But for which social projects should the income from gambling be used? It has been a legal obligation for many years that a certain proportion of the tax revenue from the gaming sector in this country must flow into good causes. Not only charitable and public institutions are financed in this way, but also many associations. The CDU parliamentary group in North Rhine-Westphalia has now dealt with this issue again after several years. This is because no adjustments have been made to the amount of financial contributions since 2014.
13 million euros more per year for a good cause
Regulated gambling is a lucrative source of income for the state, both online and offline. For many years, the income that the state draws from gambling has continued to rise. And from next year there will be a new State Treaty on Gambling, which could let tax revenues soar further. The CDU parliamentary group in North Rhine-Westphalia is therefore already planning to significantly increase financial contributions for social purposes. So far, NRW has used an amount of 87 million euros per year to support public and non-profit institutions and associations. The money comes entirely from state gambling revenues. From 2021, according to the CDU parliamentary group in North Rhine-Westphalia, they want to spend 13 million euros more annually, i.e. a total of 100 million euros per year, for a good cause. This increases the annual budget in this area by almost 15%. Of course, not only North Rhine-Westphalia but also the other federal states promote social causes with the income from gambling.
In 2019 alone, people in North Rhine-Westphalia spent around 1.59 billion euros on gambling products in the lottery range.
Sports associations, art foundations and welfare organizations benefit
According to CDU parliamentary group chairman Bodo Löttgen and Christof Rasche (FDP), “sports associations, the state’s art foundation, nature conservation, foundations for homeland and cultural care and welfare” benefit from the state payments in the millions.
So far, however, the situation has been such that the income from the gaming sector resulted mainly from state gaming institutions such as LOTTO 6 from 49 or oddset bets. When the new State Treaty on Gambling comes into force in the coming year, considerable additional tax revenue will likely come from the numerous virtual gaming providers. If necessary, there could be another adjustment of the financial support for the good cause in the coming year.
This is how LOTTO income is distributed:
Half of the income is paid out to the players in LOTTO in the form of profit distributions. Another 12% goes to the stationary acceptance point or to the sales partner. In addition, 17% is currently paid as lottery tax. According to the currently valid State Gambling Treaty, 23% are also required, which should be invested in non-profit organizations in the fields of sport, social affairs, culture and environmental protection. Just a few weeks ago it was also announced that the LOTTO would now have to pay 1.20 euros per betting field instead of 1.00 euros previously.
Unlicensed online gambling providers do not participate in funding
The fact is that a large part of the gaming revenue in Germany comes from the state lottery LOTTO 6 von 49. Anyone who plays in an online casino without a German license does not support the funding programs for a good cause, as these providers do not pay taxes in Germany in the vast majority of cases. That is why responsible gamblers are well advised to opt for a reputable online game library with a German license in which they can play safely in the future. To the best of our knowledge, these online providers will also generate higher government gaming revenues, which in turn can then be invested in charity.
The gaming industry in Germany ensures that several million euros can be used for social purposes. The state’s gaming income mainly resulted from the lottery LOTTO 6 from 49 and the oddset bets. However, this should change at the latest when the new State Treaty on Gaming comes into force, since from this point in time the online gaming libraries licensed in Germany will also have to pay taxes. In the future, responsible players should, if possible, play on online platforms that have a license from Germany.