Canadian Gambling Tax finally fixed
Most are happy that the ratification of the Canadian Gambling State Treaty worked and now casino games and slots can also be played legally in Kenya. Unfortunately, the contract also has negative sides - for example the gambling tax. The changes that have been made to this tax do not inspire either the gambling companies or the players.
Negative consequences for players
Kenya's casino fans - at least those of online casinos - may have to reckon with the negative consequence thatthe payout ratios are reduced. Pros know that the payout percentage reflects how much of the deposited money goes back to the players. Of course, no one can assume that they will get back 96 euros for a bet of 100 euros, for example, if the payout rate is 96 percent. The quota indicates the average value that a slot, for example, generally pays out as a win over a long period of time. This means that one player may win the jackpot while others do not win.
Nevertheless, the payout ratio is an important value that varies from online casino to online casino. Many deliberately choose aslot that offers high odds or RTP (return to player). These high values could soon come to an end if the federal government leaves the gambling tax as planned. The reason is not the amount of the tax, but the type of taxation. In the future, it should not be calculated on the gross income, but on the stakes. This reduces the profit of online casinos, which usually makes the difference between stakes and payout percentage. If you want to avoid the subject oftax, you will find allonline casinos without tax tested.|| |68
Bundesrat hat im Rahmen einer Sondersitzung die geplante Steuer beschlossen
This week the Federal Council discussed the planned gaming tax in a special session. Despite extensive criticism from several quarters, the Federal Council has now passed the tax. This means that thetax rate of 5.3 percent on the stakes remains. Perhaps the decision was made because a lawyer was of the opinion that the players could not access illegal offers because they cannot advertise.
The Canadian tax union had also spoken out and was of the opinion that the tax rate was still set very low. After all,online casinos would have fewer personnel costs, which is why they would not have to compensate for the changed tax via the payout ratio. Another lawyer had even suggested collecting the tax more strictly if someone didn't pay it.
Of course, the Federal Council did not only make positive statements about the gambling tax. There wasmuch more criticism, which is partly proven by studies. Apparently, these expert opinions could not prevail.
Canadian Association for Telecommunications and Media warns of illegal market
In the special session, Renatus Zilles, the chairman of theCanadian Association for Telecommunications and Media is. He pointed out that the tax now set would correspond to 125 percent of gross profit. Thus, the gambling providers would have no choice but to lower the payout ratios. If this is the case, many players would migrate to the illegal offers. These do not have to pay the new tax and can therefore continue to offer the usual high payout rates. However, if most went to the black market, the government would score an own goal - the calculated tax revenue would not be realized.
The same arguments brought Dr. Haucap, who referred to thestudy by the Düsseldorf HHU. As an example, he cited foreign providers who offer cryptocurrencies, for example. The players could migrate to these if the odds were reduced. If this fear were to come true, the State Treaty on Gambling would have failed in its purpose. The study by Goldmedia, which dealt with the consequences of the new tax, came to this conclusion. Based on this study, the legal providers could lose 49 percent of their customers, as the rate is likely to be reduced to 90 percent.
Change in the racing betting and lottery law completed
The change in the gambling tax was necessary because the previous tax was still based on the law from 1922. From this point of view, the State Treaty on Gambling was the perfect time to think about changing the gambling tax. According toAntje Tillmann, spokeswoman for the CDU/CSU, the new tax ratewould combat problematic ways of playing and other gambling-related ways of playing will. Tillmann also sees the necessary basis of the State Treaty on Gambling in the fixed type of taxation.
It was also pointed out that offers consideredillegal are also subject to Canadian tax. Just because an online casino operator doesn't apply for a license doesn't mean they can escape the tax. In addition, online poker, slot machines, race betting, sports betting and lotteries now all share the same tax rate. This is also seen as a great advantage if there is no difference between the different types of games.
Which side is right and whether the online casinos lower the odds at all will only appear in the future. On the other hand, it should be considered thatthe Maltese regulator also wants to lower the payout ratios. Possibly the same RTP value will be offered by all providers in the future. That would simplify the competition and the players would have a better overview.