Merkur withdraws from Wildeshausen: tax burden as a trigger
In a surprising announcement, gaming operator Merkur recently announced that it would be closing one of its arcades in Wildeshausen, Lower Saxony. This decision marks a further step in Merkur's strategy to rethink and adapt its branch network in Germany. Within just a few months, this is the company's second arcade to close in the town southwest of Bremen. Big Star's closure is scheduled for January 31st, meaning visitors only have a few days left to enjoy the casino before it closes its doors forever.
Merkur Casino GmbH cites the high municipal entertainment tax in Wildeshausen as the main reason for the closure. This tax was increased from 24% to 26% at the beginning of last year, apparently placing an unsustainable financial burden on the company. This is not the first time the tax has been raised in the region. There have been several increases in recent years that have put Merkur under increasing pressure. Despite the concerns raised by gaming industry representatives, the city government's voices do not appear to have been heard.
Dissatisfaction at Merkur: savings potential exhausted
Merkur expressed extreme dissatisfaction with the situation. It is no longer possible to operate the arcade because all available savings potential has already been exhausted. The strict regulatory requirements and the recent tax increase left no scope for price increases at the machines or longer opening times to offset the financial burden. Benjamin Bredenkamp, Managing Director of National Sales Merkur Casino, emphasized that the closure of the arcade will affect the quality of the gaming offering and service in the branch.
Job loss and illegal gambling
The closure of the arcade not only has financial consequences, but also social consequences. Twelve employees are losing their jobs, which is an unfortunate development. In addition, Merkur fears that the closure will lead to a decline in entertainment tax revenue in Wildeshausen. The company had already emphasized this several times before. Another worrying consequence could be that illegal gambling becomes more prevalent. With the decline in regulated offerings, player protection could suffer, as illegal operators often do not adhere to the same legal standards as regulated companies.
Conclusion: Merkur's strategy adjustment and the consequences for the community
The closure of the Merkur arcade in Wildeshausen is a clear signal of the ongoing challenges facing the gaming industry in Germany. While Merkur adapts its strategy to remain economically viable, communities like Wildeshausen are faced with the challenge of compensating for lost revenue and curbing illegal gambling. It remains to be seen how this development will impact the industry and affected communities in the long term.
