Casino regulations in Lower Saxony are modified.
The state of Lower Saxony has recently agreed to several amendments to its Gaming Act (NSpielbG). These amendments will be presented to the state parliament in Hanover, with plans for a single casino license enabling the operation of up to ten casinos in the area. This is intended to prevent competitive situations. The new Interstate Treaty on Gambling (GlüStV 2021), which has been in effect since July, is responsible for these changes.
The treaty not only allows for legal online casinos in Germany but also affects offline gambling establishments. For instance, arcades may be forced to close due to new minimum distance requirements, and casino laws across the federation need to be adjusted. The state government of Lower Saxony has made the first move in this regard.
So far, ten casinos are operational in Lower Saxony: Bad Pyrmont, Osnabrück, Bad Bentheim, Hanover, Bad Harzburg, Norderney, Wolfsburg, Seevetal, Göttingen, and the traditional Casino Bad Zwischenahn, all run by a wholly owned subsidiary of Austrian Casinos Austria, Spielbanken Niedersachsen GmbH. However, their tenure expires on August 31, 2024, so it's yet to be seen whether they'll retain the license.
The amended bill includes alterations to the tax law, canceling allowances for additional levies while increasing tax rates in stages. By taking these steps, the government aims to more effectively absorb casino profits while also protecting the industry during crises, such as lockdowns. The previous casinos' levies totaled around 27.5 million euros. The money is utilized for public benefits.
One critical aspect of the new gaming treaty is linking casinos to a cross-game blocking system for gamblers with problematic gambling habits. This regulation applies to online casinos and gaming arcades too. Initially, monitoring will be carried out by state interior ministries, but eventually, this role will be assumed by a central authority in Halle, Saxony-Anhalt, in 2023.
The revised gambling regulations in Germany comprise stricter player protection measures: a betting limit of €1,000 per month, a ban on live and in-play betting, a ban on table games like roulette or blackjack in the online sector, and the necessity for licensed gambling operators to demonstrate responsible gaming strategies.
These modifications were the subject of a heated debate in Lower Saxony. The FDP, represented by Christian Grascha, commended the regulation of online gambling in principle but opposed the controversial tax model, with a gaming tax of 5.3% for online slot machines and poker. This approach could force providers to lower their payout ratios to remain competitive; this could lead to fewer profits and players using other, EU-licensed, providers. Grascha referred to findings from the Ruhr University Bochum and Heinrich Heine University in Düsseldorf.
The Greens voiced concerns about the insufficient advertising restrictions. Spokesperson Susanne Menge argued that allowing large amounts of advertising could contradict the effort to prevent gambling addiction. However, the complaints seem unjustified, as the GlüStV actually bans advertising for gambling activities between 06:00 and 21:00 on radio and TV.
In Lower Saxony, the new online gambling restrictions have been seen as problematic for a significant period, with companies even receiving threats of payment blocking. Yet, this regulation presents numerous economic benefits, such as improved controls, more jobs, and substantial tax revenues. The Ministry of Finance estimates these latter benefits to amount to over 1.3 billion euros yearly, based on the 2018 results of the involved sectors.
But if the GlüStV doesn't manage to route the funds into the German market, all its objectives are at risk of falling short. The new legislation needs to evolve and enhance its restrictions and tax model to keep up. Recently, Europe's leading gaming and betting association, the EGBA (European Gaming and Betting Association), considered lodging a complaint against it with the European Union. The future is uncertain.
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Source: www.onlinecasinosdeutschland.com
