Mansion Group Will No Longer Accept New Customers in Germany
The Gibraltar-based Mansion Group recently announced it has closed its virtual casino doors to new customers in Germany as of February 1, 2015.
The Playtech-powered online gaming operator notified its affiliates that new players would be blocked from accessing its real money games on its Casino.com, MansionCasino.com, LesAcasino.com, Club777.com and Slotsheaven.com brands. New players will still be able to enjoy play-money games at any of these sites.
While residents in Germany will no longer be able to create accounts at any of the Mansion Group brands, according to the statement, German speaking punters in other countries will still be able to create new accounts. "This close only affects players based in Germany; German-speaking players from other countries are not affected by these restrictions."
It is believed that this decision will only affect new players, as existing players in Germany can continue to enjoy games on any of the online casinos operated by the Mansion Group. This is probably due to it still being profitable to service these customers, even though it may not be profitable to spend time and money recruiting new players in light of a VAT ruling taxing online gaming operators for electronic gaming activities in many European countries, including Germany.
Many German-facing gaming operators based outside of Germany went from paying no VAT taxes in previous years to being subject to a 19 percent VAT tax rate on its customers as of January 1, 2015.
An unnamed gaming lawyer expanded on this in a statement to eGamingReview. "As the VAT system has changed fundamentally with regard to the cross-border provision of services within the EU as of 1 January 2015, operators now have to pay German VAT on gaming services, if the customer is situated in Germany," the lawyer said.
It is also believed that while the Mansion Group decided to close its doors to new customers in Germany, Playtech has no such plans to force this upon all online gaming operators powered by its software, leaving the decision to each company.