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Germany’s new State Treaty on Gambling 2021 with new restrictions

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Germany’s new State Treaty on Gambling 2021 is in full effect and new restrictions are weighing heavily on operators.

The online casino industry continues to grow and expand into new regions across the globe.

Germany is one of the latest to legalise online gambling for the first time but with some heavy restrictions.

The restrictions include stake limits, payment limits and other restrictions that have a severe impact on operators.

New regulatory changes

As of 1 July 2021, the State Treaty on Gambling 2021 is fully in effect. With these new restrictions active there are various new changes for players and operators to keep in mind.

When it comes to payments, the number of methods available for deposits is limited. Players will be able to make a deposit via direct debit, bank transfer or payment card issued in their name. Payments via cash or vouchers are no longer available.

The tax on online poker and online slot turnover is set at 5.3% which according to the DSWV will only be damaging to the new regulatory change objectives. The idea of including the tax on individual player stakes rather than entire operator earnings could lead to more issues.

The primary issue is that taxing individual stakes means that players get taxed for each individual spin. Furthermore, the slot games will come with a 1 spin cap and five-second speed per spin.

The table games will be kept separate with lotteries having the option of monopoly over the product.

While there is a great improvement in the state, the new State Treaty on Gambling could also sink its own efforts at increasing regulatory effectiveness.

Revenue falls, operators leave

The new legislation allows legal gameplay but there are various restrictions and changes that make the legal landscape more difficult for operators.

Big names such as LeoVegas have seen slower progress in revenue with the new regulatory changes. While some operators follow the new regulatory changes, others refuse to change or adapt.

Before the implementation of the legislation came into full force it was already easy to see the split. Following regulatory requirements, those with licensing in place hope the authorities will do something regarding the unlawful operators.

However, players are flocking to sites that do not follow requirements. These sites provide more freedom in terms of betting speed, spin caps and payment methods.

There is a clear shift in the market and a break between lawful and unlawful operators. With players flocking towards illegal sites, there is less revenue for legal sites. The various legal restrictions also drastically impact the total revenue possible from players within the region.

For many online casinos these changes lead to more than limiting gameplay, it leads to revenue loss. As such, various operators have started shifting their focus towards other more viable markets. While there are loyal players in Germany, being legally accessible in Germany is no longer viable for many operators.

The future of gambling in Germany

Online gambling regulations in Germany is on a clean-up mission, attempting to take control of the gaming industry and increase player safety.

There are various restrictions in place to enhance responsible gambling efforts and anti-money laundering efforts.

It's unclear if the impact of the new State Treaty will lead to a growing market or result in online casino operators leaving.

Online casino games are now finally legal in the state, but it is easy to see the heavy restrictions are dampening the celebrations regarding the big changes.

Published: July 6, 2021

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Article by Stelly

CasinoWow Contributor

Hey there! I am Stelly, and happily, I'm part of CasinoWow's content team. It excites me to be able to write and share with all gambling enthusiasts unbiased reviews and news that contribute to the gambling community and industry. Thankfully, I also have the chance to help you make an informed choice for casino brands and games, as well as provide interesting guides and news.

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