Commission Decision (EU) 2025/317 of 20 June 2024 on the measures State Aid SA.44944 (2019/C ex 2016/FC) and SA.53552 (2019/C ex 2019/FC) - Tax treatment of public casinos operators – and alleged guarantee for public casinos operators (Wirtschaftlichkeitsgarantie) – Germany (notified under document C(2024) 4183)

The 16 special tax schemes applicable to public casinos operators in the 16 German Länder (as described in Section 4.1 of the recitals) constitute State aid schemes unlawfully put into effect by Germany in breach of Article 108(3) of the Treaty on the Functioning of the European Union. The aid granted under those aid schemes is incompatible with the internal market.

By way of derogation from paragraph 1, the scheme applicable to public casinos operators as from 1 January 2024 in the Land Hamburg (Law of 24 May 1976 allowing a public casino, amended by the law of 21 December 2023) does not constitute State aid.

Germany shall recover the incompatible aid granted under the aid schemes referred to in Article 1 from the beneficiaries.

Individual aid granted under the aid schemes referred to in Article 1 which, at the time it is granted, fulfils the conditions laid down by a Regulation adopted pursuant to Article 1 of Council Regulation (EU) 2015/1588⁽¹⁹⁷⁾ or pursuant to Article 1 of Council Regulation (EC) No 994/98⁽¹⁹⁸⁾ or by any other approved aid scheme is compatible with the internal market.

The sums to be recovered shall bear interest from the date on which they were put at the disposal of the beneficiaries until their actual recovery.

The interest shall be calculated on a compound basis in accordance with Chapter V of Regulation (EC) No 794/2004.

Germany shall abolish the incompatible aid schemes within four months following the date of notification of this Decision. The amended tax schemes shall apply at the latest with effect from the tax year following the notification of this Decision.

Recovery of the aid granted under the aid schemes referred to in Article 1 shall be immediate and effective.

Germany shall ensure that recovery is implemented within six months from the date on which the current tax year elapsed.

Within four months following notification of this Decision, Germany shall submit a detailed description of measures already taken and planned to comply with this Decision and in particular to ensure that the aid measures are abolished. Germany shall in particular submit the following information:

1. a detailed description of the measures taken to put an end to the aid schemes;

2. detailed explanations on the calculation methodology chosen to establish the entertainment tax.

Within six months following the notification of this Decision, Germany shall submit the following information:

1. calculations of the amount of aid received under the aid schemes referred to in Article 1 by each of the beneficiaries until the end of the tax year preceding the notification of this Decision;

2. calculations of the amount (principal and recovery interests) to be recovered until the end of the tax year preceding the notification of this Decision.

Within four months starting from the date on which the current tax year elapsed, Germany shall submit the following information:

1. the total and final amount of aid received by each of the beneficiaries under the schemes (including the current tax year);

2. the total amount (principal and recovery interests) to be recovered from each beneficiary;

3. documents demonstrating that the beneficiaries have been ordered to repay the aid.

Germany shall keep the Commission informed of the progress of the national measures taken to implement this Decision until recovery of the aid granted under the schemes referred to in Article 1 has been completed. It shall immediately submit, on simple request by the Commission, information on the measures already taken and planned to comply with this Decision. It shall also provide detailed information concerning the amounts of aid and recovery interest already recovered from the beneficiaries.