Schleswig-Holstein withdraws: Is the State Treaty on Gaming finished?
The new coalition of CDU, FDP, and GREENS has announced that they will not ratify the revised version of the Interstate Gambling Treaty. Instead, they plan to create new legislation to address concerns under European law. Schleswig-Holstein, the northernmost federal state, has taken this approach previously from 2011 to 2013 and is leading the way again. Other states are considering following suit.
Previously, state premiers attempted to save the state treaty in March, managing to proceed with awarding licenses for sports betting after five years of delay. However, the new version did not address important issues such as the regulation of online casinos. Critics were frustrated that the goal of the Conference of Minister Presidents was only to avoid legal action from Brussels. The "Jamaica coalition" from Kiel is not satisfied with this minimal goal. Schleswig-Holstein had a more progressive set of rules before and was the only state in Germany to issue licenses for bookmakers and online casinos. In 2014, the European Court of Justice confirmed that this unique approach was legal and certifying the content of the law. Schleswig-Holstein joined the state treaty in 2013 after a change of government.
Excerpt from the coalition agreement
"The coalition will not approve the second State Treaty Amending the State Treaty on Gambling in parliament. Schleswig-Holstein will terminate the State Treaty on Gambling and, together with other states (e.g., Hesse, Rhineland-Palatinate, and North Rhine-Westphalia), seek a viable solution for the entire area of sports betting, including online casino gaming and poker, that complies with European law and is based on the provisions of the Schleswig-Holstein Gambling Act, which was in force until 2013."
The state treaty is nearing its end. The current version, implemented in 2012, has always been controversial. The maintenance of the state lottery monopoly and the requirements for sports betting licenses, which have not been issued yet, have led to multiple court cases. The EU even announced infringement proceedings against Germany for not complying with European freedom of competition. Industry associations have also called for a fresh start in gambling legislation. The German Sports Betting Association pushed for licenses to be issued, and state lotteries felt pressure with their sales and advertising restrictions.
A chance for a fresh start?
With the FDP and CDU back in power, the gambling regulation project is returning to focus. This time, the coalition is not acting alone. North Rhine-Westphalia, Hesse, and Rhineland-Palatinate are also involved. There will be no solo effort, but a comprehensive review of gambling legislation throughout Germany. Due to the growth of online gambling and the lack of a secure legal framework, this is becoming increasingly necessary.
The negotiations between the "rebel" federal states could ultimately result in a new state treaty - including licenses for online casinos, poker rooms, and bookmakers. This would be advantageous for both lawmakers and customers. Licenses allow control over player protection through strict award criteria as well as the collection of taxes, which companies have mostly been paying abroad. Above all, a new state treaty would create legal certainty and transparency for customers - different national laws in the digital sector are nearly impossible to understand. It is hoped that as many states as possible will support Schleswig-Holstein's plan and agree on modern regulation. Regardless, it will be intriguing to see if Germany's tumultuous history of gambling legislation will soon come to an end.
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Source: www.onlinecasinosdeutschland.com
