German Regulation Comes Under Fire—From a German Trade Association

A trade group in Germany is taking issue with the long-awaited regulation model by claiming that it is insufficient.

Black Market Concerns

The exact concern emanates from the German sports association DSWV being “not fully convinced” that currently proposed online gambling regulations will succeed in preventing black market play.

The New Treaty

Set to take effect in July 2021 onwards, the 16 German state agreement for a new gambling treaty to regulate Germany's online gambling market lifted the ongoing online casino prohibition and allowed for online slots and poker games for an unlimited number of sports betting providers.

Remaining Measures

Measures that will remain in place include a €1 ($1.18) stake limits on virtual slot machines; limits on the in-play sports betting market; and prohibitions on internet advertisement between 6am and 9pm.

More Change Called For

But DSWV managing director Luka Andric has already told Gambling Insider some elements require further amending by next July, calling the current proposal “restrictive” while overall reminding:

“Considering Germany’s population size and its economic standing it will always be an important market and it is positive that this market is finally regulated.”

Sustainability Issue

Andric further characterised the sustainability of the market as dependent on “whether the authorities will be able to effectively block non licence holders from offering their products to German customers.”

Channel Challenges

Andric expressed lingering doubt about the ability of operators to channel consumers towards licensed operators, and claims that this will likely necessitate more rapid amendments to the current model.

Impatience Abounds

The Andric opinion is a thorn in the side of many stakeholders who have waited so long for the German regulation model to come to fruition; and was exacerbated by a sports betting legal snafu which arose when the Darmstadt Administrative court halted their licensing process in April.

Eagerness Understood

Andric added that he had sympathy for the dismay of the operators, saying it was obviously “a matter of frustration for our members who spent considerable amounts of time and effort in preparing licence applications.”

Outlook

The pragmatism of a stakeholder in favor of regulation is a clear indicator of potential flaws in the new German regulation model which will likely need ironing--better sooner rather than later.