Limbo status for BRD amendment
Beginning July 2021, serious online gambling will become legal in Germany. However, the European Commission has prolonged the standstill period for the new gambling law until mid-September. Different interest groups have expressed concerns about the proposed legal framework. What are the essential issues?
Legal offer not appealing?
After Germany submitted the gambling bill to Brussels, the legalization of online gambling seemed like a formality. But suddenly, the EU Commission has extended the standstill period for the GamblingNeuRStV (GamblingNeuRStV) until September. Various interest groups, like Malta, have voiced their opinions, which may influence the decision. They are now waiting for a detailed but still unpublished position paper from Malta. Several European providers have licenses in Malta.
The proposed law, which needs approval from Brussels and the 16 federal states, is an extension of the third Gambling Staatsvertrag that already had special rules for sports betting. Under strict player protection guidelines, online casinos and online poker will be legalized from July 2021. But these rules are being debated now.
For instance, the German Online Casino Association (DoCV) has spoken up and said the legal offer may not be attractive enough to create a smoothly functioning market. In particular, the rule stating slot machines must be separate from other online casino games is being questioned. The reasoning for this regulation is being challenged by the industry.
GlüNeuRStV is inconsistent, according to DoCV
The problem is that slot machines and table games are considered online casino games by most people. They expect both options to be provided through the same platform. However, the GlüNeuRStV suggests rights to offer table games belong to state lotteries initially. This could lead to a monopoly for licensed providers, making them suffer from limitations.
As the DoCV stated, the system would result in an unstable and incoherent market. The regulations should be replaced with a general license system for online casinos instead, facilitating all common products.
IBIA questions live betting ban
Furthermore, it's not just the separation of slot machines and table games that is getting criticism; the €1,000 bet limit each month is also being objected to. There's also the ban on live betting, which the International Betting Integrity Association (IBIA) spoke against in February. They argued there's no evidence that live betting increases gambling-related harm.
Also, the argument that the ban protects against illegal betting agreements is baseless, as most match-fixing occurs in Asia. The restrictions would encourage further manipulation, as consumer activities could be directed to the black market. What's more, the IBIA said €1,000 betting limit lacks justification. There's no evidence it improves player protection.
Both DoCV and IBIA agree that allowing players to set voluntary spending limits would be a better way to prevent customer migration to improperly regulated black market platforms. Overregulation should be avoided, as customers might move to non-licensed websites at this point.
The German Banking Association claims that payment bans against non-licensed operators encroach upon EU guidelines regarding service freedom. Even if the measures were allowed, banks and financial institutions would require significant resources and tons of personal information to prevent transactions. Banning all offshore transactions is infeasible. The FDP faction from Lower Saxony has also criticized payment bans.
The law regulating German online gambling is in progress, but recent occurrences suggest some obstacles remain to be tackled before the market opening. The main question is whether, given the criticism mentioned, there'll be further delays or even a new regulatory journey, possibly leading to a fifth gambling state treaty.
It's evident that legalizing the flourishing market would grant better control options, boosting player protection. Economically, many perks would emerge, like job creation and enhanced tax revenues, which were approximately €500 million from taxable sports betting in 2019.
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Source: www.onlinecasinosdeutschland.com
