Germany mulls over regulated online gambling market.
Germany plans to open a regulated online gambling market from mid-2021 with strict player protection measures. Online casinos, sports betting, and poker will be legalized under the Interstate Treaty on Gambling Reform. Until now, online gambling was officially illegal and mostly EU-licensed providers operated in a legal gray area. States, industry associations, and gambling addiction experts support this move for better control, job creation, and child protection.
The reform provides for unlimited gambling licenses with rules for player protection. These include monthly deposit limits and early warning systems to detect problematic gambling. A central gambling authority is planned to enforce regulations. Germany plans to follow other European markets with restrictions on advertising sports betting and limiting betting hours. The global online gambling market generated 42 billion euros in gross gaming revenues in 2017, and Germany's estimated turnover is around 1.8 billion euros, predicting potential economic benefits from regulation.
A Breakthrough in Online Gambling Reform
After years of debate, Germany agreed to regulate online gambling, with online casinos, sports betting, and poker set to be legalized from July 1, 2021. This reform, called the State Treaty on Gambling Reform, aims to steer the multi-billion euro market in an EU-compliant direction and improve control.
Germany has previously held a monopoly on lottery and sports betting, and EU-licensed providers operated within a legal gray area. One exception is Schleswig-Holstein, which broke free of the original State Treaty on Gambling in 2011 and started issuing licenses to reputable online casinos in 2012. Schleswig-Holstein's state chancellery head, Dirk Schrödter, believes the new reform will provide a "sufficiently attractive online gambling offer" to channel gambling into the legal market.
Greater Control and Security with Regulation
The German gambling industry also supports the legalization of online casinos, with associations such as Deutsche Automatenwirtschaft e.V., Fachverband Spielhallen e.V., and Bundesverband Automatenunternehmer e.V. calling for such measures. They hope for better control, more jobs, and increased protection for children and young people.
Wolfgang Kursawe, head of the specialist department for gambling addiction at Drogenhilfe Köln, believes it's necessary to control and not ban online gambling. He told Tagesschau, "I don't think it's in line with the times to try to ban certain things online. Offers from Malta and Austria come in every day."
To maintain high security standards, Germany plans to issue official gambling licenses. However, strict rules for player protection will apply. This could involve monthly deposit limits of 1,000 euros per player, and players must be tracked in a nationwide blocking file. Licenses are currently unlimited, with control measures expected to include an "automated system" to detect problematic gambling. Individual player accounts are also mandatory.
Regulations and Restrictions on Advertising
As in other European markets, betting limits, early warning systems, blocking files, self-exclusion systems, and advertising restrictions are among the regulations. Wagering limits will apply, but may not apply to winnings. The GAMSTOP self-exclusion system from the UK is one potential example of what the self-exclusion system could look like.
Furthermore, conspicuous players will be recorded in a nationwide blocking file. Licensed providers must have all their customers' gaming data available for authority control measures. Individual player accounts are also required to prevent parallel gaming via different accounts with different providers.
Gambling marketing will be subject to restrictions, with certain conditions applying to advertising on the Internet and a ban on advertising sports betting between 6 a.m. and 11 p.m. both on the radio and Internet.
Economic Impact of Online Gambling Regulation
The regulated online gambling market is expected to generate significant economic benefits. In 2017, global online gaming market turnover reached €42 billion in gross gaming revenues. Germany's estimated turnover is around €1.8 billion, representing a 36% increase compared to the previous year. The transitional solution agreed in spring 2019 for the German sports betting sector indicates that regulation could be economically beneficial.
The goal here was to make legal the private providers and free them from the legally questionable zone. The outdated legal arrangement has been criticized numerous times, with both suppliers and sports clubs getting flak from associations for their involvement in betting sponsorship.
A recent report by the German Sports Betting Association revealed that the German sports betting market hit a record high turnover in the same year. Gambling stakes reached 9.3 billion euros, which led to tax revenue of over 500 million euros for the state. With the process of liberalization, future growth spurts are expected.
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Source: www.onlinecasinosdeutschland.com
