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Hessian State Threatens Rebellion Against German Regulation Progress

The German state of Hesse is threatening to break way from the other states over an iGaming regulation flap.

Too Slow, Germany

Dissatisfied with the pace of the well-known lugubrious German regulation process, where regulation has now been pushed back to 2021, Hesse state Minister of Interior Peter Beuth warned that the state is prepared to cease working towards the federal model if its calls for regulation continue to be ignored.

Hesse Leader Explain Plans

Hesse will otherwise move ahead with its Regional Council of Darmstadt processing federal sports betting licence applications from January 2020. The measure of urgency is designed to channel players in the state from unprotected illegal play:

“Only with a legal offering can we prevent players drifting towards the black market, and at the same time enforce the important goals of addiction prevention and he protection of minors.”

Hesse Demands

Beuth further clarified that more limitations would have to be removed for an effective market, to be developed on top of the the third amended federal State Treaty on Gambling, signed in March and expiring on June 30, 2021, with a commitment to agreeing on and implementing a new framework from that date onwards.

Hesse Model

Beuth reveals pointed out that Hesse has been developing a gambling regulatory model that makes “playing in the legal market attractive” according to a system that includes a central licensing and enforcement authority for the market and an enhanced self-exclusion system.

Hesse Adaptation

Meanwhile, Hesse moves ahead with its progressive legislation initiatives with an amendment to its state gambling laws to increase the share of tax revenue granted to support voluntary work for sports, education and youth initiatives in the state.

Beuth Issues Ultimatum

Beuth ultimately warned that the state would only continue to work towards the federal framework if such changes were accepted.

"If our other amendments remain unheeded, Hesse will have to introduce its own gambling laws,” he warned. “If necessary, we will create our own state legislation.”