Leaders opt for lawful sanctioning.
The premiers of the 16 German states have agreed to the GlüNeuRStV, which legally permits online gambling in the country starting from July 2021. However, the approval of the state parliaments is still required before it can take effect. Additionally, the question of a central regulatory authority remains unresolved. Let's break down the latest developments.
Move towards a regulated market
After the passage of temporary rules for reputable online gambling providers, the state leaders ratified the Interstate Treaty on the Reform of Gambling (GlüNeuRStV) at their annual conference last month. This marks the beginning of a comprehensive overhaul of Germany's gambling regulations.
Previously, online gambling was considered illegal in Germany, with the state holding a monopoly on lotteries and sports betting. Mostly EU-licensed providers operated illegally within a legal gray area. However, Schleswig-Holstein was an exception. They broke from the original State Treaty on Gambling in 2011 and issued licenses to reputable online casino operators in 2012.
Dirk Schrödter, head of Schleswig-Holstein's state chancellery, celebrated this development as a significant step forward. The new state treaty, passed by the state leaders in March, creates a fair and attractive online gaming market in Germany. This will help divert customers from the black market.
But there's a catch. The GlüNeuRStV must now be ratified by 13 of the 16 German state parliaments by April 30 and converted into valid state law. The legal process has already faced delays in Brussels, as several issues with the regulations were raised.
Separation of slot machines and table games
One of the legal amendments that has raised eyebrows is the requirement for real-money slot machines to be offered separately from table games like blackjack or roulette. Online casinos would offer these slots, while table games could potentially be offered via the state lottery monopoly, if individual states grant licenses. The German Online Casino Association (DoCV) criticized this move, arguing that it was incoherent and could harm successful market channeling.
Players would consider both slots and table games online casino games, and they'd expect to access both on the same platform. Instead of a fair, stable market, this regulation creates a hybrid system that only benefits monopolies.
Differing opinions on the amendment
The Deutscher Sportwettenverband (DSWV) also commented on the new legislation. While they welcomed the move to award the first German betting licenses, they have concerns about several unresolved specifics. President Mathias Dahms criticized the lack of technical contact persons and the threat of severe penalties for rule-breaking.
The integrity in baseball industry association IBIA spoke out against the ban on live betting. There's no solid evidence that live or in-play betting encourages problem gambling, and it doesn't prevent illegal match-fixing, which primarily originates in Asia.
Meanwhile, integral associations like DAW (German Automatic Gaming Industry) and DLTB (German Lotto and Totoblock) praised the new law. Jürgen Häfner, Managing Director of Lotto Rheinland-Pfalz, expressed his satisfaction with the treaty. He believes it emphasizes the importance of lotteries in the expanded gaming market. Furthermore, the DAW expressed joy that the new legislation will be the first to apply qualitative criteria when licensing gaming arcades.
The uncertain regulatory authority
With the signature of the state premiers, the establishment of a central gambling authority is being considered. It will likely be based in Saxony-Anhalt. However, details about its financing, whether it's a state-owned building or rented, and the working methods remain unknown.
Georg Wacker, Managing Director of Lotto Baden-Württemberg, urged for the authority to be established as quickly as possible and for the ratification to be followed by action. Protecting children, young people, and consumers is the top priority. The GlüNeuRStV, without the authority in place, is essentially just a complex document. It's still uncertain how legalization will unfold going forward.
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Source: www.onlinecasinosdeutschland.com
