The background

A 5.3% tax on turnover has been signed into law on 23rd of June 2021 in Germany and is effective from 1st of July 2021.

What it means

A 5.3% tax on every bet being placed on an online slot means an operator can not offer an RTP over 94.7%.  This is because at 94.7% RTP, the operator would break even exactly on a bet-level, but obviously would lose money as marketing, employees and general operation have to be financed somehow. So, an adjustment of the RTP is needed.

Bonus Spin - the solution for Germany's 5.3% turnover tax

How to provide engaging, fun slots while staying profitable and compliant with German regulation as an operator?  
The answer we have developed at Hölle Games is "Bonus Spin", a solution that allows to provide games with a lower RTP, and thus soften the tax exposure, yet continues to provide an experience that customers are used to.

A "Bonus Spin" is essentially another spin against the base-game at current stake. Slightly similar to how Free Spins work, but with a different purpose. Bonus Spins' are part of the same game-round as the paid bet, yet, provide an additional spin for the player which reduces the mathematical RTP while giving players another spin to play for and thus recreating an experience of a higher RTP game - we call this experienced RTP, or short xRTP.

A different way of looking at RTP is how many spins a customer has available on average, given a certain RTP and a certain budget.  As a simple example we are looking at a 94% RTP slot with a budget of 1 Euro to spend: 1 / 1 - 94% = 16.67.  This means on a regular 94% slot game a customer has an average of 16.67 spins available for a budget of 1 Euro.  With Bonus Spins we are achieving a mathematical RTP of 88%, which softens the tax exposure, and an experienced RTP (xRTP) of 94%, along with an average spins to spend 1 Euro of the same 16.67.

With the Bonus Spin mechanic, Hölle Games is giving the spins back to Germany.

Hölle Games Bonus Spin is a simple solution because from a player's perspective, the overall experience remains the same.
The following video shows the Bonus Spin in action.

Balancing RTP and profitability

Now you know how Bonus Spin works, let's look at some more details and how Bonus Spin fits into the RTP landscape.
The table below shows how a slots operator will be taxed, calculated into the GGR-equivalent %-age number and cross-referenced with RTP.

Simply lowering a slot RTP though means customers will get fewer spins for their bankroll (see "Average spins to spend 1 EUR (STS)"), and it can be argued that many would simply not accept excessively low RTPs (e.g. less than 84%).
See table below on how Bonus Spin fits in and how the xRTP ranks compared to regular slots.

Mein Gott! So more five second spins?

More spins, YES.  Five second spins, NO!  Bonus Spins are actually part of the same game round.  This means more spins - and also quicker spins.  Added excitement for the customer, no artificially extended sessions for the operator.

The bottom line

Although there might be other solutions to this challenge, ours is simple, elegant, and designed as a great compromise for both the customer and operator.  If our idea gets copied, fine by us - we're happy to positively contribute to the success of the German iGaming industry.

Hölle Games - giving the spins back to Germany!