German sports betting licensees face uncertain fortnight as regulator sets out new timetable

Germany’s new sports betting licensees must provide a full implementation plan for restrictive licence terms and sports betting limits within two weeks of receiving a licence from the regulator, EGR has learned. This includes confirmation of how individual operators might impose the new limits, which will apply to all licensees across the German sports betting market. Only when operators have received feedback on the plans from the regulator will they know whether a phased implementation timeframe will be used or if they will be required to implement all standards with effect from a specific date. Under new terms contained within the licences, operators must add a wagering limit of €1,000 (£900) per month that can be increased to €10,000 (£9,000) subject to certain criteria being met, as well as specific loss limits onto all German-licensed sports betting sites in their portfolio. This limit can be extended even further to €30,000 (£27,000) for the 1% of customers who are subject to enhanced due diligence checks. In addition, all bettors will be subject to deposit limits until customer verification processes are complete, with annual bonuses per customer limited to a maximum of €100. Operators must also commit to adding several additional responsibility requirements as part of their licences. The operator-centric implementation model represents a significant departure from the phased tolerance policy being used for online casino gaming, where operators must enact certain changes by a specific point in order to qualify for licences. GVC became one of the first recipients of the new German sports betting licences last week when the Darmstadt Regional Council awarded four licences to its bwin, Ladbrokes, Sportingbet and Gamebookers brands. The operator now has until 23 October to submit its plan to regulators, with all subsequent licensees being subject to a two-week deadline. Speaking exclusively to EGR, GVC head of regulatory affairs David Foster confirmed the presence of the requirement, revealing that the FTSE 100 operator is working with German regulators on a plan. “There are a number of licensing conditions that have only just been clarified upon granting of the licence so we will work in accordance with our implementation plan (once finalised) to achieve compliance with these conditions,” Foster explained. “We welcome the clarity that the granting of licences brings after a long period of uncertainty. “Our focus is now on operating in a fully compliant manner in the regulated German market,” the GVC regulatory affairs head added. Fellow operators bet365, Tipico and BetVictor also received approval as part of Friday’s first 15 licence awards, with more expected to be added over the coming weeks. EGR has learned that international betting firms including Flutter, William Hill, Betsson Group, Kindred and 888 have also made applications to the Darmstadt Regional Council for licences. Speaking about the impact of these new licence requirements on operators entering the regulated market, 888 CEO Itai Pazner claimed they would have a negative impact on the market in the short term. “After a while, the market will stabilise and the operators will learn how to operate under those new guidelines,” said Pazner. “I think there will be a good opportunity to create growth out of the demand for products by German sports bettors. “Digitalisation and the fact that people are shifting more towards online services undoubtedly exists in Germany, just as it has done in other European jurisdictions and Germany has been a successful market for many operators over the years. “The fact that they will be able to operate with a higher level of certainty, with clear instructions and albeit stricter guidelines, represents an opportunity not for the short, but for the medium and long-term operators that will participate in that market,” Pazner concluded.