The gambling sector disputes Greens' stance: Ensuring illegality in gambling shouldn't undermine the legitimized sector.
Markus Schmidt, representative of the organization German Gaming Industry (GGI), has voiced concerns over a policy proposal from the Greens Party, asserting that their suggested regulations would negatively impact the legitimate gambling market. Particularly, the call for prohibiting slot machines in restaurants, in his view, is misguided.
Green Party advocates for stricter gambling laws
In advance of a three-day interior ministers' meeting, numerous Green politicians, including Ulrike Hofer, the lead parliamentarian for drug and addiction policy in the German parliament, have released a policy paper outlining proposed reforms to gambling regulations in Germany.
In the document, several key demands are laid out:
- Tougher enforcement against unauthorized gambling activities, known as "Fun Games"
- A comprehensive ban on gambling devices in restaurants and cafes
- Revisions to the Gaming Treaty, including tighter advertising regulations for sports betting providers, no exceptions for high rollers, and expansion of the OASIS system for blocking access to gambling websites
- Classifying loot boxes in video games as gambling
- Implementing stricter distance requirements and access regulations for gaming halls
- Enhancing municipalities' and authorities' ability to police the black market
Accolades and Criticisms of the Green Party's Policies
In a statement released by the GGI, Markus Schmidt has acknowledged that the Greens are addressing illegal gambling issues but disagrees with some of their proposals, stating:
We appreciate the Green Party's efforts to combat illegal gambling. However, part of the solution is preserving the legitimate gambling market aided by legal establishments such as legal gaming halls –– Markus Schmidt, representative of the German Gaming Industry (GGI), source: Presseportal.de**
Schmidt, however, has voiced concerns about the proposed ban on slot machines in restaurants. He fears that this could inadvertently boost the illicit market. Additionally, in reference to research conducted by the Working Group Against Gambling Addiction e.V., he highlighted that even limiting the number of slot machines in restaurants to a maximum of two per establishment has driven significant portions of the gaming population to unregulated channels in the past.
Moreover, Schmidt has pointed out that the Gaming Treaty should serve as a steering tool instead of an enforcing mechanism. Specifically, the industry representative has criticized the tight distances demanded by the Greens, which he deems inappropriate as a benchmark for serious gambling.
Evaluations every five years may not be sufficient
Furthermore, the Greens claim in their policy paper that the required evaluations, as stated in § 32 GluStV, every five years, do not keep pace with market developments and should occur more frequently.
The Joint Gaming Authority of the States has already acknowledged the need for additional research funding and has consequently allocated funds to support gambling research.
Hesse's Prime Minister Boris Rhein also emphasized during a meeting in May that the aim is to harmoniously develop the Gaming Treaty with the industry, requiring close cooperation among various stakeholders.
Gaming Treaty to remain valid until 2028
Currently, the Gaming Treaty is in effect until 2028 and has been ratified by all federal states. Although a scheduled 2026 evaluation could reveal areas for improvement in the legal framework, it remains unclear how swiftly any modifications would be implemented.
The gaming industry is currently reconsidering some aspects legally. For example, the Federal Constitutional Court must decide whether sports betting providers were operating illegally prior to the adoption of the Gaming Treaty, hence invalidating contracts with players. The case may even progress to the European Court of Justice.
Additionally, there is ongoing debate as to whether unlawful gambling will continue to be classified as a criminal offense in the future. Both sides present compelling arguments, signaling further political developments in this area.
These points demonstrate the extensive discussions surrounding gambling in Germany. However, implementing these discussions into tangible changes in existing legislation may take some time.
The Green Party's policy paper proposes a comprehensive ban on gambling devices in restaurants and cafes, as part of their proposed reforms to Germany's gambling regulations. Markus Schmidt, representing the German Gaming Industry (GGI), disagreeing with this proposal, fears that such a ban could inadvertently boost the illegal gambling market, as it has done in the past when restrictions were placed on the number of slot machines in restaurants.
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