Germany submits amended IST to European Commission
Commission will now review legislation to check compatibility with EU laws
The German government has submitted the amended interstate treaty on gambling (IST) to the European Commission for approval.
European regulators will now review the legislation to establish whether it conflicts with the Treaty on the Functioning of the European Union (TFEU). If no such conflict is found, Germany will be free to proceed with the licensing of sports betting operators.
The new IST provides for the creation of a licensed and regulated German sports betting market, tasking German states with agreeing a regulatory framework by 2021. Should this not occur, the treaty allows for the period to be extended to 2024.
A key part of the new agreement was the removal the pre-existing 20-licence cap on sports betting licences employed during the so-called ‘experimental’ phase. This coupled with Schleswig-Holstein’s extension of its existing online gaming licences to 2021 paved the way for passage of the bill.
However, if the EU review uncovers any potential conflicts then the Commission will ask for amendments to be made, throwing the prospect of a licenced sports regime by 2021 into doubt.
In its initial impact assessment of the new legislation, the European Commission said the new treaty will “provide clarity for providers and participating third parties (payment service providers, media, sports clubs and associations)”.
Addressing the potential for new market entrants, the Commission said that this would increase the potential to bring black-market operators into the regulated market, and highlighted the treaty as giving German authorities more powers to “comprehensively prohibit illegal offers”, leading to greater market stability.
Legislators from all sixteen German states approved initial passage of the treaty in March following lengthy debates in the German parliament (Lander).
Previous amendments to the treaty had been deadlocked for many years, following a lack of consensus between the states which saw Schleswig-Holstein, Hesse and North Rhinewestphalia press ahead with their own licensing regimes.