German Federal States

NRW emphasizes quality in gaming arcades.

In North Rhine-Westphalia, amusement arcade quality will take precedence over the new minimum distance rule, bringing relief to industry associations like DAW and DAV, as detailed below.

SymClub
May 12, 2024
3 min read
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The arcade industry is currently in a deep crisis due to the coronavirus pandemic.
The arcade industry is currently in a deep crisis due to the coronavirus pandemic.

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NRW emphasizes quality in gaming arcades.

North Rhine-Westphalia has altered its new Gambling Act (GlüStV) regarding gaming arcades. The stringent 350-meter minimum distance requirement, which could have spelled doom for many gaming arcades and betting shops, has been relaxed to safeguard operators and player protection. Quality standards for amusement arcades are now a priority, a decision welcomed by significant industry groups like the DAW and DAV. What exactly are these requirements?

Revised minimum distance of 100 meters

From a recent lawyers' hearing in North Rhine-Westphalia encompassing over twenty specialists, gaming arcades and betting shops have received favorable news. The intial strict minimum distance rule of 350 meters has been altered to 100 meters. The 350-meter standard will, however, still apply between gaming arcades and schools/daycare facilities. Special accommodations may also be considered if this specific distance isn't met.

For gaming arcades and betting shops near public schools, daycare centers, and child and youth welfare facilities with a distance of less than 200 meters, additional measures are necessary to prevent enticement towards adolescents. Over these adjustments, the industry can breathe a sigh of relief as they would've resulted in numerous closures, adversely affecting hundreds of employees.

DAW and DAV applaud changes

Prominent industry entities such as Deutsche Automatenwirtschaft e.V. (DAW) commend the legislators for prioritizing gaming arcade quality and player protection over the minimum distance criteria. DAW President Georg Stecker, a committee member in NRW, expressed his satisfaction, appreciating the legislators' quality-centric approach. Stecker found it groundbreaking and comforting that quality features of gaming arcades dominated legislation.

Deutscher Automaten-Verband e.V. (DAV) CEO Horst Hartmann shares Stecker's optimism. Nonetheless, he sees scope for improvement. Particularly, the operational investment timeline should be taken into account when licensing gaming arcades. This would bolster business's planning and investment security, which gains import as arcades reel from the pandemic-induced closures.

The lockdowns sparked major backlash from DAW - Stecker considered it a severe blow to the entire gaming machine industry, with nearly 70,000 employees represented. These closures provoked not just job losses but also propelled more people towards illegal gaming providers, an issue since the primal lockdown.

Rhineland-Palatinate: 500 meters proving lethal for amusement arcades

Rhineland-Palatinate presents an alarming edifice for the potential effects of the minimum distance regulation, exhibiting over 500 meters between gaming arcades and schools/daycares. The same distance standard applies to commercial places. Currently, 329 out of North Rhineland-Palatinate's 610 amusement arcades will face closure. Trier is one of the hardest thrashed areas, with 20 out of 22 arcades facing the axe; and this doesn't include the six in Trier-Saarburg, two in Vulkaneifel, four in Bitburg-Prüm, and ten in Bernkastel-Wittlich.

The impacts of such changes are startling: eroded municipal revenue (up to 20-30 million euros annually), unemployment, and more. However, a similar picture is emerging in other German cities, including Berlin, projected to decline from 496 gambling spots to 120. The current minimum distance criterion being 500 meters, the same woes loom. Birmingham's Salamander Group and Löwen Entertainment expressed strong opposition, viewing the situation as messianic.

Experts on the fence about minimum distance

Minimum distance's efficiency and the consequential closures perplex experts. Michael Mätzig, head of the Rhineland-Palatinate Association of Cities and Towns, believes the draft misleads readers. The document conspicuously omits the fact that municipalities would lose up to thirty million euros in annual tax revenue and see two thousand workforces exit.

Moving forward, it's essential to address the impact of these regulations and consider appropriate alternatives. Only then can we ensure a thriving, protected gaming environment.

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Based on Mätzig's observations, these figures are significant and warrant further examination. Providing alternatives for individuals who lose their jobs during the coronavirus pandemic might be challenging. Furthermore, the skill level among arcade employees is minimal, with many unskilled workers and mini-jobbers being impacted. The future of these situations remains uncertain.

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Source: www.onlinecasinosdeutschland.com

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