Düsseldorf to establish a sports betting regulatory body.
The government of North Rhine-Westphalia in Düsseldorf is proposing to create a surveillance agency specifically for the oversight of sports betting and reputable online casinos. This initiative is taken due to the State Treaty on Gambling that surfaced in March 2019. This treaty calls for the establishment of player databases, among other demands. The proposed regulatory body will also monitor bets placed online. But how feasible are these plans?
Unresolved cost collection issues
With the new State Treaty on Gambling, the Düsseldorf government is advocating for a powerful supervisory authority in the sports betting industry. This body would be responsible for managing and keeping records of all relevant data related to sports betting. It's been said that this would mean every individual, for instance, betting five euros on their preferred club would be tracked by the state and have their name, age, birthplace, and address recorded. Düsseldorf wants to be the home of this authority's headquarter.
While other states like Hesse, Baden-Württemberg, and Schleswig-Holstein are interested in helping to establish the authority, concerns over resources emerge. The State Chancellery of North Rhine-Westphalia has stated that the new body would be accessible to other states should the need arise. Challenges persist, however, regarding the required capacity to effectively oversee the rapidly expanding sports betting sector.
The State Chancellery also acknowledges that "enormous servers and computer capacities" are necessary to fully control the burgeoning sports betting sector. Uncertainty surrounds cost recovery as well. Questions are being raised about what tasks the authority would be assigned and whether these costs can be covered by relative fees. Sources suggest that the introduction of the authority would cost "several million euros" and it would likely need around 300 employees, which could affect the practicality of such a venture.
Questioning privacy
Potential privacy concerns and threats to personal liberties arise given the government's plans. According to recent news reports, ideas regarding internet blocks are being discussed as part of the current discussions. This would prevent customers from accessing different providers simultaneously. This would also mean that players wouldn't be able to compare live odds and there could be a maximum monthly betting limit of €1,000. The new authority would oversee and enforce these regulations.
This has drawn criticism from the German Sports Betting Association (DSWV). In March 2019, the association declared that the third State Treaty on Gambling was a "small but insufficient step" in the bid to regulate the German sports betting market. They're particularly concerned about the restrictions on live betting as it comprises around 60-70% of the market. The DSWV's President, Mathias Dahms, remarked in a press release, "It is right that the federal states are finally establishing a licensing system for sports betting providers after seven years of regulatory chaos. However, it is problematic that the outdated and limiting regulations of the state treaty remain in place: the popular live betting, accounting for 60-70% of the market, is being heavily restrained and arbitrary betting limits are being imposed. This renders licensed sports betting less appealing as compared to the black market."
With conflicting reactions from the industry and widespread protest, the chairmen of state chancelleries have been in discussions over the updated conditions for sports betting and online casinos for several months. March's Berlin Conference of Minister Presidents won't lead to a conclusive agreement anytime soon. October saw the heated debate resurface as Bundesliga clubs were targeted due to the surge in betting sponsorship. Simultaneously, the German tax authorities have been receiving higher tax revenues from sports betting. It's a wait-and-see game currently.
The task of Düsseldorf
Away from the ongoing sports betting regulations, Düsseldorf is paying more attention to casinos. In September, the SPD parliamentary group in the state parliament introduced plans to construct a casino in Düsseldorf's "Schlösschen," which is the historic home of the state government. With an anticipated yearly income of up to €10 million, Düsseldorf believes this would bring added revenue. Additionally, player protection would be promoted via state supervision. However, the actual establishment of a casino in Düsseldorf is still uncertain.
Reduction in gaming arcades
In tandem with the casino building process, several gambling halls in Düsseldorf are at risk of shutting down per the new State Treaty on Gambling. This is due to a new minimum distance rule between gaming halls and schools or other halls. The limit has been set to 350 meters. Düsseldorf currently hosts about 100 amusement arcades scattered across 65 sites. However, per the new legislation, the number of arcades is to be decreased to 34. These closures are set to be executed by July 1, 2021.
This extreme step has been met with controversy: Paul Gauselmann, the owner of Merkur and main backer of the sports city, has been against the reduction of arcades in Düsseldorf since last year. He views it as a "total loss." It's also possible that Weske's plan to establish a city-owned casino won't sit well with the gaming billionaire, but there hasn't been any comment from him on this yet.
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Source: www.onlinecasinosdeutschland.com
