Casino Association calls for stricter controls in German iGaming

The German Casino Association, Deutsche Spielbankenverband (DSbV), has demanded that lawmakers move to block payments to unlicensed online operators when it comes to transacting for the purposes of playing games of chance in the country.

Payment Problems

Pre-empting the already troublesome iGaming gag that is due to come into effect towards the middle of 2021, the DSbV’s CEO, Otto Wulferding, has made his ire known:

“Online casinos without a German license are evading the regulatory framework in Germany. They do not meet the requirements that apply to licensed casinos. This means that the guest can carry out their bets and thus deposits and withdrawals safely and reliably.”

Given the news that German payment processor, WireCard has just gone bust with between $2 million and $3 million missing despite multiple warnings to the government, Wulferding pointed at banks claiming that they aided and abetted illegal operators. Wulferding commented:

“Wirecard, the topic of monetary transactions for companies such as online casinos should be high on the agenda.”

Ultimately, Wulferding feels that it is up to payment processors to tow the line and block payments to illegal operators for the sake of protecting the legal gaming industry in Germany.

While land-based gambling and online casinos can work together when well regulated, the lack of control in the unlicensed iGaming market has had “far-reaching consequences”. This is especially true given the number of times the deadline for clarity around this issue has been pushed back.

Short-Sighted Approach

Germany allows for each state to decide for themselves as to whether to legalise something. Schleswig-Holstein, for example, has been extremely receptive to online gaming operators, while the rest of the country has been more reserved.

The new iGaming laws are hoping to unify the approach for the most part, however, the current move is to put such stringent measures in place, that it strangles the online industry, making it impossible to operate. There is a distinct feeling that the land-based casino industry feels threatened by the iGaming market and are doing everything they can to prevent legal, licensed options from being made available in the country.

Research has shown that people who play online are often not the same people who visit brick and mortar casinos. There is, therefore, room for both options in the market without much of an impact made on existing establishments.

In fact, land-based casinos around the world are taking to offering online services to give their customers access to a convenient, omni-channel approach. These companies have thrived during the novel Coronavirus lockdown, while the rest of the industry has groaned under the pressure of remaining shut.

While there is clearly a great need for regulation on all aspects of online business in Germany, calling for such harsh restrictions isn’t the answer to ensuring sustainable business.

Embracing the comfort and convenience offered by online services is a far smarter approach, especially given how much the world has changed recently.