Driven by Sports Betting, Germany Reaches Full Regulation Treaty
Published February 24, 2020 by Lee R
Germany is set to regulate, with all parties involved more encouraged than not.
Rising sports betting consumption in Germany is setting the table for full iGaming regulation.
Sports Betting Rises
German trade body Deutsche Sportwettenverband (DSWV) revealed that the consumer spend on sports betting in Germany of approximately €9.3bn (£7.86bn/$10.16bn) represented a jump of 21% from the previous year.
DSWV Encouraged
Citing figures from the German Federal Ministry of Finance, the DSWV considered the year-on-year growth surprisingly encouraging in light of the fact that there was no major football tournament, and 2018 had the World Cup.
Tax Totals
The DSWV further indicated that operators paid a total of €500m in sports betting tax during the 12 months through to 31 December 2019.
DSWV President Reacts
DSWV President Mathias Dahms called sports betting “the center of society in Germany” and “a popular leisure activity” at this point.
New Treaty Breakthrough
Last month's State Treaty on Gambling establishes a new federal regulator for market licencing and enforcement.
New Model
The new model retains the monopoly structure for the German state lottery while more significantly lifting the online casino prohibition. Sports betting is already legal.
First Applications
The first round of applications is expected to draw 45, with the first permits due this spring.
State Responsibilities
Dahms is encouraged by the onus that the new Treaty puts on each of Germany's individual federal states to adapt their state licensing guidelines and enforce guidelines against unregulated activity.
Dahms identified the key challenge currently facing the states as preventing regulation from driving players to black market play, and distorting competition. In other words, the language for new guidelines has to be particularly user-friendly, and the drafters in each state need to pay particular attention to this new task in their adaptation processes and procedures.
Organisational Reactions
The DSWV expressed satisfaction at reaching agreement, while Dahms took issue with the current version's overly restrictive live betting, deposit limits and account access guidelines.
German lottery association Deutscher Lotto- und Totoblock was satisfied that the first guidelines retained the state lottery monopoly; the European Gaming and Betting Association called the Treaty a “positive development,” while recommending restrictions on live betting, advertising and account activity.
Outlook
The new Treaty in Germany, one of Europe's largest state economies, is overall a very significant step forward for the global industry.
