Is Online Gambling Legal In Germany

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Germany’s relationship with online gambling has been in a grey area for quite a long time. It was largely illegal, except for about 20-something operators who had permission. There were not many legal gambling sites in Germany, and the process of obtaining a license was extremely hard and complicated.

  • However, gaming and gambling activities in online casinos in Germany are now monitored and controlled at a higher level. At least this is the case for most of Germany. In the period between 2008 and 2012, gambling in the country was declared illegal by the federal government.
  • You've asked a question about online gambling legislation. Online Gambling legislation has a Facebook profile, and the relationship status is: It's Complicated.

Germany hascome one important step closer to legalizing and regulating online gambling andpoker. This comes as the heads of Germany’s sixteen states have reportedly reachedan agreement to legalize online casino games and poker beginning July 1st,2021.

According to local media, Germany’s heads of state have agreed to the regulations that will govern online gambling and poker. The agreement must now be ratified by state parliaments and the European Commission in order to take effect.

Strict Regulations Incoming

Germany’s plan to proceedwith regulation does not involve opening the flood gates to unlimited onlinegambling on demand. German lawmakers have agreed to implement regulations that willimpose significant restrictions on how online gambling is conducted in Germany.

Under the new state treaty,online gambling operators would be able to offer their services to playersacross the country for the first time ever under a completely regulated environment.Regulators seek to strike a balance between offering a regulated alternative toplayers while not subjecting the country to out of control gambling.

German lawmakers describethe new treaty as a “limited” form of gambling that would serve as a suitablealternative to the rampant online gambling that already occurs via unregulatedoffshore operators.

Some of the keyrestrictions within the proposal include:

  • Deposit Limits: Players are to be restrictedto depositing no more than €1,000 per month across all licensed operators.
  • Maximum Slot Wagers: Online slots are tobe limited to a €1 per spin wager limit and no autoplay function.
  • Advertising Restrictions: Ads for onlinepoker and casino games would be prohibited between 6 AM and 9 PM.
  • In-Play Betting Limits: One of the morerestrictive proposals related to sports betting would limit in-play betting towagers on the outcomes of the end result or next scoring play. Furthermore,this would only be allowed for low-scoring games such as football and hockey. In-playbetting on high-scoring games such as tennis and basketball would berestricted.

German Gambling Plan Met with Mixed Reactions

German media associationVAUNET, which represents roughly 150 media outlets, has come out stronglyagainst the proposed advertising restrictions.

As Affiliate Insider reported, VAUNET Chairman Matthias Kirschenhofer explained the advertising restriction would simultaneously hurt broadcasters and harm the government’s ability to channel players away from unlicensed offshore operators:

Is Online Betting Illegal In Germany

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Advertising is the financing basis for private broadcasters and an instrument that steers legal games in the gaming market, the regulatory goal of our Federal States.

On the other hand,gambling opponents find the advertising restrictions to be too lax. Addictionresearch Tobias Hayer of the University of Bremen said he is afraid that liberalizingthe market will expand the reach of gambling and result in more problemgambling.

Here’s what he told Zeit Online:

I think it is absolutely not a good idea that, for example, Bundesliga football clubs with the logo of a betting provider on their jerseys are walking around or that betting providers are the primary sponsors of a club.

Speaking on therestrictions imposed on in-play betting, German Sports Betting Associationpresident Mathias Dahm expressed concerns that the restrictions would lead to puntersseeking black market alternatives. Under the proposed restrictions, he says,licensed operators would only be able to provide 25-30% of today’s total volumefor live betting. Dahms estimates these restrictions will result in €3-€4billion in lost sales.

Controversy aside, the German gambling industry could use the stability of a new gambling treaty after years of back-and-forth going back to 2008. Lawmakers have attempted to license some forms of online gambling, block others and generally create a strong sense of uncertainty that has provided fodder for offshore gambling operators. A stable regulatory regime moves Germany one step closer to channeling players to regulated providers.

All 16 German states have agreed to allow online casinos and poker rooms to continue operations provided that they start complying with the nation’s new gambling laws scheduled to take effect on July 1, 2021.

The current gambling laws that are being enforced in Germany are temporary. Come July 1, 2021, the new gambling laws will allow legal online casinos, sportsbooks, and poker rooms to operate legally.

However, heads of the 16 German states agreed that existing online casinos and poker rooms servicing German punters can continue operating as long as they abide by the new gambling laws set out in the draft legislation before they become permanent. Gaming operators will need to ensure they are compliant by October 15, 2020 or they will face penalties.

Some of the more notable rules in the draft legislation include a hard cap on how much punters can deposit in any given time period, in addition to a set max wager of €1 on all online slots.

Agreement Struck to Weaken Illegal Operators

While the national agreement was struck in a timely fashion, not all German states did so enthusiastically.

The states of Bremen and Saarland were particularly troubled by what they held were a lack of player protection measures on the draft legislation. The heads of both states also hesitated in promising illegal gambling operators a free pass for their years of operations in Germany.

Ultimately, both states capitulated, citing fears that holding up the progress of the new gambling laws could lead to illegal gambling operators gaining a further advantage in the legal German gambling market in 2021.

Third State Treaty Allows Online Sports Bets

Germany’s “Third State Treaty on Gambling” came into effect in early 2020 as a temporary stopgap to ensure a smooth transition to the state’s online gambling industry, scheduled for launch in 2021. The treaty allows online sports betting in Germany, and names the Darmstadt Regional Council and the Hessian Ministry of the Interior as the chief authorities in the processing and approval of sports betting license applications.

In April 2020, the Dardmstadt Administrative Court prevented the granting of sports betting licenses due to a case brought forward by Vierklee, a gambling operator based out of Austria, which contended that Germany’s licensing process was opaque and gives preferential treatment to certain companies.

The Darmstadt Regional Council has appealed this ruling in the Kassel Administrative Court, which has yet to decide on the issue.

Online Gambling Banned In Germany

Carolyn is our legislation expert, with a background in law she is able to cover the current state of gambling around the world