G
erman regulators have struggled for years to craft appropriate laws governing online gambling. Finally, in March of 2020, the new Interstate Treaty on Gambling was approved, which will go into effect in July 2021 and allow the licensing of online casinos. But what are the details of the law? Read below to find out.
The upcoming online casino regulations in Germany will be a sea change for the countrys gambling industry, bringing a massive new opportunity for both start-ups and established companies who want to expand into Europes biggest economy. The latest version of the German Interstate Treaty on Gambling, which will come into force on July 1, 2021, will allow licenses to offer online casino games across the entire country for the first time.
Gambling in Germany is regulated at the state and federal level. At the moment, land-based casinos, land-based and online sports betting, and horserace betting are all allowed, but online casino games are only allowed in the state of Schleswig-Holstein. States have a monopoly on the lottery, but can issue licenses to offer state lottery products.
While the new regulations finally allow licensed operators to offer online casino games, they do come with stipulations that some are calling overly restrictive when it comes to deposit limits, product offerings, and other industry aspects like advertising and affiliate marketing. However, Germany still offers a tempting prospect for online gambling business owners.
On March 12, 2020, the prime ministers of the various states of Germany approved the newest edition of the Interstate Treaty on Gambling, which will allow licensed operators to offer online slots, poker, and other casino games throughout the whole country. Operating a sportsbook had already previously been legalized.
The law recognizes four categories of betting products: online casino table games, virtual (online) slots, online poker, and sports betting. Virtual slots and poker will follow an open licensing model, whereas each state will be able to decide whether to have a monopoly on casino table games like roulette and baccarat or to issue licenses. The number of licenses available will correspond to the number of land-based casino license holders in that state.
Sports betting licenses will still be issued, but sportsbook operators will have to follow new restrictions on in-play betting; players will only be able to bet on the final result, the next goal or score, or a similar element of the game. Unlike slots, poker, and casino games, there is an unlimited number of sports betting licenses available. When first issued, licenses for sports betting, poker, and virtual slot machines will be valid for five years; online casino (table game) licenses will be valid for seven years.
To ensure uniformity across the country, different state regulators will be responsible for different issues. The regulator of North-Rhine Westphalia is responsible for lottery and sports betting advertising, sports betting licenses are the purview of the regulator of Hesse, and the regulator of Lower Saxony is responsible for payment blocking measures for illegal gambling that crosses state lines.
Online slot games must be licensed by the official regulator (as yet unformed) and significant changes to the game cannot be made without the regulators permission. Additionally, a new central authority will be established to issue licenses and ensure compliance. As the centralized authority for licensing and regulation has not yet been formed, licensing fees for online casino operators have not yet been announced. When it comes to taxation, Germanys Value Added Tax applies to online slots and casino games, and sports betting operators are subject to a 5% turnover tax.
Player protection
The new law has a series of player safety measures in place, with the aim of protecting vulnerable players, preventing underage gambling, and combating problem gambling. When players register on a website for the first time, they will be required to set a monthly deposit limit for themselves, which may not exceed 1000. If a player decides they want to raise their self-imposed limit, the change goes into effect seven days after the request is made. A request to lower a limit is granted immediately. In addition to the deposit limit, there will be a 1-per-spin bet limit on slot machines. Players must also be unable to access multiple gambling sites at the same time, and will be subject to a 5-second wait period between spins of an online slot machine.
Operators will not be permitted to offer both casino games and sports betting from the same domain unless there is an entirely separate area for each of them and cross-selling will be prohibited for example, they will not be able to advertise sports betting in their casino section. In order to combat problem gambling, a central database of excluded players will also be established.
Advertising and affiliates
The Interstate Treaty on Gambling will have dramatic effects on gambling advertising and affiliate marketing. Advertising for the gambling industry will face certain restrictions, and affiliate marketing payment models will have to be adjusted.
Advertising for sports betting will not be allowed during sporting events, similar to the UKGCs whistle-to-whistle ban in the UK. However, unlike the UK, sportsbooks operating in Germany will not be allowed to advertise during the run-up to the sporting event to be bet on. Advertisements for online casino, slot, and poker games will be prohibited between 6 a.m. and 9 p.m.
Revenue share payment models, the most common method of rewarding affiliates, will be forbidden. Operators will have to find other means to reward affiliates for directing high-quality traffic to their site, and cost-per-click and ost-per-acquisition will likely take the place of the revenue share model.
In anticipation of the upcoming changes and to provide a roadmap to licensing, a transitional regime was approved on September 9, 2020. During this period, operators could offer their services, providing they had proven to be in compliance with the upcoming regulations.
Operators who were not in compliance but continued to offer their services during the transition period would be ineligible for a license when they are offered in July 2021, and operators who were compliant during the transition period will have a track record proving their reliability. However, the amount of time operators had to prepare for the transition period was not very long; on October 1, it was announced that the transition period would begin on October 15.
By October 15, potential license applicants were expected to have removed roulette, baccarat, and other table games from their platforms. By December 15, operators are expected to have introduced a 1 betting limit on slots and a five-second waiting period between spins, both of which will be permanent fixtures of the law.
However, the rules of the transition period were heavily criticized, as operators were left only two weeks to become fully compliant. Also, during the transition period, advertisements are entirely banned. Further complicating player outreach, the use of the word casino for the purposes of marketing online gambling is banned forcing a number of affiliates with the word in their name to quickly rebrand.
The Secretary General of the European Gaming and Betting Association, Maarten Haijer, has harshly criticized the upcoming regulatory changes. In his opinion, the wagering and time limits, as well as continued restriction of products will severely limit the ability of licensed operators to meet the needs of the market, giving a leg up to black-market operators who arent subject to the same limitations.
In addition to the limitations that will be in place, objections have been raised to the licensing process itself. In April, Austrian bookmaker Vierklee brought a lawsuit to the German courts, alleging that the licensing process, in particular the aspects involving the Federal Council on Games of Chance (Glcksspielkollegium), lacked sufficient transparency. The lawsuit froze the licensing process until it was eventually overruled in October, at which time 15 sports betting licenses were immediately issued by the Darmstadt Council in the state of Hesse, Germanys sports betting regulator.
However, despite the criticism and the short preparation time for the transition period, Germany remains a highly desirable target market. The German gambling market could be worth as much as 3.3 billion by 2024, making Europes biggest economy a worthwhile opportunity despite the deposit limits and other restrictions. Several large, international operators, such as GVC, have already snapped up sports betting licenses, with many more on the way.
If youre looking to start an online casino or create an online betting site facing the German market but dont know where to start, Slotegrator has everything you need to get going.
Among the opportunities for your business is a Turnkey platform that has all features operators need for a successful start or a White Label casino that not only provides a technical framework but also comes with every tool needed for compliance. Contact our managers to learn more about the opportunities for your business.
Read more:
Germanys new regulations will finally allow online casino licensing in 2021 - Yogonet International
- LCB Member Rewards Double Bill: SlotV and Frank Casino Get With the Programme - Latest Casino Bonuses [Last Updated On: June 15th, 2020] [Originally Added On: June 15th, 2020]
- Business The Long Con: Erik Bergman and the importance of charity - CalvinAyre.com [Last Updated On: June 15th, 2020] [Originally Added On: June 15th, 2020]
- Discover the Future of Gaming at CasinoBeats Malta Digital - Casino Beats [Last Updated On: June 15th, 2020] [Originally Added On: June 15th, 2020]
- Improving the relationship between operators and affiliates - iGaming Business [Last Updated On: June 15th, 2020] [Originally Added On: June 15th, 2020]
- Where Are They Now?: Forty years after pitching Quabbin to a title, Joe Orszulak is pitching in on the construction of Worcesters Polar Park - The... [Last Updated On: June 20th, 2020] [Originally Added On: June 20th, 2020]
- LAS VEGAS RE-LAUNCH OF THE STRIP, an important discussion at Sports Betting & Casino Summit North America 2020 - European Gaming Industry News [Last Updated On: June 20th, 2020] [Originally Added On: June 20th, 2020]
- Survey Finds 94% of Bingo and Casino Players Aware of Responsible Gambling Tools - BingoDaily [Last Updated On: June 25th, 2020] [Originally Added On: June 25th, 2020]
- Why affiliates must always remain on the front foot for compliance - Casino Beats [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- BestBitcoinCasino.com gives Online Casinos a voice with the launch of new 'Manage Casino' feature - CalvinAyre.com [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- Spearhead Studios Starts the Fall with The Launch of Book of the Kings Slot - Latest Casino Bonuses [Last Updated On: September 4th, 2020] [Originally Added On: September 4th, 2020]
- Game Revenue Casinos Add Red Tiger Games and Tether - Key To Casinos [Last Updated On: September 4th, 2020] [Originally Added On: September 4th, 2020]
- SBC Summit Barcelona - Digital to open with Sportradar and DraftKings executives' keynote - Yogonet International [Last Updated On: September 4th, 2020] [Originally Added On: September 4th, 2020]
- 'Operators who fail to invest in brand and user experience may fall behind' - Yogonet International [Last Updated On: September 4th, 2020] [Originally Added On: September 4th, 2020]
- 7StarsPartners: Streamers are one of the best ways to ensure entertainment - Casino Beats [Last Updated On: September 4th, 2020] [Originally Added On: September 4th, 2020]
- BetConstruct, EveryMatrix and Spearhead Studios Join Forces to Play the Game - Gambling Insider - In-depth Analysis for the Gaming Industry [Last Updated On: October 27th, 2020] [Originally Added On: October 27th, 2020]
- A general view on the current state of the Swedish market - Casino Beats [Last Updated On: October 27th, 2020] [Originally Added On: October 27th, 2020]
- GiG ready to expand media business with WSN registration in Tennessee - SBC Americas [Last Updated On: October 27th, 2020] [Originally Added On: October 27th, 2020]
- AC Milan Extends its Partnership with StarCasin.sport - European Gaming Industry News [Last Updated On: October 27th, 2020] [Originally Added On: October 27th, 2020]
- AretoNet Integrates with Dragonfish - European Gaming Industry News [Last Updated On: October 27th, 2020] [Originally Added On: October 27th, 2020]
- GVC Adds Senior Gaming Executives David Satz and Robert Hoskin to its Board - European Gaming Industry News [Last Updated On: October 27th, 2020] [Originally Added On: October 27th, 2020]
- King's 11. 2 more shortlists in the SBC Awards bring King Billy's total award tally to 11 - European Gaming Industry News [Last Updated On: October 27th, 2020] [Originally Added On: October 27th, 2020]
- Paysafe inks payments and marketing link-up with Wildwood Casino - Casino Beats [Last Updated On: January 15th, 2021] [Originally Added On: January 15th, 2021]
- 5 THINGS THAT MAKE CASINO HORSE A UNIQUE CASINO AFFILIATE - Island Echo [Last Updated On: January 23rd, 2021] [Originally Added On: January 23rd, 2021]
- Parkview Financial provides $100 million loan for redevelopment of Harrah's Reno Hotel and Casino to mixed-use project in downtown Reno, Nevada -... [Last Updated On: March 9th, 2021] [Originally Added On: March 9th, 2021]
- FanDuel, AGA 'Have a Game Plan' to Promote Responsible Sports Betting - Casino.Org News [Last Updated On: March 9th, 2021] [Originally Added On: March 9th, 2021]
- ICE 365 in partnership with iGB & iGB Affiliate - iGaming Business [Last Updated On: March 9th, 2021] [Originally Added On: March 9th, 2021]
- Oklahoma Bill Could Make Its Medical Weed Program Accessible to Texans - Dallas Observer [Last Updated On: March 18th, 2021] [Originally Added On: March 18th, 2021]
- Whats Next In Mobile NY Sports Betting Negotiation Between Cuomo, Legislators? - Legal Sports Report [Last Updated On: March 18th, 2021] [Originally Added On: March 18th, 2021]
- Apollo, Caesars, and Wall Street's 'Billionaire Brawl' for Control of a Gaming Empire - Institutional Investor [Last Updated On: March 18th, 2021] [Originally Added On: March 18th, 2021]
- Conscious Gaming appoints members to newly created advisory board - Casino Beats [Last Updated On: March 18th, 2021] [Originally Added On: March 18th, 2021]
- Blocklists - what affiliates need to know - AffiliateINSIDER [Last Updated On: March 18th, 2021] [Originally Added On: March 18th, 2021]
- NAMI MIAMI-DADE (NATIONAL ALLIANCE ON MENTAL ILLNESS ) TO HOST FIRST-EVER MENTAL HEALTH WALK IN THE COUNTY : SF STAT! - South Florida Hospital News [Last Updated On: March 31st, 2021] [Originally Added On: March 31st, 2021]
- Therese Hillman appointed as new board member at Better Collective - Gambling Insider - In-depth Analysis for the Gaming Industry [Last Updated On: March 31st, 2021] [Originally Added On: March 31st, 2021]
- New York-based Apollo Global Management Clears two Hurdles in the Acquisition of Great Canadian Gaming Corp. - West Island Blog [Last Updated On: April 6th, 2021] [Originally Added On: April 6th, 2021]
- ROGER TAYLOR: U.S. fund's acquisition of Great Canadian Gaming clears another hurdle - Cape Breton Post [Last Updated On: April 6th, 2021] [Originally Added On: April 6th, 2021]
- CogniGaming launches two new products to help connect casino operators and slot developers with affiliates and publishers - European Gaming Industry... [Last Updated On: April 6th, 2021] [Originally Added On: April 6th, 2021]
- Evolution of Additional Income Opportunities on the Internet Film Daily - Film Daily [Last Updated On: April 6th, 2021] [Originally Added On: April 6th, 2021]
- Tero Pivrinta: the realities of securing a US affiliate license - SBC Americas [Last Updated On: April 6th, 2021] [Originally Added On: April 6th, 2021]
- Daly delivery the new man at the top of Catena Media - iGaming Business [Last Updated On: April 15th, 2021] [Originally Added On: April 15th, 2021]
- What to expect from remote jobs in Cork? - Southern Star Newspaper [Last Updated On: April 15th, 2021] [Originally Added On: April 15th, 2021]
- Following the stream - iGaming Business [Last Updated On: April 15th, 2021] [Originally Added On: April 15th, 2021]
- Tiffany Gambla Joins The Slot Squad - PRNewswire - PRNewswire [Last Updated On: April 23rd, 2021] [Originally Added On: April 23rd, 2021]
- Is Canada rising to the challenge? Responding to calls for more effective financial crime prevention and enforcement - Lexology [Last Updated On: May 9th, 2021] [Originally Added On: May 9th, 2021]
- Culinary Union says Palms sale will not impact negotiations on behalf of workers - KTNV Las Vegas [Last Updated On: May 9th, 2021] [Originally Added On: May 9th, 2021]
- 'Runner Runner' review: Is this the casino movie of your dreams? Film Daily - Film Daily [Last Updated On: May 11th, 2021] [Originally Added On: May 11th, 2021]
- AffiliateCon Virtually Live returns with more content this Wednesday - Gambling Insider - In-depth Analysis for the Gaming Industry [Last Updated On: May 11th, 2021] [Originally Added On: May 11th, 2021]
- Slots Temple becomes member of the Responsible Affiliates in Gambling - The Indian Wire [Last Updated On: May 11th, 2021] [Originally Added On: May 11th, 2021]
- Slots Temple becomes newest member of the RAiG - Casino Beats [Last Updated On: May 16th, 2021] [Originally Added On: May 16th, 2021]
- New Uncasville Medical Center serves Mohegan tribal members, employees and the public - theday.com [Last Updated On: May 18th, 2021] [Originally Added On: May 18th, 2021]
- The AskGamblers Awards Finalists' Names Are in and the Voting Can Begin - European Gaming Industry News [Last Updated On: May 18th, 2021] [Originally Added On: May 18th, 2021]
- Reflex Gaming joins hands with First Look games to mark its expansion beyond the UK - Tunf News - Tunf.com News [Last Updated On: June 4th, 2021] [Originally Added On: June 4th, 2021]
- SBC Leaders: analyzing the limitless possibilities of US sports betting - SBC Americas [Last Updated On: June 4th, 2021] [Originally Added On: June 4th, 2021]
- SBC Summit Barcelona marks the return of large-scale industry events - Yogonet International [Last Updated On: June 4th, 2021] [Originally Added On: June 4th, 2021]
- SAGSE 2020 ranking recognizes over 70 companies and executives in the U.S. and Europe - Yogonet International [Last Updated On: June 4th, 2021] [Originally Added On: June 4th, 2021]
- Ohio Sports Betting Breaking Down Possible License Holders and Where the State Stands - The Action Network [Last Updated On: June 4th, 2021] [Originally Added On: June 4th, 2021]
- Useful tips that will help those who are new to online betting - The Bridge [Last Updated On: June 23rd, 2021] [Originally Added On: June 23rd, 2021]
- First Look to assess affiliate reviews with AI Sentiment Analysis tool - iGaming Business [Last Updated On: June 23rd, 2021] [Originally Added On: June 23rd, 2021]
- World Bareknuckle Champion Luis Palomino And Tyler Goodjohn Give Predictions For Their Highly-Anticipated Fight At BKFC18 - BroBible [Last Updated On: June 24th, 2021] [Originally Added On: June 24th, 2021]
- Is the Attitude of India towards Gambling Changing? - DU EXPRESS - DU Express [Last Updated On: June 24th, 2021] [Originally Added On: June 24th, 2021]
- Big West moving basketball tourney to new Vegas-area arena - Chron [Last Updated On: June 28th, 2021] [Originally Added On: June 28th, 2021]
- Playzido, Churchill Downs and 247Partners: recruitment round-up - Casino Beats [Last Updated On: June 28th, 2021] [Originally Added On: June 28th, 2021]
- Key Considerations for the Interstate Treaty on Gambling in Germany - AffiliateINSIDER [Last Updated On: June 28th, 2021] [Originally Added On: June 28th, 2021]
- Revealed: The winners of the Global Gaming Awards London 2021 - Gambling Insider - In-depth Analysis for the Gaming Industry [Last Updated On: June 28th, 2021] [Originally Added On: June 28th, 2021]
- PA PID and PAHBPA Revenue Sharing Dispute Referred to Court - GamblingNews.com [Last Updated On: June 28th, 2021] [Originally Added On: June 28th, 2021]
- Bill Cosby's sex assault conviction overturned by court - Reno Gazette Journal [Last Updated On: July 2nd, 2021] [Originally Added On: July 2nd, 2021]
- Making the most of digital transformation | Tech & innovation - iGaming Business [Last Updated On: July 2nd, 2021] [Originally Added On: July 2nd, 2021]
- GLI to Provide Expertise to Lotteries and Gaming Regulatory Board of Uganda - European Gaming Industry News [Last Updated On: July 2nd, 2021] [Originally Added On: July 2nd, 2021]
- Cities across US west ban Fourth of July fireworks amid wildfire fears - The Guardian [Last Updated On: July 5th, 2021] [Originally Added On: July 5th, 2021]
- Apollo Believed to Be Leading Way for William Hill non-US Assets - Casino.Org News [Last Updated On: July 5th, 2021] [Originally Added On: July 5th, 2021]
- Where to Watch the Las Vegas 4th of July Fireworks 2021 - Cond Nast Traveler [Last Updated On: July 5th, 2021] [Originally Added On: July 5th, 2021]
- EveryMatrix expands its offering in Europe via winmasters full migration - Yogonet International [Last Updated On: July 14th, 2021] [Originally Added On: July 14th, 2021]
- 'Milestone' iGB Live! demand as registrations rise to 109% of 2019 figure - iGaming Business [Last Updated On: July 16th, 2021] [Originally Added On: July 16th, 2021]
- Matrix iGaming joins EveryMatrix RGS solution European Gaming Industry News - European Gaming Industry News [Last Updated On: July 21st, 2021] [Originally Added On: July 21st, 2021]
- 2021 WSOP To Be Last Tournament In Rio Casino | My Blog - Tight Poker [Last Updated On: July 21st, 2021] [Originally Added On: July 21st, 2021]
- Crypto Millions Lotto Review: Breakdown of the World's Largest Bitcoin Lottery Site - Blockonomi [Last Updated On: August 2nd, 2021] [Originally Added On: August 2nd, 2021]
- Las Vegas father of 5 dies at 39, texted I should have gotten the damn vaccine - Boston.com [Last Updated On: August 2nd, 2021] [Originally Added On: August 2nd, 2021]
- Toronto's Playmaker Capital bets it can win big by driving sports fans to gambling websites - The Globe and Mail [Last Updated On: August 2nd, 2021] [Originally Added On: August 2nd, 2021]
- Washington Sports Betting Takes Another Key Launch Step - The Action Network [Last Updated On: August 2nd, 2021] [Originally Added On: August 2nd, 2021]
- Online Casino Affiliate Program | 50% Revenue Share ... [Last Updated On: August 2nd, 2021] [Originally Added On: August 2nd, 2021]
- ZK International's Portfolio Company, Maximbet, Enters Partnership With White Mountain Apache Tribe In Pursuit Of Online Sports Betting License In... [Last Updated On: August 14th, 2021] [Originally Added On: August 14th, 2021]