Gambling Groans Under German Policy Restrictions

While land-based gambling in Germany is relatively liberal, players find themselves heavily stunted when it comes to online casinos. 

You may be allowed to play the lottery online and, more recently, been allowed to bet on sports and horse races, but online casino games are still a grey area from a legal perspective. 

Maarten Haijer, the Secretary General of the European Gaming and Betting Association (EGBA), has urged the German government to address this urgently to prevent further hindrances to the gambling market. 

 What Is Legal? 

The German government has ruled that casinos and lotteries can be publicly or privately owned. This is fairly unique when it comes to international standards.  

More recently, sports betting is available through private bookmakers, but also through the lottery. Land-based casinos and slot halls are located all over the country and are frequented by many. 

 Policy Problems 

Current policy measures are highly prescriptive and filled with restrictions that are not led by scientific evidence.  

Given the suggested restrictions on player accounts with regard to time spent playing online and the size of their deposits to which products will be on offer, players are sure to go elsewhere in order to enjoy greater freedom and range offered by offshore, and often unregulated, casinos. 

 Sustainable Solution 

A solution would be to license good quality online German casinos that will appeal to both the local and overseas markets using these 3 essential ingredients provided by EGBA: 

Choice and Value: Customers look for a wide range of games that offer high value of play. Due to the fact that gambling is behaviour led, players will shop around for their favourite brands and products that have the most competitive odds or bonuses. 

Regulatory Framework: Legislators can set a high level of consumer protection for players. Once a clear and transparent licensing process is implemented, operators have an understanding of rules and guidelines and this leads to the building of healthy relationships with their clients. 

Profitable Partnership: If the government sets the licensing fees or taxes too high, this will prohibit companies from entering or remaining in business. Support from the government will encourage a growth in the market that will lead to sustainable tax revenues and a wide range of options for customers to choose from. 

Haijer commented on the situation saying: 

“Having a functioning market authority is important for any sector, not least for a highly regulated sector like online gambling. It is indispensable to have one central authority which will interpret, apply and enforce the rules in a consistent and fair manner. Licensed companies need to be able to communicate with the authorities about their license and its requirements, and for this, a centralised authority is key.” 

German authorities will need to make changes as quickly as possible in order to keep both players and operators happy, but as of yet, there is no timeline available.