German Lawmakers Sanction Controversial Gambling Regulations

Germany has finally permitted a new set of heavily debated gambling laws in a meeting that was held in Berlin by all the 16 heads of states in the country. The new laws are expected to take effect come 1st July 2021. This legislation dubbed GlüNeuRStv, specifically green-lights online casino games and online poker, expanding regulated online gambling beyond online sports betting alone.

Betting on sports has only been legal in Germany for less than three months now, since 1st January 2020. This was after a tentative sports betting regulatory administration was laid out in the third amendment of the State Treaty on Gambling.  The amendments to include online casino and poker games in the law must however be ratified by all the German state parliaments and will become effective only after the European Commission okays them.

When it comes to industry oversight, on the other hand, a new regulatory body will be formed under the GlüNeuRStv and will be operating from Sachsen-Anhalt State. Currently, operators interested in offering sports betting services are expected to acquire a license in the Hesse State from the Darmstadt Regional Council.

Strict Rules for Operators and Gamblers

Just as many industry proponents had expected, no noticeable adjustments were made to the draft proposals that were recently made public. Thus, while all forms of interactive gambling ranging from sports to poker and casino games such as slots will be authorized, gambling in Germany will be nothing but strict.

For instance, sports betting markets will only include the final outcome of the games and the next scorer while the game goes on. Germans locals will, unfortunately, miss out on other lucrative options that are often available across the globe such as over/under and in-play.

All online slots in German casinos will only have a €1 per spin limit while online gamblers are restricted to a spending limit of up to €1,000 per month on deposits. These limits not only apply to players only but are also applicable to operators as well. Online gambling-related advertisements, on the other hand, are restricted to air between 6:00 am and 9:00 pm.

Furthermore, table games will be offered separately from slot games. And just when you thought things couldn't get any crazier for German locals, auto-play or Jackpot features are also restricted in the new law.

The states, on the other hand, have been handed the power to choose whether they want the lottery to monopolize their sectors or not. And at the same time, they have also been given the power to decide whether they want table games to be offered within their state lines or not.

The Licensing Process

Until these new rules are enforced, the sports betting State Treaty, enacted in January 2020 will stay in effect until 30th June 2021.

The body that's currently in charge of sports betting licenses is headquartered in Hesse but, it has yet to permit any sports operators. Based on recent reports, 30 applications have been received by the body so far, and 20 more operators are planning to submit their applications.

Lawmakers have also warned that swift action will be taken against unlicensed gambling operators that target German residents.  100 such operators have already received warnings, and as a result, 10 of them had to withdraw from the German market with immediate effect.