Today, the TC-Gaming White Label editor will still talk about the iGaming market! However, today's focus is not on the European or Southeast Asian iGaming markets, which are currently quite popular. Instead, we will focus on the "big brother" — Germany, the country with the highest income, as well as Poland and Switzerland, which are considered "promising markets." Despite their smaller size, these countries have high revenues. Therefore, the TC-Gaming White Label editor will guide you through the iGaming policies, market prospects, regulatory environment, and taxation systems in these countries, to see which ones have high barriers to entry, which are suitable for quick expansion, and the potential policy shifts that may occur in the future. Whether you're an iGaming platform operator, an iGaming entrepreneur looking for a target market, or an iGaming investor, this article about the iGaming markets and policies in Germany, Switzerland, and Poland may give you a general understanding of these countries' iGaming markets.

German gambling market: the largest market, regulatory reform is still in the process of running in

Current Status of Gambling Policy in Germany

Germany has long been a leader in the Central European gambling market. Since the enactment of the State Treaty on Gambling (GlüNeuRStv) in 2021, Germany has undergone significant reforms in the iGaming sector, with online sports betting, slot machines, and poker games being unified and fully legalized nationwide for the first time.

However, casino table games (such as roulette and blackjack) are still managed by state lottery agencies, and whether they are open to private enterprises is determined by each state.

Outlook of the German Gambling Market

The German gambling market is large and growing steadily. In 2023, the total revenue from iGaming reached approximately 4.7 billion euros, and it is expected to grow to 6.38 billion euros by 2028.

At the same time, Germany is undergoing broader economic structural adjustments. According to German media reports, the Bundestag passed a draft of a 500 billion euro special fiscal fund on March 18, 2025, focusing on infrastructure investment. The draft also amends the "debt brake" mechanism for defense spending in the Basic Law, providing more flexible fiscal support for the economy. Several analysts have pointed out that this shift will drive growth in public investments, indirectly providing funding and policy support for industries such as gambling and technology.

In other words, as the government relaxes its fiscal policies, the digital entertainment and online economic ecosystem (including the iGaming industry) may also enjoy a more relaxed development window.

Gambling Regulatory Environment in Germany

In 2023, Germany established the German State Gambling Joint Regulatory Authority (GGL). This body became the sole authority responsible for issuing gambling licenses, regulating compliance, and enforcing bans across the country, mainly aimed at reducing previous inconsistencies in state-level policies.

GGL’s Regulation Includes:

1. Approval of online gambling license applications
2. Blocking illegal gambling websites (IP/IPV6 blocking)
3. Implementing advertisement reviews and brand regulation
4. Managing the national player restriction database (voluntary exclusion mechanisms, etc.)

Despite a more centralized regulatory system, the effectiveness still needs improvement. A study released by Leipzig University, the German Online Casino Association (DOCV), and the Sports Betting Association (DSWV) shows that approximately 75% of Germany’s online gambling revenue still flows to illegal gambling platforms.

Germany's Gambling Tax System

Germany’s gambling tax system is considered relatively high within Europe. Since the reform in 2021, online slot machines and poker games are subject to a "betting tax" of 5.3%. This means that gambling operators must pay tax on the amount wagered by players (rather than their profits). This approach has been widely criticized in the gambling industry as it "stifles the vitality of the legal gambling market," reducing the profits of legal platforms while also decreasing the players’ return on their bets.

In addition to the betting tax, gambling operators also need to pay:

1. Annual license maintenance fees
2. Data protection and technical security testing costs
3. Marketing restrictions and advertising review expenses

These costs add up, causing many local and overseas gambling operators to reconsider and instead choose to operate without a license. More critically, due to the immense pressure on licensed gambling platforms in terms of taxes and compliance, a large number of gambling players have moved to overseas, unlicensed gambling websites, leading to unhealthy competition. This has prompted the German Gambling Association (DOCV) and the Sports Betting Association (DSWV) to repeatedly call on the government to adjust the taxation benchmarks, reduce the betting tax, and switch to a taxation method based on "gross gaming revenue" (GGR) to make the compliant gambling market more attractive.

Main Gambling Tax Components in Germany:

Betting Tax

1. Applicable to: Online slots, online poker
2. Tax Rate: 5.3%, based on the amount wagered by players
3. Characteristics: Regardless of whether players win or lose, the platform must pay tax, greatly compressing the operator's profit margins.
4. Industry Response: This is the most controversial tax, criticized as the core obstacle "to the development of the legal gambling market."

Sports Betting Tax

1. Applicable to: Online or offline sports event betting
2. Tax Rate: 5% (also based on the amount wagered)
3. Historical Background: This tax was implemented long before the new regulations and was later incorporated into the new gambling law system.

corporate income tax

1. All gambling operators, as corporate entities, are still required to pay general corporate income tax.
2. Basic tax rate: Around 15%, plus a local business tax (Gewerbesteuer) of approximately 14%.
3. Effective combined tax rate: Typically between 29% and 33%, depending on the company’s registration location.

Value-Added Tax (VAT)

1. Most gambling products are exempt from VAT, but some ancillary services such as technical services, advertising, and others still need to pay the standard VAT rate of 19%.

Swiss iGaming Market: Mature Regulation but High Barriers to Entry

Swiss iGaming Policy Status

The Swiss iGaming industry saw historic regulatory reforms in 2019. With the formal implementation of the Swiss Gambling Act (Money Gaming Act), iGaming was legalized for the first time at the federal level.

However, the legalization policy does not equate to “full openness.” The Swiss government has adopted a local-first, foreign-restricted strategy:

1. Only locally licensed land-based casinos are eligible to apply for iGaming licenses.
2. Foreign iGaming operators wishing to enter the Swiss market must partner with local casinos to conduct iGaming operations.
3. Additionally, the government enforces an IP blocking system, strictly limiting unauthorized offshore iGaming websites from providing services to Swiss users, in order to protect the competitive advantage of local legal gambling platforms.

Swiss Gambling Market Outlook

Despite high entry barriers, the Swiss gambling market has strong growth potential. As one of the countries with the highest per capita GDP in the world, Swiss residents enjoy extremely high disposable income and spending power, particularly in entertainment consumption, which remains stable.

More importantly, the Swiss government approved 22 new land-based casino licenses by the end of 2023, which will officially take effect in 2025. Some of these licenses allow holders to operate iGaming businesses. This means that more local casinos can collaborate with technology partners to enter the iGaming sector.

At the same time, the Swiss National Bank's monetary policy shift is also creating a favorable external environment for the gaming market:

1. Switzerland becomes the first major economy in the world to begin easing monetary policy from March 2024;
2. There was a surprise 50 basis point rate cut in December 2024.
3. There was a surprise 50 basis point rate cut in December 2024.

This series of interest rate cuts will reduce investment costs, stimulate capital inflows, and boost consumer confidence, which will benefit industries such as digital entertainment and online gaming. For operators who intend to expand into the Swiss gaming market, this may be a critical window for observation and layout.

Swiss Gambling Regulatory Environment

The Swiss gambling industry regulatory system can be described as "strict yet orderly." The main regulatory bodies are as follows:

1. Federal Gambling Commission (ESBK): Regulates all casino-related (including online) gambling activities.
2. Interstate Lottery and Gambling Commission (Comlot): Responsible for overseeing national lotteries and non-casino games such as sports betting.

The core regulatory principles include:

1. Protecting player rights (e.g., self-restriction tools, risk warning mechanisms);
2. Anti-money laundering review (operators must regularly submit fund flow monitoring reports);
3. Technical compliance (including data storage, security, and platform stability);
4. Blocking illegal websites and payment channels to maintain domestic market order.

Swiss Gambling Tax System

The Swiss gambling industry's tax system is divided into: state-level decentralization + federal guidance. In other words, different states may have varying taxation rules for gambling income, with tax rates differing by region. Additionally, land-based casinos with iGaming licenses must also bear "soft costs" such as regular audits, social responsibility spending, and anti-money laundering training.

Poland's iGaming Market: Huge Potential, Strict Regulation

Current Status of Poland’s iGaming Policy

Poland, the sixth-largest economy in the European Union with a population of over 38 million, has a vast iGaming market potential. However, Poland's iGaming policies are known for being strict. The country still follows the Gambling Act, which has been in effect since 2009. To combat illegal iGaming operations, the Polish government made significant amendments in 2017, strengthening its regulatory powers and establishing a "blacklist system" to block IPs and intercept payments for unauthorized iGaming websites.

Currently, Poland only permits licensed operators to offer sports betting and horse racing iGaming. Online slots, poker, and casino games are exclusively provided by the state-run operator Totalizator Sportowy. In short, Poland’s iGaming market is essentially "state-owned," with private enterprises unable to obtain the necessary licenses for iGaming operations.

Outlook of Poland’s iGaming Market

Despite strict regulation, the commercial potential of Poland’s iGaming market remains considerable. As of now, the country’s iGaming market size is approaching 2 billion euros, with steady annual growth and increasing user activity. At the same time, the issue of “illegal iGaming” is particularly severe. This is primarily because many iGaming offerings cannot be provided through legal channels and are only available from state-owned entities. Additionally, high taxes and complex procedures have led many players to turn to offshore iGaming platforms.

1. In 2021, the size of Poland’s illegal iGaming market reached 27.7 billion zloty (about 6 billion euros).
2. The volume of transactions in the illegal iGaming market accounted for more than 50% of the total iGaming market.

Note: Many industry professionals and local iGaming associations have called on the government to moderately relax restrictions on iGaming policies, especially to introduce more competition in slots and online casino games. This would help expand the tax base, reduce illegal activity, and activate the legal iGaming economic chain.

Poland's Gambling Regulatory Environment

Poland's gambling market is regulated by the Ministry of Finance:

1. Issuance of sports and horse racing gambling licenses
2. Management and maintenance of a blacklist of gambling websites
3. Oversight of the compliance of the state monopoly platform Total Casino
4. Enforcement of advertising regulations, protection of minors, and anti-money laundering policies

Poland also has legal enforcement bodies that pursue criminal charges for illegal gambling activities, with high fines for violators. However, due to limited technical capabilities, the illegal iGaming market still has some room for operation. Currently, Polish gambling laws prohibit all forms of unofficial gambling advertising.

Poland's Gambling Tax System

The tax structure for Poland's gambling industry is based on "turnover," in contrast to the "gross revenue taxation" model used in most European countries.

ps: The turnover tax model imposes a high burden on gaming operators, who must pay taxes even if they do not make a profit; it directly affects the profitability of the platform and indirectly drives gaming players to low-tax or unregulated gaming platforms;

Summary

As various countries worldwide continue to reform their gambling laws and open up iGaming licenses, what was once a "regulatory blind spot" could soon transform into a "hotbed for investment." At the same time, with European nations adopting more relaxed fiscal policies, increasing public investment, and restoring consumer confidence, the digital entertainment industry—particularly iGaming—could be entering a new growth phase. For gambling platforms, this presents both a regional opportunity and a strategic entry point.

Germany, as the industry’s “big brother,” has a unified regulatory framework and a massive market size. However, it still struggles with high tax burdens and persistent illegal platforms. Switzerland, on the other hand, is a classic "high-barrier, premium market," best suited for operators with strong local resources and technological expertise. Meanwhile, Poland, a "sleeping giant" with a population of 38 million, has the potential to unleash tremendous market vitality once its gambling regulations become more open.

Of course, opportunities and risks go hand in hand. Gambling policies, taxation systems, and compliance requirements vary significantly from country to country. A single misstep could lead to regulatory violations. In this complex landscape, finding a white-label iGaming partner with both technological and operational expertise can significantly increase your chances of successfully entering, scaling, and sustaining a presence in the gambling market.

TC-Gaming White Label, with 17 years of hands-on experience, is committed to helping iGaming operators seamlessly navigate the entire operational process—from system setup to payment integration and game content access. TC-Gaming understands that behind every gambling market’s regulations lies a combination of technical and operational challenges—an area where we excel. If you’re planning to enter the European gambling market, now is the critical window for strategic expansion. Choosing TC-Gaming means choosing a proven and reliable long-term partner with real-world experience.