Understanding the BRST and Why It Matters
Germany currently imposes a 5.3% tax on virtual slot machine stakes — not on gross gaming revenue, but on every individual bet placed. This tax, known as the Bruttospielertragssteuer (BRST) or more precisely the Einsatzsteuer for virtual automatenspiel, has been one of the most contentious elements of the GlüStV since its implementation. Unlike revenue-based taxes used in most European jurisdictions, a stake-based tax directly reduces the effective return to player (RTP) on every spin.
In practical terms, a slot with a theoretical RTP of 96% delivers an effective RTP of approximately 90.7% to German players after the 5.3% stake tax is deducted. For comparison, the same slot played by a player in Malta or the UK delivers the full 96% RTP. This discrepancy has been a major driver of German player migration to unlicensed offshore operators, where the tax does not apply.
The Proposed Reform
A working group comprising representatives from six German states has proposed transitioning from the current stake-based tax to a gross gaming revenue (GGR) tax of 15% to 20%. The proposal, which was circulated to all 16 state governments in late March 2026, argues that a GGR-based model would align Germany with European norms, improve operator economics, and reduce the incentive for players to seek out unlicensed alternatives.
Under a 15% GGR tax, operators would pay tax on their net revenue — the difference between total stakes wagered and total prizes paid out — rather than on every individual bet. For a slot with a 96% RTP, the operator retains 4% of stakes as revenue, and pays 15% tax on that 4%. The effective tax per euro wagered drops from 5.3 cents to approximately 0.6 cents, fundamentally changing the economics of offering online slots in Germany.
What This Means for Player RTP
If the reform is adopted, German players would see a meaningful improvement in effective RTP. Operators would no longer need to absorb or pass through the 5.3% stake tax, allowing them to offer slots at their standard RTP settings. A player spinning a 96% RTP slot in Germany would receive the same theoretical return as a player anywhere else in Europe.
However, the reform is not guaranteed to pass. Several states have expressed concerns that a GGR-based tax could reduce short-term tax revenue, particularly if the GGR rate is set at the lower end of the proposed range. The current stake-based tax generates approximately €400 million annually, and states are reluctant to accept a model that might initially deliver less revenue, even if the long-term economics favor a GGR approach through market growth.
Timeline and Industry Reaction
The working group has recommended that the reformed tax structure take effect on January 1, 2027, giving operators six months to adjust their systems and game configurations. All 16 states would need to ratify the change through their respective parliaments, a process that typically takes three to six months once consensus is reached.
Industry reaction has been overwhelmingly positive. The German Sports Betting Association (DSWV) and the European Gaming and Betting Association (EGBA) have both issued statements supporting the transition to a GGR-based model. GGL-licensed operators have indicated that they would pass the full RTP improvement through to players rather than absorbing it as additional margin — a commitment that the GGL is expected to monitor through its ongoing compliance audits.
