cities.
The previous statutes stipulated the electronically counted gross cash as the basis of assessment. The electronically counted gross cash register was calculated from the electronically counted cash register plus tube or bill dispenser withdrawals minus tube or bill dispenser refills. The measure of the "gaming stake" as the sum of the amounts of money inserted into a gaming machine for gaming purposes and the winnings used for further games corresponds most closely to the requirement of equal taxation. There is currently no more practicable measure that establishes an even closer link to individual entertainment expenditure. The gaming stake benchmark ensures that the taxation of players' entertainment expenditure is as realistic as possible. The use of the "gaming stake" as a basis also represents a simplified procedure for both the machine operators and the administration in comparison to the "gross box office".
The aim is to be able to better regulate the number of gaming machines and prevent manipulation. Taxation based on the stake provides a legally secure basis for this. The switch to the "gaming stake" taxation scale also makes it easier for taxpayers to prepare their tax returns. Other amounts no longer have to be taken into account.
City Treasurer Martin Wilhelm clarifies that this change is not intended to increase tax revenue, but to have a revenue-neutral effect. For this reason, a tax rate was chosen at which a similar tax revenue can be expected. It is important to Wilhelm that the gaming machine tax continues to have a steering function with regard to combating and curbing gambling addiction.
For all gaming machines in amusement arcades, restaurants and other locations, the new statutes will stipulate a tax rate of 7.5 percent of the stake. For gaming machines that do not pay out winnings, the tax rate is to be just 6.5 percent. Fixed amounts are to be levied for gaming devices that do not have a cash-safe selection procedure.
Martin Wilhelm admits that, as with all changes, there may well be shifts in individual cases. However, comparative figures collected for Offenbach over a longer period of time have shown that these tax rates are likely to be revenue-neutral.
In 2019, the tax revenue from this type of tax in Offenbach amounted to 4.5 million euros. The coronavirus pandemic meant that only 3.5 million euros were collected in 2020 and only 1.8 million euros in 2021 due to the closure of amusement arcades and restaurants. The figures have since normalized. By the end of the year, 4.7 million euros are expected. This amount is also the target for subsequent years following the amendment to the articles of association.
The amendment is to come into force on January 1, 2023.