The Federal Administrative Court Confirms the Inadmissibility of the Betting Shop Tax
BERLIN, Germany (September 20, 2022) — With its decisions on September 20, 2022, the Federal Administrative Court (BVerWG) declared the levying of a municipal betting shop tax to be inadmissible. The long-standing legal dispute over the local expenditure tax levied by the city of Dortmund since 2014 has thus been decided in favor of the betting shop operator.
The President of the German Sports Betting Association (DSWV) Mathias Dahms welcomes today’s verdict:
Many betting agencies have been wrongly taxed twice for many years, although we have pointed out the illegality of the additional municipal betting office tax from the start. Now the years-long struggle through the authorities has finally been won.
After the lower courts, the Gelsenkirchen Administrative Court and the Münster Higher Administrative Court, had each dismissed the lawsuits brought by the three operators of betting agencies in Dortmund, the BVerWG came to the conclusion in the highest instance that “the levying of an (additional) municipal betting office tax is not permissible is because it is similar to the taxes regulated under federal law in the racing betting and lottery law (racing betting and sports betting tax).”
This was also stated in 2019 by Professor Gregor Kirchhof, Director of the Institute for Business and Tax Law at the University of Augsburg, in his report commissioned by the DSWV. Accordingly, the betting office tax violates the constitutional ban on similarity based on the assessment basis of gross betting stakes.
SOURCE: German Sports Betting Association.German Sports Betting Association (DSWV), Federal Administrative Court, municipal betting shop tax, Mathias Dahms