A Liberalised German Market Shines Brightly on the Horizon
Published April 3, 2020 by Lee R
The long-awaited liberalisation of the German iGaming regulation model is truly something to look forward to.
Following the well-covered recent treat approval, the new regulations are coming to light for the expansion of the liberalised market in Germany.
The Legislative Process
Introduced to the floor in January, the German parliament has already approved the regulations set to come into force from July 2021. The GlüNeuRStv now requires only format ratification by each of the 16 federal state parliaments before submission to the European Commission for approval as the last step before the new regulations take effect.
New Measures
The new regulations will legalize both online poker and casino, to join sports betting.
Players will remain subjected to a €1,000 monthly deposit, with in-play betting still limited to the final result and next goalscorer.
A proposed advertising blackout will still apply between 6am and 9pm each day, when operators are prohibited from promoting themselves on broadcast media.
Further changes will include a limit on online slots of a €1 per spin stake limit.
Taking Effect
The new legislation will replace the current temporary laws, which are effective until next July. These were introduced in January 2020.
Licensing Progress
While the state Hesse responsible for accepting licence applications has yet to hand out the first one, Hesse did acknowledge that 30 applications had already been received with 20 more operators indicating intent to apply.
Regulation Body
The regulations call for a new gambling regulator in the state of Saxony-Anhalt, with the districts of Nordrhein-Westfalen; Schleswig-Holstein; Baden-Württemberg and Hesse all expressing interest in hosting.
The full name of the new regulatory body will be the Glücksspielneuregulierungstaatsvertrag (GlüNeuRStv). The GlüNeuRStv will be in charged of issuing of licenses, while working with local state bodies.
Discerning Reaction
These landmark regulations nevertheless were met with some consternation by leading gambling interests in the country, including German Sports Betting Association (DSWV) President Mathias Dahms.
DSWV President Speaks
As one of Germany's leading gambling proponents, President Dahms acknowledged the treaty as a good “first step towards modern, market-compliant gaming regulation” while finding fault with a number of “structural undesirable developments...which will pose challenges for future gaming regulations” the first time out.
Areas of Improvement
Dahms overall characterised the new guidelines as rigid, while expressing doubt that those rules could sufficiently address leading iGaming issues such as “player protection” and “squeezing the black market,” mainly because the low bet limits could still compel German players to seek international unregulated sites with higher bet limits.
Constructive Reactions
Dahms views may be most productively viewed as a road map for subsequent adaptation.
Outlook
Considering a cooperative effort between gaming association in Germany and a regulatory authority were not even possible until the new treaty, the overarching the new era of gaming in Germany, even in imperfect form, has to be considered a welcome sight, as will the smoothing of the growing pains once this inconvenient but necessary season passes.
