An amendment allowing for gambling in Germany has been approved.
During the Conference of Minister Presidents in Berlin on March 12, the leaders of the federal states concluded to enact the Interstate Treaty on Gambling Revamp (GlüNeuRStV). Consequently, online gambling in Germany will become lawful starting July 1, 2021. Establishment of a centralized gambling regulatory body in Saxony-Anhalt is planned. Legal protections for players will be in place. Here's a summary:
Expected Ratification by the Federal States
Germany's federal states' Minister Presidents have endorsed the new State Treaty on Gambling that will replace the outdated one from 2011. This approval implies a fundamental reform of the German gambling market. Online casinos, online sports betting, and online poker will be legal in Germany from around mid-2021. However, the treaty still requires ratification by each state legislature.
The stated aim of the near 70-page amendment is to direct the booming market and gain better control over it by making it compliant with EU regulations. Germany previously enforced a state monopoly on lotteries and sports betting. International online gambling companies were operating in a legally ambiguous space despite owning an EU license. For years, there have been discussions about regulating online gambling in Germany.
Support from Gambling Associations
This decision is acclaimed by German gambling companies. Jürgen Häfner, Managing Director of Lotto Rheinland-Pfalz, is among the ones expressing support. Regulating the market would enable countering unlicensed providers more efficiently. Meanwhile, the company could improve upon its product range, innovate, and face the future with optimism, according to Häfner.
Georg Stecker, CEO of the German Vending Machine Industry (DAW), wholeheartedly endorsed the development too. The introduction of quality criteria for the first time represents "good news for legal gaming offers and player protection". While he stressed that the success hinges on creating top-notch legal offerings, the states bear this responsibility.
Daniel Henzgen, a member of the Löwen Group's management team, echoed a similar sentiment, expressing appreciation for the opening of the online gambling market. As a German company, Löwen allows participation in this vital growth sector. Also, the company, affiliated with Novomatic, has been working on digitized versions of its slot machines for some time.
The new state treaty symbolizes a crucial step forward. With the popularity of the games continuing to grow, there was an urgent need for a uniform solution. In 2017 alone, the iGaming industry raked in a global turnover of over €40 billion. Operators had been calling for legal regulation for quite some time.
Gambling Authority in Saxony-Anhalt
Previously, only Schleswig-Holstein permitted online gambling in Germany. The federal state opted out of the restrictive provisions of the old state treaty in 2011, initiating licensing of online casinos in 2012. Under the legal reform, a central gambling watchdog in Saxony-Anhalt will manage this function in the future.
The objective of issuing licenses is to maintain the highest standards of player protection. Guidelines to safeguard players are derived from successful models tested across Europe. Stake limits of €1,000 per month, early warning systems, and self-exclusion mechanisms, among other measures, are mandated. Additionally, a national blocking register for problem gamblers will be introduced.
To ensure the register's effectiveness and timeliness, all providers with licensed operations must disclose all their clientele's gaming data if the authorities intervene. Although unlimited licences are currently being issued, there's a risk of penalties and license revocation if multiple rule violations are identified.
Upsides of the Gambling Reform
There are several incentives for opening up the market. These include improved control options, more job opportunities, and heightened protection for children and the youth. Dirk Schrödter, Head of the Schleswig-Holstein State Chancellery, thinks this could result in funneling gambling into the legal market. Legalization is advantageous to curb the proliferation of illegal gambling.
Wolfgang Kursawe, head of the gambling addiction unit at Drogenhilfe Köln, concurs with this opinion. Allowing online gambling while maintaining control is preferred to banning it completely. Kursawe notes that gamblers receive offers from Malta and Austria daily.
Furthermore, the authorities anticipate billions in revenue. This is already noticeable in the sports betting sector, which has been subject to special regulations since spring 2019. A recent report by the German Sports Betting Association (DSWV) indicates that the German sports betting market set a record last year.
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Source: www.onlinecasinosdeutschland.com
