German states agree to country-wide gambling regulation reform
Online casino and poker to get the green light but strict monthly deposit limits will be imposed
Germany’s 16 federal states today agreed to a new treaty allowing operators to offer online casino and poker across the entire country.
The two online verticals were previously prohibited in Germany but are now likely to be regulated if the fourth version of the Interstate Treaty comes into force in July 2021 as planned.
However, sports betting will be subject to in-play restrictions while monthly deposit limits across all verticals could be set at €1,000 per month.
A new tax regime is also likely to be introduced, although no specifics have yet been given.
Regulus Partners analyst Paul Leyland said: “Given Germany’s fiscal form, hoping for anything less than 30% would be ‘optimistic’ in our view.”
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The new treaty, which will replace interim existing legislation agreed in 2020, is still to be ratified by state parliaments but could be approved as soon as March.
According to the government of Schleswig-Holstein – the only state to currently offer online gambling – the new treaty should ensure that gambling is channelled into the regulated market.
The state is hopeful that the fourth Interstate Treaty will create a “suitable alternative” to illegal gambling and should help to “counteract the spread” of unauthorised gambling.
On Wednesday, State Chancellor Dirk Schrödter described the agreement as a “really good result”.
A central regulatory authority for the federal states is also in the pipeline, with Schleswig-Holstein, Hesse and North Rhine-Westphalia the current frontrunners.
William Hill shut down its Mr Green sportsbook in Germany this week as operators are expected to choose one brand per vertical under the new legislation.
Bwin-owner GVC Holdings provided the following statement to EGR Intel: “We welcome the news that the German states have reached a compromise on the shape of the future online gambling regulation that will allow for regulation of all online gambling products, including online casino, from July 2021 onwards.
“The latest draft of the future State Treaty on Gambling addresses a number of outstanding regulatory issues and provides for more clarity and certainty than the existing regulation.
“GVC intends to continue working with the German authorities, in particular in the framework of the upcoming public consultation, in a bid to further optimise several parts of the regulatory proposal to ensure future licensed operators will be able deliver a safe and responsible customer proposition which is attractive to consumers and commercially viable.”