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

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A Balanced Take on Optimal RTP for New Turnover Taxation in Germany
A Balanced Take on Optimal RTP for New Turnover Taxation in GermanyReading Time: 4 minutes

 

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:

Picture of poll outcome. 90-92% RTP gets 52% votes. 87-89 gets 33%. 84-86 gets 8%. 81-83 gets 8%. Total 120 vots. Poll is closed

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.

Table describing various tax rates with respect to betting amount

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.

 

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Casino Kings Knocks Out Partnership with Boxing Powerhouse BoxNation

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Two titans of entertainment are joining forces! UK-licensed casino and sportsbook, Casino Kings, and the legendary boxing platform, BoxNation, have announced a dynamic new partnership, set to deliver a knockout blow of exclusive content, promotions and responsible betting experiences for fans. Becoming their official boxing betting partner, Casino Kings is stepping into the ring with one of the most respected names in the fight game, promising fans a ringside seat to even better betting.

This isn’t just a bell ringing for another sponsorship deal; it’s a knockout partnership designed to bring you closer to the action than ever before. Casino Kings branding will be engrained into the boxing industry, prominent across BoxNation’s popular YouTube channel through branding and content, where the biggest names and personalities in boxing step into the spotlight for exclusive interviews.

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Given BoxNation’s powerful presence in the boxing arena and Casino Kings’ reputation as a premier UK online casino and sports betting platform, this partnership is bound to be a knockout you won’t want to miss.

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The post Casino Kings Knocks Out Partnership with Boxing Powerhouse BoxNation appeared first on European Gaming Industry News.

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Week 17/2025 slot games releases

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Here are this weeks latest slots releases compiled by European Gaming

PG Soft has let its creative juices flow with its brand new title, Doomsday Rampage. As doomsday descends to plunge the world into chaos, players must navigate their way through a ruined city in search of three missing power clamps that hold the key to humanity’s last hope. Doomsday Rampage is a 5-reel, 1-row video slot featuring a three-level multiplier wheel with multipliers up to x100.

 

Spinomenal has released its tropical-themed game Majestic Lemur as part of its Wildlife series. The 5×3 reel frame is set against a picturesque beach backdrop, with clear blue waters, palm trees, wooden huts, and distant misty mountains. A light-hearted tropical soundtrack gives the game an exotic feel as players hunt for payouts.

 

Relax Gaming is pulling off the ultimate heist for cash in its heart-racing new release Cash in Transit. This highly volatile 5×4 slot sees players join a cunning gang of thieves in the City of London, attempting to commit the ultimate crime and get away with prizes worth up to 10,000x. The action begins when three or more Bonus Symbols land, unlocking the game’s Bonus Reels.

 

Evoplay has launched Lava Burst, a high-volatility slot packed with exciting features to boost player engagement. Played on a 4×3 grid, the game’s core mechanics are the Bonus Game and Ultra Bonus Game. Both begin with three spins, and each new symbol that lands reset the counter. The round continues until all 12 positions are filled or no spins remain.

 

Galaxsys is pleased to introduce Funny Faces: Hoglet Moglet, a cheerful and dynamic slot game designed to bring smiles and entertaining gameplay to players. Packed with playful animations, quirky characters, and unique bonuses, this new title adds a fresh and fun spin to the company’s ever-growing slot portfolio.

 

BGaming is serving up a delectable treat with the launch of the brand new Sugar Mix slot. Matching the ever-present demand for creative sweet-themed slot action, Sugar Mix invites players into a charming pastry shop where the shopkeeper guides them on a quest for big wins and exciting bonus action. Sugar Mix immerses players in a colorful world of sugary delight, while an exciting Free Spins bonus round, complete with the dynamic Swap feature, keeps players on the edge of their seats for every spin.

 

Yugo Workshop is back with another thrilling slot release! Wild Island marks the studio’s third launch this year under the Million Stars Partner Program, following the successful debuts of Thorfinn’s Journey and Vault Rush. This latest title delivers a paradise setting with a fiery twist, packed with high-energy gameplay, immersive visuals, and fiery features.  As players spin the reels of this high-volatility 5×3 video slot with 20 paylines, they’ll uncover the island’s hidden dangers and lucrative rewards, all leading to an explosive finale when the volcano awakens.

 

Inspired Entertainment, Inc., is delighted to announce the launches of Piggy Winner and Gold Mine Fortune in the United Kingdom, Gibraltar and Malta iGaming jurisdictions. Piggy Winner™ is a fun, pig-themed slot game that builds on the success of Inspired’s ever popular Golden Winner™, combining the playful visuals of two popular slots, Big Piggy Bank™ and Prize Piggy Win & Spin™, into a vibrant slot experience. Gold Mine Fortune™ is a gold miner-themed slot game inviting players on a high-stakes mining adventure with its ‘three bags’ mechanic, represented above the reels by the red Wild, golden Prize Pot, and blue Multiplier minecarts.

 

Play’n GO reintroduce their iconic explorer in Rich Wilde and the Tome of Dead, a grid slot where forbidden knowledge, ancient deities, and raw chaos collide. Rich Wilde returns to face his most perilous discovery yet. Uncovering a cursed tome deep within the sands of myth, Wilde inadvertently releases Ammit – the Devourer of the Dead. This 5×5 cascading grid slot challenges players to manipulate arcane power to seal the beast away.

 

Stakelogic is proud to unveil its latest game release, Wild Canyon. This high-volatility adventure takes players to the rugged landscape of the Wild West, where an outlaw Chameleon rules the reels with attitude and generous payouts. In this 40-payline slot, players encounter a colour-shifting Chameleon outlaw who struts above the reels, blending in with the desert dusk.

 

Red Rake Gaming introduces Sugar Burst, a thrilling 6×6 video slot that turns every spin into a true celebration of flavours, colours, and rewards. This new release takes players to a world filled with candy, cakes, and waffles, where every spin can trigger a delicious avalanche of wins. With its Xtreme Cascading system, all matching symbols disappear after a winning combination, creating new cascades and even more chances to win.

 

Players can charge into action and lock in mighty wins in Blazin’ Buffalo Extreme Hold & Win, the latest slot from in-demand studio, Rival. This game is all about explosive action, with players caught up in a stampede across an arid frontier where they join the magnificent beasts to chase down blazin’ wins. They are helped along the way by different Wilds, a Hold & Win feature, Jackpots and the chance to win up to 20,000x the bet.

 

Get ready to experience a carnival colour in Supa Crew – the dazzling new addition to the Elysium Studios – Driven by Swintt line-up that sees players team up with a dynamic group of graffiti artists to grab their spray cans and paint the town any shade they please! Set in a fantasy kingdom filled with mushrooms, cats and other cute creatures, Supa Crew is a five-reel, 10-payline slot where wins are paid for adjacent matching symbols regardless of the reels they appear on.

 

Blueprint Gaming™ is ready to treat players to another thrilling underwater adventure via its latest release, Fishin’ Frenzy Even Bigger Fish 2™, where new and improved collect modifiers, free spins and the Rapid Fire Jackpots™ system boost chances of fishtastic returns. The 6×4, 4,096 way-to-win slot sees the collect modifiers more than double from the series’ predecessor, with Bait ‘N’ Catch, Win Stepper, Catch Match and Super Catch offering an array of features including increased cash symbols, wilds, multipliers and free spins.

 

Playson takes to the heavens in its latest release King of the Sky: Hit the Bonus™, where an exciting series-first sees the title’s Eagle’s Bonus awarding wins via both paylines and bonus symbols. A cloudy backdrop immerses players in the thick of the action with a majestic eagle guiding gameplay. The Golden Bonus Game is elevated via random Multipliers and Boost symbols which collects the value of all other icons on the grid, whilst four in-game jackpots increase the chance of soaring wins reaching 1,000x.

 

Inspired Entertainment, Inc. is excited to announce the release of Gate of Horus™, now available to the UK LBO, B3 market. From the creators of the popular Rise of Samurai slot™, Inspired’s Bell-Fruit Games studio presents Gate of Horus a captivating new Egyptian-themed slot. Packed with engaging features, players can enjoy an expanding symbol that unlocks additional win lines, Free Spins, a dynamic dual-wheel gamble, and Fortune Spins for even greater opportunities to win.

 

The post Week 17/2025 slot games releases appeared first on European Gaming Industry News.

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LuckyStreak unveils optimised Mobile Live European Roulette

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New ultra-slick interface brings mobile-first, immersive play with seamless multi-camera views, stat tracking, multi-tabling and social features

LuckyStreak, the Riga-based live games provider, has launched its new Mobile Live European Roulette game, delivering a stunning player experience with sleek mobile-first interface, smooth gameplay and a host of powerful new features.

Following the recent upgrades to its Blackjack and Baccarat offerings, the relaunch of this mobile-friendly format cements LuckyStreak’s position at the forefront of live casino innovation. The new Mobile Live European Roulette has been specifically designed for mobile gaming – playable in both portrait and landscape orientations with a bold interface.

New features include a streamlined UI and thumb-friendly controls for quick chip selection, bet placement and game interaction. Players can toggle easily between classic and racecourse betting layouts, track hot and cold numbers, review winning stats and save their favourite bets for speedy reuse.

A refined automatic camera system ensures players never miss a moment of action, smoothly transitioning between views to give a clear view of the entire game. Players can also customise their table presence with a fun selection of avatars and dive into the social element with in-game chat, emojis and a fully-integrated jackpot tournaments tool.

LuckyStreak’s new Mobile Live European Roulette game is now in-play and available to all operators and players. This launch demonstrates LuckyStreak’s ability to keep pace with some of the industry’s most popular live dealer suppliers and adapt to ever-evolving technological advancements.

Erez Cywier, CTO and co-founder at LuckyStreak, said: “This version of our Mobile Live European Roulette reflects everything we’ve learned from past relaunches and customer feedback. The new interface is sleek, intuitive, and designed for seamless play—without compromising the features our players love.

“We’re not trying to shout louder than the competition — we are proving that we belong in the top tier. With Mobile Live Roulette, we’ve once again delivered a product that not only matches, but in many ways surpasses, the best in the market in terms of usability.”

The post LuckyStreak unveils optimised Mobile Live European Roulette appeared first on European Gaming Industry News.

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