Germany takes steps towards change in state treaty on gambling

Published on November 8, 2016 in Industry News

German casino regulationsA new era is dawning with more countries opting to legalise online gambling around the world. Germany is the most recent to review their online casino ban and scrap their betting licence cap for German casinos.  After scrapping the limit on the number of available licences, the Prime Ministers of all 16 German states have come together to change the country’s State Treaty on Gambling. There are also talks of an online casino regulation.
 

Gambling applications

Scrapping the licence limit will allow any operator that can comply with the licensing terms eligible for licensure.
 

“Applications will be judged on their quality rather than quantity.”

At the annual conference of ministers held in the state of Mecklenburg-Vorpommern earlier this month the decision was made. Germany can now also finally issue online sports betting licenses under the State Treaty.

The Ministers are also looking in to setting a loss limit of €1,000 per player but has called on regulatory bodies for additional proposals regarding this factor.
 

‘An important step forward’

Operator association, the Deutsche Sportwettenverband (DSWV) called this an important step forward and welcomed the progress. DSWV President, Mathias Dahms, says this agreement brings hope and further stated that the limitation in the number of concessions was unconstitutional and in violation of the European law. Dahms continued to say that legal certainty can be established with the introduction of a genuine authorisation system. He also welcomed the fact that the agreement represents a step towards change across Germany without any limitations or exclusions. 

Although Dahms was delighted by the unification of the Prime Ministers on this he pointed out that this is just one step and that the promises would have to be followed by real action to ensure an EU-compliant model.

One of the Treaty’s most faithful supporters, Deutsche Lotto und Totoblock (DLTB), praised the Prime Ministers’ decision and said that they welcome the change in sports betting regulations. Michael Heinrich, DLTB chair, said that this agreement will help stabilize the sports betting market as well as provide clarity about legal providers in the sports betting sector which is incredibly needed.

Country lawmakers are examining the regulatory frameworks of other countries in order to alter the current prohibition. While some, such as the DLTB, believe this is only to tighten the existing ban others such as the newly formed casino body, the Deutsche Online Casinoverband (DOCV) believe that this is a push towards legalising online casino gaming.

It might still take a while for changes to be made to the State Treaty as all proposed changes have to go through the country’s parliament ratification and notification process which could be dragged out until January 2018.