GVC requests phased introduction of German online casino ‘tolerance’ rules

GVC has voiced its support for the phased introduction of transitional regulations to govern the German online casino market as it becomes a regulated vertical in July 2021. The calls come after four of the 16 German states (Lander) proposed the introduction of transitional regulations for online casino operators coming into force on 15 October. States submitting proposals include Berlin, Hamburg, North Rhine Westphalia and Lower Saxony. It is understood they have already been passed to the remaining 12 German states for review and approval. These proposals are designed to cover the period between 15 October and 1 July 2021, when the new German Interstate Treaty (IST) comes into effect. Proposals include a ‘tolerance-style’ system for online casino, poker and slots games over the transitional period designed to put in place the standards for operators which will eventually become part of the new regulated market rules. Full details of the specific regulations have not been made public as yet, with sources confirming that the final technical requirements have still to be agreed by the German states. However, it is understood that these could cover connection to a centralised database that would eventually allow the German online casino deposit limit to be enforced once the transition period ends as well as other consumer protection and responsible gambling standards. EGR understands that other tolerance-related rules would also be designed to ensure a speedy and smooth transition to the new market once the transition period ends. Speaking to EGR, GVC regulatory affairs chief Martin Lycka confirmed the FTSE 100 operator had proposed its own phased system for implementing the tolerance rules to German state authorities. Lycka suggested a phased approach would ensure that operators could implement them in time and would still allow the German authorities to proceed with opening the new regulated market in July 2021. “We presented the authorities with our own view of what could be successfully implemented by 15 October and what would not be immediately possible. We then proposed dates by which some of the other high-level proposals could be implemented,” the GVC regulatory chief explained.

According to Lycka, implementing the restrictions proposed by the four states would also have the effect of separating the serious operators from the non-serious operators. “There are certain requirements contained within the proposals which simply do not exist yet, for example monitoring the new deposit limits would have to be implemented via a third-party database which still has to be developed,” Lycka explained. “In some cases, it’s not as simple as just tweaking a few parts of an operator site, some of the proposals require significant work.” “We’re trying to give the authorities an understanding of how any final proposals would be implemented, in some cases they are interdependent of each other and cannot be carried out without other things being addressed,” he added. However, Lycka reaffirmed his prior-stated belief that the German IST itself was still non-compliant with EU law, highlighting the areas of deposit limits, advertising windows and other restrictions as being incompatible with supranational legislation. Germany’s IST is currently being reviewed by the European Commission (EC) to ensure it is compliant with EU law. Earlier this month, the three-month standstill period by which the EC is able to complete this review was extended to mid-September.