Nine federal states have given their consent to the GlüStV.
As the regulation of online gambling in Germany approaches, it's important to note that for the market of licensed online casinos, online sports betting, and online poker to open up starting from July, at least 13 out of the 16 state parliaments must approve the new State Treaty (GlüStV). The latest states to approve the gambling law are Thuringia, Berlin, and Mecklenburg-Western Pomerania, bringing us to a total of nine. But what's the status in the other states?
FDP Criticizes Betting Limit
It seemed like everything was falling into place after these three states made their decisions, but that was just the tip of the iceberg. The State Treaty now needs to be converted into valid state law, and that requires the approval of at least 13 parliaments. Nine federal states have already approved the gambling law - most recently, Thuringia, Berlin, and Mecklenburg-Western Pomerania.
In Thuringia, the approval happened last Thursday in the state parliament. Olaf Müller, the Green Party's science policy spokesperson, sees the new gambling law as ensuring a legal offering appropriate for the times, responding well to the growing digital gambling market.
The Free Democratic Party (FDP), however, abstained and called for more changes. They particularly criticized the planned betting limit of €1,000 per month, saying it represents a general suspicion against all players. The FDP's parliamentary group leader, Thomas Kemmerich, called this unacceptable paternalism. Only the AfD voted against the GlüStV in Thuringia.
The prospective nationwide regulation of online gambling could put an end to years of legal disputes. Online gambling was previously officially illegal in Germany. While the state held a monopoly on lottery and sports betting, most EU-licensed providers operated in a legal grey area. Schleswig-Holstein was the exception: in 2011, the state broke free from the original Gambling Act's restrictions and began issuing licenses to reputable online casinos in 2012. Following the ratification of the GlüStV, Dirk Schrödter, Head of the State Chancellery of Schleswig-Holstein, saw it as a major breakthrough.
Debate in Mecklenburg-Western Pomerania
In Berlin, where the initial ratification of the GlüStV took place in December, the House of Representatives also gave its approval. The same goes for the parliament of Mecklenburg-Vorpommern, where there was a lively debate about the effects of the new law. The SPD praised the move to bring more customers into the legal sector and appreciated the minimum distances between arcades.
The AfD, on the other hand, criticized the long-overdue implementation and still felt the measures for player protection weren't good enough. They also noted the failure to bind licensed providers to the follow-up costs of problem gambling or get them involved in counseling services. The AfD rejected the GlüStV in Mecklenburg-Vorpommern.
The Left Sees Many Ambiguities
The Left Party emphasized that the GlüStV is a political compromise - financially speaking, the treaty itself is a gamble. Estimating the final amount of tax revenue was proving difficult, as was calculating the potential costs for the gambling authority in Halle and the impact on the budget.
The Left Party therefore also rejected the GlüStV. However, the votes of the SPD, CDU, and Greens meant the law was approved, making it nine approvals so far. Along with the three states mentioned above, positive decisions on the new gambling law have been made in Hamburg, Saxony-Anhalt, Brandenburg, Baden-Württemberg, Hesse, and Rhineland-Palatinate.
Economic and Social Opportunities
The regulation of the rapidly expanding online gambling sector presents many economic and social opportunities for the federal states. Experts predict better control options, more jobs, and significant tax revenues. The German finance ministries expect the sector to generate additional revenue of about €1.365 billion. This estimate is based on the turnover generated by the market in 2018.
In the world of sports betting, it's become very common. Germany experienced a major milestone in 2019 with betting amounts reaching a whopping 9.3 billion euros. Interestingly, soccer matches took the cake, with an overwhelming 90% of bets placed on them. As a result, the government raked in around 500 million euros in extra revenue at a tax rate of 5% on bets made.
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Source: www.onlinecasinosdeutschland.com
