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Germany submits new proposed gambling legislation to European Commission

Germany notifies new Gambling State Treat to European Commission

by Kally in Industry | 25 May 2020

The online gambling industry continues its growth, expanding into many regions across the globe.

Germany is one of the many countries deciding to update outdated laws and regulations to welcome online gambling activities.

The country recently submitted its proposed new gambling legislation to the European Commission for approval.

State approval required

This fourth State Treaty on Gaming is expected to come into force on the 1st of July 2021. With the new legislation in place, online casino gaming will be legal in the country for the very first time.

The fourth editions of the State Treaty on Gambling, (Glücksspielstaatsvertrag 2021 – GlüStV 2021), can only come into force once it has been approved by 13 of the 16 federal states within the country. The most important approval is that of the State Chancellery of Saxony-Anhalt, which will host the new regulatory body formed by the legislation.

Upon approval, all states will be bound by the terms of the State Treaty until the 31st of December 2028. Only after this date will states have the option to withdraw from the Treaty by giving a year’s notice.

New German Gambling Regulations

The new law will bring substantial changes to German gambling regulations to create a safer, better-regulated gambling environment.

Once the legislation is in place Online Casino, Poker and Sports Betting will all be legal within German states. These online gaming activities, although legal, will be available under severe restrictions.

There will be a €1,000 deposit limit on all online gambling activities. For sports bettors there will be a limit on in-play wagering, restricting it to the final result and next goalscorer markets. Online slots players can place maximum bets of €1 per spin only. These spins must last 5 seconds tops and jackpots will be strictly prohibited. More restrictions include maximum stake limits on all poker games.

In terms of table games, there will be an option for each state to maintain a monopoly or open it to private operators. If they opt for the latter, only one license may be granted within its borders.

Other regulations include removing the requirement for an internet or TV advertising license, detailed player protection and advertising plans, a safe server system to enhance supervision over gambling activities and tightening the grip on illegal gambling activities.

According to the new proposed regulations, all advertisements for gambling activities will be time-restricted. Advertising can take place from 9 pm to 6 am with no advertising allowed during live sports broadcasts. Affiliate marketing partners won’t be able to make any deals based on revenue, customer deposits or customer activity.

Another key focus in the new regulations is player protection and as such, all German online casino operators need to develop 'social concepts'. These detailed explanations show how operators plan on protecting players against the possibility of problem gambling and prevent underage gambling.

A new day is dawning

The new State Treaty has been sent to the European Commission for approval with the intention for it to be signed this summer. Once the Commission has approved it, at least 13 of the 16 federal states will need to ratify it.

With all the necessary approvals in place, the new German State Treaty will come into force on 1 July 2021. Bringing with it plenty of legal online casino, poker and sports betting options for German locals to enjoy.

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