Online casino gambling and its legality in Schleswig-Holstein
In a significant shift, online gambling operators in Germany now face some of the strictest regulatory requirements globally following the nationwide legalization of online gambling in 2021. This new regulatory framework prioritizes consumer protection, transparency, and strong AML and data protection compliance.
The Gemeinsame Glücksspielbehörde der Länder (GGL), the joint gambling authority of the German federal states, is responsible for issuing and supervising licenses to operators. This federal authority oversees compliance across the country.
One of the key consumer protection measures is the monthly deposit limit of €1,000 per player. This limit aims to prevent excessive gambling. Additionally, slot machine games are restricted to a maximum stake of €1 per spin, and operators must enforce a mandatory 5-second delay between spins to slow down gameplay and discourage impulsive betting.
Anonymous payment solutions are prohibited in gambling transactions to increase transparency and reduce fraud and money laundering risks. However, cryptocurrency payments are not restricted under current legislation, though they are mostly processed by operators licensed outside Germany, such as those with Curaçao licenses.
Operators are required to implement robust Anti-Money Laundering (AML) programs in line with EU directives like the Fifth Anti-Money Laundering Directive (5AMLD). This includes customer due diligence, monitoring transactions, and reporting suspicious activities.
Operators must also comply with the EU General Data Protection Regulation (GDPR) for handling personal data and consumer protection laws ensuring transparency, clear information, and rights such as withdrawal. Commercial communications are regulated to prevent misleading promotions and protect vulnerable populations.
Affiliates working with licensed operators must also comply with the regulatory framework set by the GGL. Serious online casinos typically offer various payment systems for deposits and withdrawals, including classic credit cards, bank transfers, prepaid systems, e-wallets, and more.
The new State Treaty on Gambling, which came into force on 1 July 2021, has legalized online gambling nationwide. The state of Schleswig-Holstein was the first to legalize online gambling in Germany in 2012, despite the nationwide ban. However, this created a complex situation, as online casinos were legal only for players in Schleswig-Holstein but were advertised nationwide.
Despite the advertising warning, players from other federal states also accessed and used the online casinos, leading to a grey area. The unique approach of Schleswig-Holstein allowed private online gambling providers to operate legally within the state, requiring an official license from the state.
The GGL aims to protect players in Germany from fraud, exploitation, and financial ruin by only allowing serious providers on the local online market. Licenses from Malta, Gibraltar, and the UK are particularly renowned and widespread on the German and European market.
As of now, the GGL has issued three online licenses to Mernov Betriebsgesellschaft mbH, a subsidiary of the Gauselmann Group, Tipwin, and an unspecified third party. Customer support is an important aspect of a serious online casino, with the best providers offering friendly, competent, and responsive staff available around the clock via live chat, email, and possibly phone, as well as a good FAQ section.
The best, safest, and most popular casino games are developed by established and well-known gaming providers like NetEnt, Microgaming, or Yggdrasil. The availability of e-wallets can indicate whether an online casino is serious. Automatic spins have been abolished to prevent loss of control. A serious online gaming platform should focus on quality rather than quantity in its game selection.
Casinos operating in Germany, under the strict regulatory requirements, are required to implement monthly deposit limits of €1,000 per player to prevent excessive gambling. The casino games offered, developed by renowned providers like NetEnt, Microgaming, or Yggdrasil, must comply with stringent regulations, including a maximum stake of €1 per spin and a mandatory 5-second delay between spins, to discourage impulsive betting.
