Impact of Government Failure on Gambling in Germany: Exploring Potential Consequences for the Gaming Industry in the Country
The State Gambling Treaty, a comprehensive agreement signed by the federal states, is scheduled for review in 2026 and is set to expire in 2028. This treaty, which provides for the GGL as the central authority for gambling in Germany, was drafted during the CDU's term in power.
Currently, the treaty is not directly influenced by politics at the federal level, with the federal government, under the traffic light coalition led by Federal Chancellor Olaf Scholz (SPD), staying out of the details of gambling regulation. However, a review of the treaty is scheduled for 2026, and the extension of the treaty beyond 2028 will be a key issue.
Individual states could theoretically opt out of the State Gambling Treaty, but there are no specific publicly available positions of the major parties (CDU/CSU, SPD, Greens, Left, FDP, and AfD) on the extension of the treaty as of now. The collapse of the traffic light government could reshuffle the political landscape, potentially influencing the parties' positions on the matter.
The Greens advocate for stricter regulations and better youth protection in gambling, while the FDP generally advocates for fair competitive conditions and could strive for an opening of the gambling market. The Left criticizes the fact that a large part of the gambling market is in private hands and criticizes the new party BSW. The AfD has criticized the plans of Marco Buschmann regarding gambling.
The previous Minister of Justice, Marco Buschmann (FDP), had plans to reform the Criminal Code and amend some paragraphs on illegal gambling. However, a resulting decriminalization was predicted by several sides, which would not be in line with the rule of law. Whether Buschmann's possible successor will continue these plans remains to be seen.
The Joint Gambling Authority of the States (GGL) was established as the central authority for gambling in Germany during the term of the traffic light coalition. As of now, there are no indications that the federal government, under a potential new chancellor, will change this approach to gambling policy. The election platforms of parties aiming to enter the Bundestag in February 2025 do not focus significantly on gambling policy.
In conclusion, the future of gambling regulation in Germany will be shaped by the review and extension of the State Gambling Treaty in 2026 and 2028, respectively. The positions of the major parties on these matters are yet to be clearly defined, but the Greens and FDP have expressed their views on stricter regulations and fair competitive conditions, respectively. The current frontrunner for the chancellorship is Friedrich Merz of the CDU, and his stance on gambling regulation remains to be seen.
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