GVC introduces interim guidelines.
Germany is set to legalize online gambling starting from July 2021, but how shouldEstablished operators currently active on the German market be handled in the meantime? British gambling company GVC Holdings has now proposed transitional rules to the German legislators, prioritizing player protection.
Implementation in Five Phases
The growing urgency around transitional regulations before the legalization of online gambling in Germany has recently gained attention. GVC has presented a plan with corresponding measures, allowing for a step-by-step regulation before the actual market opening. By the designated deadline, the full legal structure can be implemented.
Following GVC's proposal, the transition process could be completed in five stages. The plan aims to ensure that all new consumer protection standards are met beforehand. For potential newcomers, complete compliance with the new legislation will be necessary by the beginning of 2021 to become active in Germany. Simultaneously, this would make it possible for German players to access legally compliant operators earlier than anticipated, potentially harming the black market.
In accordance with the plan, a comprehensive internal assessment of each company would take place at this juncture. Companies would need to demonstrate their ability to implement the mandates set forth in the Gambling Neu Regulatory State Treaty (GlüNeuRStV) by this point. Specifically, this includes the reviewing of self-exclusion mechanisms and betting limits as regulated by the treaty.
Leveraging Technological Possibilities
The Gambling Novel is currently awaiting approval in Brussels, but it still requires individual state approvals. With GVC's strategy, significant time could be saved, primarily benefiting player protection. New regulatory requirements for sports betting and payment methods could potentially be introduced within a few months.
The requirements for customer verification could be implemented within ten weeks, while the new betting limits could be established within four and a half months. According to Martin Lycka, Director of Regulatory Affairs at GVC, this would wholeheartedly support the objectives of the GlüNeuRStV. They're optimistically seeking the partnership of German legislators.
It has been argued that the new state treaty's primary goal is to transfer as many market shares as possible to regulated, state-controlled providers. This ensures the best possible player protection. All technological possibilities should be fully utilized during the transitional period and brought to the market. Without this interim solution, many players would continue to lose to the predominantly non-European black market.
The GVC plan aligns with the demands expressed by the Hamburg, Bavaria, North Rhine-Westphalia, and Berlin state chancellories. They, too, have advocated for transitional regulations since late July. The phase preceding market opening could be streamlined through uniform guidelines, according to these political representatives.
The state chancellories have requested that no nationwide criminal prosecution of online casinos, which will be licensed from July 2021, occurs. However, this principle would only apply if the operators fully comply with all the requirements of the new GlüNeuRStV.
Although the method for vetting international companies that often hold licenses in Malta or Gibraltar remains uncertain, GVC's plan could provide a solution. This would protect serious providers from further action. There was substantial publicity about a gambling advertising ban in Saarland against Schleswig-Holstein-licensed operators.
Extension of the GlüNeuRStV's Standstill Period
As the German legislators deliberate over the transitional rules presented by GVC, they have been given additional time to assess these regulations. The EU Commission extended the standstill period for the GlüNeuRStV until September 18th due to critical feedback from several interest groups, who express concerns over potential overregulation in the German sector. Strict regulations could hinder the attractiveness of the legal offer.
The German Online Casino Association (DoCV) critiques, among other things, the rule that slot machines must be offered separately from other online casino products like table games. There is no justification for such a regulation; players would expect both slot machines and table games to be offered through the same platform. The planned ban on live betting would also obstruct successful channeling into the legal market.
GVC cautioned against overregulation in Germany, asserting that several requirements are neither effective nor necessary. Rather than offering the best protection, they create a dissatisfactory player experience, potentially fortifying the black market. Germany's online gambling revolution is still in its early stages.
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Source: www.onlinecasinosdeutschland.com
