2020 is an important year for Germany's gambling market, as the country prepares to implement online gambling regulations from 2021.Eight years ago it was announced that this country's gambling industry would undergo a restructuring, as the legal frameworks awarded to the iGaming market did not successfully address the public welfare or favor other market sectors. This year German lawmakers have finalized the details that were missing for the completion of a viable regulatory framework.
In January of this year, the 16 federal states of Germany agreed to a new federal gambling law that will see the authorization and licensing of online poker and casino services from July 1, 2021, as part of the new German Interstate Treaty on Gambling. Nordic casinos and developers have started a transition phase, in which they must adapt, as well as their games and other iGaming solutions, to the new regulatory framework imposed by legislation.
Adhering to the new regulations before the treaty takes effect will help operators avoid potential prosecution and ensure they are ready to apply for an official license. All companies that have wanted to continue offering services to the German market have had a grace period until October 15 to ensure that they comply with the terms of this new legal framework.
Germany is enacting the new largest regulation of its iGaming and sports betting market. The re-regulation of the market would allow operators such as Bitcasino, 1xBit and FortuneJack to seek and consolidate their presence in the country.
All of these new regulations come as Germany moves forward to promote safer gambling and clamp down on the number of people suffering from gambling-related addictions.
New laws and regulations
This new treaty will introduce a tax regime for online gambling, allow for licensing of online casinos and establish a nationwide gambling regulator much like the UK Gaming Commission.Probably the most relevant change concerns the liberalization of the online gambling market through a licensing process.
The new regulations that must be followed by online gambling operators include a rule that all operators must pay a security deposit based on the company's monthly billing. Small operators are expected to pay a minimum of € 5 million, while larger companies may have to pay up to € 50 million.
Another, of the new rules, include allowing operators to offer different casino or sports betting services on the same domain. However, they must divide the services so that they are independent and separate from each other.
Operators must verify client details and impose deposit limits on clients, preventing them from depositing more than € 1,000 per month in all casinos owned by the same operator. Online slots must have a five second interval between spins and have a maximum bet of € 1 per spin. Individual players will be able to request a monthly spending limit of € 10,000, but their cases will be scrutinized by gambling companies to determine if players are creditworthy to spend that much on casino games.
Blackjack and roulette games will be allowed to be loaned to the country's player population during the grace period, but must be provided separately from online slots.
Failure to comply with any of the rules outlined in the new treaty would result in revocation of the license or a minimal fine.
Many gambling operators in Europe have warned that the new laws will have a negative impact on their profits. It remains to be seen what real impact these measures will have on the gambling market in this country.
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