Gambling sector: German public capital injection in favour of WestSpiel is incompatible state aid
Today, the European Commission concluded that a public capital injection by Germany into the casino operator Westdeutsche Spielbanken GmbH & Co. KG (WestSpiel) violates EU state aid rules.
Following the opening of an in-depth investigation in December 2019, the Commission assessed whether two measures in favour of WestSpiel taken by the NRW.BANK, was in line with state aid rules. The NRW.BANK is 100% owned by the Land North Rhine-Westphalia (NRW). The two measures consisted of:
- An annual loss coverage from 2009 to 2015 (EUR 63.6 million);
- A 2015 capital injection ( EUR 64.8 million).
The Commission concluded that while the loss coverage aligned with state aid rules, the 2015 capital injection provided an unfair economic advantage stemming from state resources, as it would not have been undertaken by a private investor.
Germany must now recover EUR 64.8 million plus interest. A non-confidential version of the decision will be made available under the case number SA.48580 in the state aid register.