Lone German State Provides Online Casino Haven

The liberal approach to internet gambling taken by renegade German state Schleswig Holstein appears to have been vindicated this week, with at least one prominent lottery company announcing its decision to relocate there.

Lotto Relocates

Faber Lotto, whose CEO is German Lottery Association Chairman Norman Faber, said it would establish an independent company in Germany's northern-most state that will operate nationally. "I have made my decision. The process has begun. I have no other choice," Faber said ahead of a meeting with Schleswig-Holstein parliamentarians.

It is still unclear what will happen to Faber Lotto's corporate headquarters in Bochum in North Rhine-Westphalia state. The company employs 370 staff there, and according to German news reports would need 34 licenses to remain active in all German states.

Other States Criticized

Fifteen of Germany's 16 federal states agreed at the end of October to reduce a proposed online gambling turnover tax from 16.6 percent to 5%, but the new regulations they agreed on ban all online casino and poker games.

The states were heavily criticized by online gaming companies and interest groups, who believe they should follow the lead of Schleswig Holstein - which decided months ago on its own operator-friendly gambling legislation, including a tax on gross profits instead of turnover.