GERMANY – States agree transition period for igaming operations
The transition period aims to end a period of uncertainty for the gambling industry
German lawmakers are to permit online casino games in Germany to continue offering online slots, poker and sports betting provided they work to ensure they comply with the terms of the Glücksspielneuregulierungstaatsvertrag (GlüneuRStV) by 15 October, the regulatory framework due to come into force from 1 July 2021.
According to the agreement by this date online gaming operators will be required to comply with the player protection guidelines and addiction prevention measures set out in the GlüNeuRStV. At this point operators will also be expected to adhere to the terms of the 2021 legislation for each vertical on offer.
This means that for sports betting, operators will be required to limit in-play betting markets to next goal scorer and final results, while for online slots a €1 per spin stake limit must be in place. Also, online table games, such as blackjack and roulette, will not be permitted in the transition period. These products must already be offered separately from online slots, and states may choose to grant their lotteries a monopoly for the vertical.
While a blanket €1,000 monthly spending limit will be applied for all players, users may also apply to have this raised up €10,000. This will only be permitted provided a maximum bet amount is set for the player, and a special loss limit, which will prevent them from losing more than 20% of their maximum spend, must be imposed.
Each operator will also be allowed to grant a small number of players a spending cap of between €10,000 and €30,000. This may only be applied to a maximum of 1% of an operator’s total registered players, and the individual must be at least 21 years of age. Enhanced due diligence and monitoring must also be carried out.
Any breach of these terms will see the temporary authorisation withdrawn and would most likely see the operator blocked from securing a licence from July next year.
During the transition period, enforcement action against illegal operators will also be stepped up. These efforts will target sportsbook operators that did not apply for a licence under the third amendment State Treaty and those that fail to implement the controls for online slots and poker; and those that continue to offer table games. For these offenders, Niedersachsen will continue to coordinate efforts to block payments.
These conditions, however, will not apply in Schleswig-Holstein, which has adopted a more liberal framework in which all products are permitted and subject to a 20% gross revenue tax. That model will still be replaced by the GlüNeuRStV from July next year.
The transition period has been under discussion for a number of months. It emerged in July that Nordrhein-Westfalen, Berlin, Hamburg and Bavaria were playing leading roles in these talks, and while a conclusion was ultimately agreed upon, a number of states expressed serious misgivings. The transition period aims to end a period of uncertainty for the gambling industry, after efforts to finally implement the third amended State Treaty on Gambling for 18 months ahead of the GlüNeuRStV coming into force failed.
