Halle gets new gambling authorities.
Germany's legalization of online gambling is quickly approaching, and a central gambling authority in Saxony-Anhalt has been causing some controversy. The location and financial aspects of the authority were still uncertain. However, the state government has now clarified some details: Two gambling authorities will be established in Halle (Saale). One will be responsible for monitoring online gambling at a national level, while the other will oversee Saxony-Anhalt.
Protecting players is a top priority as the online gambling market prepares to open. The establishment of a central gambling authority is a key focus for parliamentary working groups. The authority will be located in Saxony-Anhalt and is set to create 110 jobs. There's been confusion about the location and financing of the authority, with the SPD and the Left Party speaking out against the unresolved details.
Now, there's movement on the issue. The state government has decided to establish two gambling authorities in Halle (Saale): a federal one and a state-focused one. The smaller authority will be established later, but the federal one is expected to begin work in time for the market opening on July 1, 2021. The state administration office has already started recruiting staff, and negotiations to rent a property are underway. The main focus of discussions now is on effective player protection. The legalization of online gambling allows for better controls.
With the introduction of the new gambling regulation treaty, known as GlüNeuRStV, strict player protection measures will be put in place. Some of these measures include a monthly betting limit of 1,000 euros, a 1 euro per spin limit for online slot machines, a ban on live betting and table games, and the mandatory use of early warning and blocking systems for operators. Licensees must also operate a digital data backup system at their own expense, which authorities can use for quick and comprehensive checks. This data must be available to operators from July.
The SPD had criticized the monthly betting limit of 1,000 euros as being too low for Saxony-Anhalt, which has one of the lowest per capita incomes. However, a deal has been reached: The SPD and the Greens will support the new law, and in return, Saxony-Anhalt will expand its network of addiction counseling centers. These centers were previously limited to Magdeburg, but some will now be set up in Halle, Dessau-Roßlau, Stendal, and Halberstadt. Funding is to increase from 175,000 euros to over 500,000 euros.
The Green Party emphasized the importance of clear standards for the prevention of gambling addiction. The SPD agreed that Saxony-Anhalt needs a functioning addiction prevention system, with violations of the new rules to be punished harshly and effectively.
The process of implementing the new State Treaty on Gambling began in November 2020, but complications arose in Saxony-Anhalt. The state law must be passed by the working groups of the 16 parliaments and approved in parliament. Last week, Saxony-Anhalt passed a consent and supplementary law. If this law isn't ratified by a majority, the ratification process could fail.
Another concern is the proposed tax model for online casinos, which consists of an 8% tax on the stakes placed on online slot machines. This means that the tax would apply to every spin, forcing operators to adjust their payout ratios.
New research suggests that the rate of online casino games in Germany must decrease from 96% to 88% in order for legitimate establishments to remain competitive. Such a reduction would render the gaming experience less appealing to players, which could cause the new gambling law's primary objective - to divert gaming into legal markets - to fail. At present, there have been no comments from government offices regarding this matter.
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Source: www.onlinecasinosdeutschland.com
