Germany rubber-stamps transitional operating period

Germany has agreed to a transitional period for online gambling, including for online casino, permitting operators to continue in the market should they comply with new-look legislation. The proposals, now rubber-stamped by the 16 federal states, are designed to cover the period between 15 October 2020 and 1 July 2021, when the new Interstate Treaty (IST) comes into force. The news means German-facing operators will not be required to turn off their offering in the interim, or face a cooling-off period before applying for an official licence, as is the case in the neighbouring Netherlands. Operators will not be prosecuted if they can meet the new restrictions, which include a €1 stake limit on online slots and an outright ban on online roulette and blackjack. The tentative legislation, currently at notification procedure level with the EU, also hinted at a new tax regime, as well as a new, nationwide gambling regulator being set up in Saxony-Anhalt. Gambling brands operating in Germany have until 15 October to comply with the draft regulations or they could have their licence applications rejected when the legalised market goes live in 2021. This is likely to cause headaches for compliance departments in the short term at least. Firms that continue to operate in Germany without complying with the new regulations could be served with prohibition orders by individual German states. Complying with the new rules is likely to lead to revenue losses for many operators, and also black market leakage, as some consumers could seek out a less restrictive offering. GVC – a market leader in Germany with its bwin brand – voiced its support in August for the phased introduction of transitional regulations. “We presented the authorities with our own view of what could be successfully implemented by 15 October and what would not be immediately possible,” said GVC regulatory affairs chief Martin Lycka. “We then proposed dates by which some of the other high-level proposals could be implemented.” Some operators, including bet365, pre-empted regulatory change by switching off their online casino offering in Germany to benefit their legal licence applications. Germany’s online casino market could be worth €5bn by 2024, according to an August report published by European telecommunications group advisory Goldmedia.