Germany’s new regulations will finally allow online casino licensing in 2021
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The new Interstate Treaty on Gambling will come into force on July 1, 2021. It will allow licenses to offer online casino games across the entire country for the first time. The current regulations are too restrictive for some business owners. However, Germany offers a tempting prospect for start-ups and established companies. Slotegrator's analyst explains what aspects of iGaming business it covers. He also provides with a more detailed overview of the legislation and licensing process.
The new law recognizes four betting products: online casino table games, virtual slots, online poker, and sports betting. Each state can decide whether to have a monopoly on casino games like roulette and baccarat or to issue licenses. The number of licenses available will correspond to the number. licenses for sportsbook operators will still be issued, but they will have to follow new restrictions on in-play betting and they are subject to a 5% turnover tax. Central authority for licensing and regulation has not yet been formed. Online slot games must be licensed by the official regulator.
The new law has a series of player safety measures in place. It aims to protect vulnerable players, prevent underage gambling and combating problem gambling. Players register on a website for the first time and they must set a monthly deposit limit of €1000. There is a €1-per-spin bet limit on slot machines and a 5-second wait period between spins. Operators cannot offer both casino games and sports betting from the same domain. Cross-selling will be prohibited. The Interstate Treaty on Gambling will have dramatic effects on gambling advertising and affiliate marketing.
Transition period for online gambling was approved on September 9, 2020. It will begin on October 15 and end on July 2021. Operators who were not in compliance during the transition period would be ineligible for a license. The transition was criticized as operators were left only two weeks to become fully compliant. The use of the word “casino” for the purposes of marketing online casinos is banned.
Maarten Haijer is the Secretary General of the European Gaming and Betting Association. He is critical of upcoming regulations that will limit the ability of licensed operators to meet the needs of their market. Austrian bookmaker Vierklee brought a lawsuit to the German courts in April. The lawsuit was eventually overruled in October. 15 sports betting licenses were immediately issued by the Darmstadt Council in the state of Hesse. Germany's gambling market could be worth as much as €3.3 billion by 2024. Several international operators have already snapped up sports betters' licenses.
Slotegrator is a Turnkey platform that has all the features operators need for a successful start. It also provides a technical framework and comes with every tool needed for compliance.
