Eleven Down: Only Two States Left for Full Ratification of Germany's State Treaty iGaming ModelPublished April 29, 2021 by Lee R
The 11th of 13 states needed to ratify German regulation has approved of the State Treaty.
With the market due to open later in the year, the German states are moving forward with the ratification process to bring iGaming into being across the entire federation of Germany.
The Saarland state has now ratified the legislation: the State Treaty on Gaming in Germany Der Glücksspielneuregulierungstaatsverag (GlüNeuRStv) unanimously passed in the Saarland's state parliament second reading.
The historic approval by the German government was originally realised in March 2020, setting a target date of opening the jurisdiction to legal online poker and casino games starting July 1 2021.
This launched a ratification process, as the State Treaty moves through each individual German state for necessary approval before iGaming can be implemented in the German Federation.
The Vote Count
The Saarland vote saw governing party Christian Democratic Union (CDU) along with Social Democratic Party (SPD) voting in favor, supported by Die Linke, with the only abstinence coming from Alternativ für Deutschland (AfD).
Latest State Approvals
Article 3 of the State Treaty calls for ratification from each of Germany's 13 state governments. Saarland state's ratification comes on the heels of approval from state
Parliaments in Schleswig-Holstein and Sachsen last month.
This leaves two states left to complete the ratification process: Nordrhein-Westfalen and Sachsen Anhalt, where Germany's new regulator will be headquartered.
Application of Legislation
License for sports betting and online casino play are applicable in the State Treaty, with the government maintaining control of lotteries.
The original model proposed in Germany was the Schleswig-Holstein model; the updated GlüNeuRStv model has stricter controls for online casinos.
Restrictions include capping slots at €1 per spin, while maintaining a five-second average spin speed.
As for table games, they will be offered separately, with the individual states retaining the final decision-making authority on whether or not to maintain their respective lottery monopolies.
A turnover tax of 5.3% will be attached to online slots and poker.
Despite the more stringent measures of the second version of the State Treaty, the benefits of legalising iGaming in Europe's largest economy is bound to benefit operators and EU member states alike, with the historic significance of the moment giving way to a plethora of visible and unforeseen benefits to iGaming stakeholders.