Sports licensing for betting initiatives starts from January 1, 2018.
Germany's Conference of Minister Presidents (MPK) finalized the revision of the Interstate Gambling Treaty (GlüStV) last week, with no further changes to the draft (PDF). The concerns raised by interest groups and the EU about the scope of regulation were disregarded. The new regulations await ratification by state parliaments and are expected to take effect from January 1, 2018.
As a result, some sectors of the German gambling industry can operate on a legal footing. The previous limit of 20 licenses for sports betting bookmakers will be eliminated. Now, all 35 sports betting operators that comply with the 2012 criteria will receive a one-year license. This will allow these companies to open their own betting shops, reducing their reliance on intermediaries.
Licenses delayed since 2012
The administration of licenses was intended to commence in 2012, but the cap on the number of concessions led to an onslaught of legal challenges and a protracted delay in the process. This reform comes in response to continual criticism of the German state's gambling monopoly.
However, the MPK's recent action has prompted concerns. For instance, the EU criticized the omission of regulation for online casinos in a letter. The ongoing ban on online casinos is problematic because many other EU countries permit them. This unique German approach frustrates competition regulators and hinders market access for international companies.
Online gambling remains unregulated
Despite these concerns, the German federal states are persistent in defying the EU regarding online casinos, possibly risking potential infringement proceedings. Such measures could be initiated due to a violation of the freedom to provide services, a point made by the EU previously. Nonetheless, Saxony-Anhalt's Minister President Haseloff, who co-signed the reform, remains optimistic about its success. He regards the EU's statement as indicative that their concerns have been adequately addressed.
Although the situation for sports betting may appear resolved, the tense relationship between the EU and Germany over online gambling and lotteries persists. It is only a matter of time before the MPK must confront the uncharted waters of online gambling as directed by the EU.
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Source: www.onlinecasinosdeutschland.com
