Quiet exhibition showcasing the world of arcade games.
The upcoming Gambling Act (GlüStV 2021) is set to take effect in July, causing concern among industry professionals. While online gambling is set to be legalized, stricter rules for gambling halls may cost numerous establishments their existence. One such policy, the minimum distance rule, is threatening countless gambling halls and betting shops across Germany. As a result, the industry has been fighting against its implementation for months. In response, a silent protest was organized in Baden-Württemberg to highlight the loss of over 8,000 jobs.
The coronavirus crisis and lockdowns aren't the only challenges facing Germany's arcade industry. The new German Gambling Act includes a minimum distance requirement, ranging from 350 to 500 meters, between gambling facilities and between gambling facilities and schools/kindergartens. The strict regulation has led to the potential closure of hundreds of arcades, jeopardizing the employment of around 8,000 people in Baden-Württemberg alone.
According to industry experts, 80% of gambling halls may be affected by this rule. The two associations DAW (German Automated Gaming Industry) and AVBW (Automated Gaming Association of Baden-Württemberg) predict that 8,000 out of the total 10,000 jobs in Baden-Württemberg could be at risk.
The new minimum distance rule is part of the German State Treaty on Gambling, which will be implemented in July and has been approved by all 16 federal states. North Rhine-Westphalia made waves with its decision that the quality of amusement arcades should take precedence over the distance restriction. The DAW welcomed this decision, claiming it would benefit terrestrial gaming. However, Baden-Württemberg's Green-Black coalition insists on a 500-meter minimum distance rule.
Industry leaders are not happy with the plans, with Georg Stecker, CEO of the DAW, criticizing the proposed rules. He believes regulating gambling venues using a yardstick is ludicrous, considering the impending legalization of online casinos. Instead of using antiquated rules, the government should focus on quality control and staff training to protect children and young people.
Dirk Fischer, CEO of the AVBW, shares a similar sentiment, stating that shutting down many businesses would create thousands of unemployed citizens in the midst of a difficult pandemic. Connecting this decision to the industry's generational aspect, Fischer notes that many businesses are run by families who have held the establishment for generations. Their sudden closure would be a surprise to the state's economy.
In an open letter, Benjamin Melzer, CEO of Admiral Entertainment GmbH, expressed his confusion about the necessity of closing some retailers and destroying jobs despite the upcoming online gambling legalization. Contrastingly, North Rhine-Westphalia and Bavaria have chosen to avoid the downfall of the arcade industry, granting an additional seven-year transitional period before the distance rule is enforced. This decision will save over 2,500 jobs and maintain tax revenues of up to 30 million euros annually.
The clock is ticking, and it remains to be seen whether the minimum distance rule will be prevented in Baden-Württemberg. However, in Rhineland-Palatinate, it took weeks of scrutiny and debate to reach a decision, questioning the need for the minimum distance rule. The Interior Committee struggled to reach an agreement for nearly two months.
With June 30th marking the end for many gambling halls, the industry awaits a possible reversal of this policy in Baden-Württemberg. This issue has sparked substantial controversy and reminds us that there are times when modern regulation should take precedence over strict restrictions.
The upcoming implementation of the minimum distance rule by the Baden-Württemberg government has raised concerns among some, including Michael Mätzig, Director of the Rhineland-Palatinate Association of Cities and Towns. Mätzig believes that the law misleadingly portrays the liberalization of the online sector, calling it into question. Furthermore, the draft doesn't seem to mention the potential loss of tax revenue cities might face - between 20 and 30 million euros - due to the reduction in amusement arcades. Additionally, it neglects to mention the risk of losing 2,500 jobs.
As the deadline to implement the rule closes in, it's unclear if the government will take any action to address the intense backlash from the industry. With the possibility of 8,000 people losing their jobs without a second thought, failing to react could lead to negative publicity.
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Source: www.onlinecasinosdeutschland.com
