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A Balanced Take on Optimal RTP for New Turnover Taxation in Germany


What should be the optimal return to player (RTP)? This is a hotly debated question in the German gambling industry following the changes in the turnover taxation that are scheduled to come into force from 1 July 2021.
While several figures and many theories have been advanced, we found particular LinkedIn post by Robert Lenzhofer, Co-Founder and CEO of Hölle Games, particularly well-balanced and insightful.
We are reproducing the post with minor changes here, with permission from the author. You can find the original post here.
Over to Mr. Lenzhofer now…
I have published a LinkedIn poll recently with the title: “If/when Germany introduces the 5.3% turnover tax, what RTP rate is best suited considering both game-play and effective tax-paid?”
After one week and 120 votes from industry experts, the poll showed the following result:
There are a few ways of looking at this, but I think the key take-away is that the industry this poll represents is fairly evenly split between above 90% RTP and below 90% RTP.
The tax explained
First, to ensure we are on the same page, a quick explanation of the tax proposed:
Currently a 5.3% tax on turnover has been proposed and a draft-legislation does exist. I won’t go into the politics and the thinking behind this, but rather try to analyze the numbers.
A 5.3% tax on every bet being placed on an online slot means an operator can not offer an RTP over 94.7%. At 94.7% RTP, the operator would break even exactly on a bet-level, but obviously would lose money as marketing, employees and general operation have to be financed somehow. Considering financial overhead in any operation, that means the maximum RTP a casino is technically able to offer while avoiding bankruptcy is probably around 93% or more likely at 92%. This is the top ceiling and at the same time too high to be profitable.
Now, there is a bit of uncertainty and I’m also not entirely sure if the number to calculate against is 5.3% or rather 5.033%. The tax is 5.3% on turnover, meaning a 1 EUR bet causes a tax of 5.3 cents, which totals to 1.053 EUR. The tax-portion of 1.053 EUR is less than 5.3%. 100*5.3/(100+5.3) = 5.033 resp. 5.033%. I do calculations here in this document based on 5.3%.
How to balance RTP and profitability
We’ve established above that 93% or 92% is the top ceiling, but where is the bottom?
The table below shows how a Slots-operator will be taxed, calculated into the GGR-equivalent %-age number and cross-referenced with RTP. For reference, many other jurisdictions in Europe offer a GGR-based tax-rate of around 20%. As you can see from the table below, the 5.3% tax-rate on turnover wouldn’t be so bad, if players would accept 80% RTP. At 80% RTP, the GGR-equivalent tax-rate is 26.50% and thus a competitive tax-rate.
The coloring I have done here may be slightly biased, especially in terms of RTP so please take with a grain of salt. But if you roughly accept that the red-area you want to avoid on the RTP and on the GGR-% side, then you end up with an RTP-bandwidth between 84% and 91% to play with.
Further, and again granted you accept the coloring, an operator obviously wants to find an RTP in the green and a GGR-% in the green. Here we arrive at 88% and 89% RTP.
Now, a lot has been written that players will not accept such low RTP’s as say 84%. There are counter-arguments made that in land-based slots the RTP is exactly at that level and actually 88% is on the higher-end in land-based casinos.
On the other hand, for many market-participants the number “9” is a psychological blocker. Players, Affiliates and a couple of Slots-Studios I speak to feel very anxious offering product below 90% as this number still feels somewhat close to the industry-average of 94 to 97%. 89% sounds very different than 90%, although it is “just” 1% in RTP dropped.
Sportsbook vs. Casinos
It will be interesting to watch if Sportsbook or Sports-led brands will choose a differing RTP-rate than Pure-Play Casinos. A Sportsbook can more easily stay on a higher RTP and just pause all short-term expenses (bonus, marketing, etc.) and focus on cross-sell. A pure-play Casino will have to look a lot more closely on bottom-line and in my opinion will have a hard time offering e.g. 90% RTP-Slots as the GGR-equivalent tax-rate is 53%.
Game-Mechanics?
Will there be new Game-Mechanics invented to combat this problem? Looking at the table above again, the second column states how many spins a player on average can make until 1 EUR is spent depending on the RTP-Level. At 95% RTP this is 20 spins. Now, if a Game-Mechanic can be invented that provides a low mathematical RTP while at the same time provides a similar amount of real spins, then this could be a solution to the problem.
Conclusion
The above explanation is in no way complete – there are actually interesting studies which analyze how much an RTP is “felt” by the player and there is probably very good data the land-based industry has to offer.
But, to move away from being neutral, here’s what I personally think: The reality will be that everyone will push the RTP down and experiment with the lowest acceptable RTP as this maximizes their income. As such, come 1st of July, we’ll see a lot of RTP’s experimented with. Imagine you are a pure-play casino and you can provide a Game-Mechanic that feels good to the player and has a nice session length, while staying at or below 40% GGR-equivalent-tax. I believe things start to fall apart financially for an operator at 40% tax-rate. If you own your own media-assets and have good deals with your suppliers and run a tight operation then a 40% tax is possible to do really well in Germany. That means, the average-RTP across the portfolio will have to be around 87-88%. I think you can mix in 91% games into the portfolio just so that is part of the portfolio too, but the majority of revenue of the white-market in Germany will in my opinion come from Slots around 88% RTP. And since some games will be mixed in at 90/91% you can expected some slots to be mixed in at 84/85% rate as well.

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The anatomy of a high-performing iGaming platform: a guide from Slotegrator
Slotegrator, a gambling solutions provider and game aggregator, has released new downloadable material about the key components of a successful online casino platform. The guide includes practical checklists to help beginners set up platforms from scratch and experts enhance their projects.
In the iGaming industry, a project’s long-term success depends on the power and versatility of its platform. But that platform can’t be based on any old software; just like how you can’t have a car without four wheels and an engine, there are vital components to an online casino platform.
So what are they?
Let’s start with first impressions. The frontend is the “face” of a platform. Almost 75% of players judge a gambling website based on its appearance, and 88% of users won’t return after a negative experience.
Key frontend elements include:
- Branding (visitors should understand the idea from the first glance)
- Navigation (everything should be simple and easy to find)
- Transparency (players must have easy access to relevant information)
- Localization (adoption of language, currency and cultural norms).
If the frontend is the face, the backend is the brain. It should contain all the tools for successful online casino management. A quality backend should give the operator total, real-time monitoring and control over every aspect of a business — payment processing, regulatory compliance, game statistics, player data, retention strategies, analytics, compliance, player support, and everything else.
New operators often find themselves trying to choose whether to build such a platform in-house or to outsource the job. Slotegrator’s report carefully weighs the pros and cons of each option and reaches a clear conclusion: in-house development might save a little money in the short term, but it’ll cost much more in the long run.
“We created this guide to help operators to understand what truly belongs in a successful iGaming platform. An engaging frontend and a powerful backend are essential tools for attracting and retaining players. The guide is a valuable resource for evaluating a platform’s strengths and weaknesses and building a clear promotion strategy”, says Svetlana Kirichenko, Head of Marketing at Slotegrator.
Slotegrator’s guide also includes several key checklists:
- Essential frontend functions
- Key backend features
- Necessary modules for platform architecture (featuring a real example of Slotegrator’s turnkey online casino platform.
Download the guide via the link.
ABOUT THE COMPANY
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
The post The anatomy of a high-performing iGaming platform: a guide from Slotegrator appeared first on European Gaming Industry News.
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PAGCOR ORDERS TAKEDOWN OF GAMBLING BILLBOARDS
In a memorandum issued on July 7, PAGCOR directed all licensees, suppliers, system administrators, and gaming venue operators to take down gambling ad materials, including those displayed on trains, buses, jeepneys, and taxis.
The agency emphasized that only institutional or responsible gaming campaigns—subject to PAGCOR’s approval—will be permitted moving forward.
“We have given all our licensees and stakeholders until August 15 to completely remove all gambling-related ads,” said PAGCOR Chairman and CEO Alejandro H. Tengco.
“Prior to that, stakeholders must also submit an inventory of their existing billboard and wallscape advertisements by July 16.”
The inventory, according to Mr. Tengco, must include the size, material, location, rental contract expiration, and the corresponding permit number from the Ad Standards Council (ASC).
The PAGCOR chief said the move is part of the state gaming agency’s commitment to promote a safer and more responsible gaming environment in the country.
“While PAGCOR is mandated to regulate the gaming industry and generate revenues for nation-building, we do not want to encourage a culture of gambling addiction,” he said.
“Regulating excessive and pervasive gambling advertisements is a critical step in protecting vulnerable sectors of society, especially the youth.”
The agency also warned against replacing the dismantled advertisements with new gambling promotions, stressing that non-compliance will be dealt with accordingly.
The post PAGCOR ORDERS TAKEDOWN OF GAMBLING BILLBOARDS appeared first on European Gaming Industry News.
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Week 28/2025 slot games releases
Here are this weeks latest slots releases compiled by European Gaming
Spinomenal has released its latest title, Queen of Oasis. Set against the rolling ancient Egyptian dunes and lush, palm-lined oases, Queen of Oasis immerses players in an elegant world of riches. Camels, vultures, antelopes, snakes, and the powerful Queen herself bring this 5-reel slot to life. The reels sit within two ornate marble pillars where the bejewelled Queen represents the Wild symbol.
TaDa Gaming has released Golden Bank 2, a sequel to the popular Golden Bank slot. With a 10,000x max win and exciting features, Golden Bank 2 engage players with its immersive gameplay and the potential for substantial payouts. Set in a golden vault, Golden Bank 2 combines the simplicity of classic slots with the thrill of modern mechanics. With vibrant graphics and a dynamic soundtrack, the game immerses players in an exciting, high-stakes atmosphere.
Evoplay has launched Belfry Bliss Hold and Win, a fiery 5×3 slot that blends retro-inspired visuals with a darker twist on the fan-favourite Hold and Win mechanic. Set against a backdrop of flames and ringing bells, the game reintroduces Evoplay’s mischievous Devil character, not as a foe, but as a Wild symbol, lighting the way to potential wins. Classic slot icons like sevens, bars and cherries return, but the real action begins when the bells drop.
Brute Force: Alien Onslaught reunites the original Brute Force members… with a surprise addition. Joshua and Jason have recruited the help of Jade, a fearless mercenary, who doesn’t know defeat. This game joins the ranks of signature Nolimit City slots like Fire In The Hole 3, Highway To Hell and most recently Flight Mode. It’s time to lock and load, once again! Unlike the prequel, Brute Force: Alien Onslaught features a 6 reel setup, wilds and a new baddie, Xylox, who can steal multipliers from Joshua, Jason and Jade.
Push Gaming has returned to the deep blue with Fish ‘n’ Nudge Big Catch, a reimagined follow-up to one of its most beloved recent titles. Building on the charm and success of the originalFish ‘n’ Nudge, Big Catch brings fresh energy to the series with a new take on free spins and added layers of excitement designed to engage both loyal fans and new players.
Play’n GO unveils Rise of Orpheus, a mythical slot that takes players deep into the Underworld in pursuit of love, light, and powerful gameplay features. Following in the footsteps of mythology-inspired favourites like Gates of Troy and Rise of Olympus, Rise of Orpheus brings the tragic tale of Orpheus and Eurydice to life through emotionally charged mechanics and immersive storytelling.
Playson welcomes the return of its mischievous trickster in Super Pink Joker: Hold and Win, who features as a Wild during base play before shapeshifting into a lavish Multiplier for the renowned Hold and Win Bonus. Set in a dazzling pink world full of energy, the release cranks up the heat with dynamic animations and upbeat audio, with the jester taking his place on the enlarged 5×3 grid alongside electrified coins and cartoon-style fruits.
Blueprint Gaming™ reignites the prehistoric fun in its latest major branded IP release, The Flintstones™ Bedrock Riches, led by two lavish bonus games and an intriguing base play trail. The series’ original, The Flintstones™, enjoyed a strong initial uptake in users following its launch in May 2024, with players gravitating towards the familiarity of the brand and series. The renowned slot studio now feels confident the latest offering has built on key features and aims to retain players long term.
ELA Games, a dynamic game development studio, announces the release of John’s Book, its modern take on timeless themes and mechanics. The game invites players to join John the Explorer to hunt for ancient treasures buried in a Pharaoh’s tomb. Rich with iconic symbols and familiar mechanics, John’s Book is a tribute to the well-loved “Book Of…” format that’s prevalent in the industry while adding its twists. With high replayability, easy-to-understand features, and an immersive design, this title appeals to both veteran and casual players.
Players get to dig deeper with every spin as they search for gems and big wins in Wild Gold Mine, the latest slot release for iGaming content provider, ICONIC21. Wild Gold Mine promises a glistening player experience thanks to a cart-load of features, including a unique bonus that makes an appearance for the very first time in an ICONIC21 slot.
“Hellish 7 Hold & Win”, (Höllische 7 Hold & Win in German) is now live, a spicy Classic Series slot from the Berlin-based developer Hölle Games. This is a new summer edition in the Hellish Seven franchise, known for its high volatility, hellishly good payouts, and hard rock riffs. The new entry features Hold & Win, where, if players can fill the reels with (any) cash symbol, they will win the impressive 7777x main prize!
Tom Horn Gaming is kicking off July with Panda Rica, a fast-paced 3×3 video slot that delivers simple yet captivating mechanics and vibrant visuals. From expanding wilds and multiplier wins to Star Gamble Ladder, the game is a standout addition to the supplier’s growing portfolio of slot titles. Designed for quick sessions and high engagement, Panda Rica combines classic slot appeal with clever gameplay that elevates the player experience.
Prepare for an unforgettable summer as Endorphina announces the highly anticipated release of Sticky Lips, its latest captivating slot. This visually striking title invites players into a vibrant world where Endorphina’s Joker makes a remarkable return, blowing irresistible kisses to make their winnings truly stick. She’s wild, she’s wicked – and her lips are ready to stick you with luck! Dare to stare into her eyes in this 5-reel 4-row slot with 50 fixed paylines and prove your worth to get a lucky, juicy kiss. With every spin, her lips glow and tempt, hungry to lock in golden wins.
The post Week 28/2025 slot games releases appeared first on European Gaming Industry News.
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