German gaming association urges operators to monitor local entertainment tax proposals

The Bundesverband Automatenunternehmen (BA), a German amusement-machine operators' association, has advised its members to pay close attention to entertainment tax (Vergnügungssteuer). It cited municipal budget deliberations that are currently under way in many places.

According to the BA, a further increase in entertainment tax could seriously endanger the economic viability of individual locations for commercial gaming, which it said is already burdened by numerous regulations. The association said municipalities themselves would also lose out, through lost tax revenue and jobs and through a shift to illegal offers.

The BA recommended that operators follow budget deliberations in the municipalities where they have sites, along with council information systems, finance and main committee agendas, and the local press. It also said it is important to maintain political contacts. The association described supplying facts about the company as equally essential. It suggested operators highlight what their local business contributes, naming jobs, training, trade tax and entertainment tax, and player and youth protection.

The BA further recommended reacting early, so that operators can approach decision-makers before council meetings take place. It also advised appearing together with other local businesses to carry more weight. Operators should additionally inform their state or trade association so it can provide support, the BA said.

The BA also pointed to its BAKit Leitfaden Vergnügungssteuer, a guide to support discussions with politicians and administrators. The guide collects the main arguments, background and practical advice for talks held in advance or in an acute case. Members of the BA's state and trade associations can download it free of charge from the protected members' area of the BA website. The BA had already provided information on the subject earlier this year through a BAkademie session.