The EGBA have filed complaint before the European Council against the German Bundesrat’s new gambling tax proposal

The European Betting and Gambling Association (EGBA) has deemed the 5.3% gambling tax proposed by the German Bundesrat (federal council) illegal, claiming it violates the EU’s business laws and state aid rules.

The sixteen federal states of Germany have until June 7 to approve the tax charge as a federal condition of Germany’s Fourth Interstate Treaty on Gambling.

According to the EGBA, who have maintained a critical stance against the tax proposal early on, the differentiated tax treatment would establish unjust advantages to land-based gambling in Germany.

A probe has been ordered by the European Council for the Bundesrat to justify the tax charge, explaining how it differs from state aid action, which is prohibited under European business frameworks.

The complaint is backed by the German online gambling trade associations DSWV (sports betting) and DOVC (online casino), according to SBC News.