Hesse supports the adoption of a new state agreement.
The Hesse state government has given the green light to the new State Treaty on Gambling (GlüStV), taking online gambling in Germany a step closer to legalization. With at least 13 out of the 16 federal states needing to ratify the amendment, the market is expected to open this July, covering licensed online casinos, sports betting, and poker. COVID-19 has prompted a reconsideration of the previous ban on online gambling, as regulating the booming market according to European standards could prevent players from migrating to unregulated platforms. However, the implications for land-based gambling, such as amusement arcades, remain controversial.
Interior Minister Peter Beuth (CDU) welcomed the decision, emphasizing increased player and minor protection through the adoption of a centralized blocking system. Unlike before, when the blocks were based only on game type and region, the new GlüStV will more effectively tackle the problem of problem gambling. Previously, online gambling was prohibited in Germany, with the state holding a monopoly over lotteries and sports betting. Schleswig-Holstein was the first to move away from this in 2011, granting licenses to reputable online casinos in 2012.
The legalization of online gambling opens up new opportunities, including jobs and tax revenues. With tax debates surrounding online casinos gaining momentum, as well as a focus on player protection measures like betting limits, early warnings, and blocking systems, the German market is set to become a significant player on the international stage.
While some states, including Baden-Württemberg, have approved the new GlüStV, there is concern over its potential impact on land-based gambling, particularly the amusement arcade industry. If the new legislation is implemented as planned, it may lead to the closure of around 8,000 of the 10,000 existing jobs in this sector. Additionally, it's feared that illegal gambling will flourish in response to the new restrictions. The owner of the Gaming Machine Association in Baden-Württemberg, Dirk Fischer, considers the new state treaty to be a death sentence for land-based gambling, criticizing the now-defunct minimum distances between gaming arcades. He suggests a review of the law in a few years.
Critics argue that the new law disregards current trends in favor of outdated regulations. With the industry in transition, Dirk Fisher believes that these rules should be adapted to reflect quality rather than arbitrary distances. As it stands, around 80% of gaming arcades could face closure, further driving customers to illegal gambling.
Online gambling regulation has strict measures in place to protect players. These include advertising restrictions, a €1,000 monthly betting limit, and a €1 per spin limit for online slot machines. Online casinos will also have to navigate restrictions on live betting and table games like roulette and blackjack. Despite the potential job losses in the land-based gambling sector, measures are being put in place to ensure the safety of online players. Online gambling will be monitored and licensed under the supervision of a central regulatory authority in Saxony-Anhalt starting from July.
In conclusion, the new State Treaty on Gambling in Germany has the potential to change the landscape of gambling significantly. The approval of the Hesse state parliament signals progress towards legalizing online gambling, with other states also expressing interest. While there are concerns about the impact on land-based gambling, online casinos are expected to be subject to strict player protection regulations. As the industry continues to grow and change, it will be interesting to see how these regulations shape the future of gambling in Germany.
In summary, the State Parliament in Hesse granted its approval to the new State Treaty on Gambling (GlüStV), progressing the legalization of online gambling in Germany. A minimum of 13 federal states need to agree on the amendment. The market will open in July and will include licensed online casinos, sports betting, and poker. Taxing the market has become an important issue. The gaming machine trade, especially in Baden-Württemberg, takes the new law as a death sentence and predicts the shutdown of 80% of the arcades. For gaming machines, distances are determined by meters, no matter the quality of the institution. So they demand a review of the law after a few years. The law aims to improve player protection, but many fearing job losses, illegal gambling and slumps in casinos. Union Interior Minister Beuth announced game protection as the treatment's purpose. Schleswig-Holstein was the first to break free of the restrictions, issuing licenses for reputable online casinos in 2012. Due to a gambling boom, the German reconsideration, and the European standards passed to control the market instead of losing customers to the inadequately regulated black market, Germany is working towards channeling the market. To meet player protection requirements, there is a betting limit of 1,000 € per month, €1 per spin for the online slot machine, bans on live betting, and table games. Some believe that the new legislation goes too far, inflicting losses on amusement arcades. Copyright © 2023. All rights reserved. and the title should be "Hesse Gives the Thumbs Up to New State Treaty on Gambling: Legalizing Online Casinos in Germany and the Questions Raised". Conclusion: The legislative change could potentially affect the whole gambling landscape in Germany, with more states expected to follow in Hesse's footsteps, the law is going to set new standards, but some concerns regarding job losses and gaining entry to illegal gambling remain.
Since October 15, there have been transitional regulations in place to aid the launch of the online gambling market. Trustworthy online casinos will no longer face legal repercussions if they adhere to the new laws under the GlüStV. The legalization of online gambling might put an end to years of drawn-out regulation. At least 13 out of the 16 federal states need to approve these changes, and the future remains uncertain.
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Source: www.onlinecasinosdeutschland.com
