Blank Space for Casinos on Germany’s Whitelist Raises Questions

Following the approval of Germany’s Third State Treaty relating to online gambling, the country’s federal state of Sachsen-Anhalt releases a whitelist of approved operators.

The list includes three blank pages intended for licensed online casino platforms. It appears they approved no online slots or poker providers. It is yet to be established whether they received any applications in this segment.

Germany published a state treaty (GlüNeuRSTv) in July this year, where it revealed that online casino games would become legal and regulated in the EU country. The operation of online table games would remain a monopoly owned by state lotteries and land-based casinos.

 Sportsbooks Make the Cut

The whitelist mentions 35 approved sports betting providers that received licenses to provide online services to punters in the eastern Bündeslander. Bwin(an Entain brand), four subsidiaries of Tipico, Bet365, Tipwin, and Cashpoint from Gauselmann Group are all among the well-known sportsbooks to earn a German license. Some new kids on the block included on the list are Chillybet brand - Chilling Cheetah, and Mybet.de - operated by Ruleo.

German gambling regulations, as set out in the treaties, have received severe backlash from gambling authorities who label it as “too restrictive”. Examples of some of the rigid regulations for sport betting operators is the fact that no live streaming may take place on sportsbook sites, a limit applies to in-play markets, and there must be a five-minute delay when players switch from one website to another.

 Where are Slots and Poker?

Although the published whitelist includes no slot or poker licensees, Glücksspielstaatsvertrag 2021, includes regulations of the two variations of online gambling. The treaty clearly states that the country discontinues prohibition of online casinos, and the providers thereof would be subject to certain restrictions when operating in Germany.

Restrictions for online slot games include a wager limit of €1 per spin, no autoplay option may be available, nor may providers offer demo/free games. Players need to be limited to a monthly spend cap of €1,000 across a brand and a “panic button” for self-exclusion must be visible at all times.

Under the Treaty’s responsible gambling regulations, all products need to include a cooling-off option where players can take a 5-minute break to assess whether they should call it a day. 

The regulator approved a policy on 15 October 2020 of transitional tolerance towards unlicensed providers during the interim period. This would allow operators to engage German patrons with the condition that they follow all current license regulations. Any breach in these regulations during the interim period would cause the regulator to revoke a license application.

 Tax Expectations

One regulation that receives heavy backlash is the 5.3% tax on turnover, approved by the German legislature, the Bundestag. The German Free Democratic Party and Alternative für Deutschland opposed the regulation, to no avail.

Deutsche Sportwettenverband (DSWV), argued that the tax rate would “jeopardise the success of the new gambling regulation in Germany.”

The European Gaming and Betting Association (EGBA) and Der Deutsche Sportwettenverband (DVSW) expressed their concern and filed a complaint. The associations argue that the tax is illegal state aid, and they consider it a clear indicator of the country favouring land-based casinos.

 In Conclusion

The decision to regulate its online gambling market was an impressive feat for the EU country. The absence of licensed casino providers on the newly published whitelist beckons the question of how successful Germany’s restrictive regulations will be.