Published: March 1, 2020

Germany: Regulation of online casinos & gambling 2021

Regulation of online casinos & gambling 2021

Glücksspiel Regulierung Staatsvertrag

28.02.2020 - It took a long time, but now the time has come: The federal states have taken on online gambling and at least have already set clear cornerstones with regard to regulation. Based on these cornerstones, real regulation is to be created until the new State Treaty on Gaming comes into force next summer. But what could this look like in the future? This article takes a look at that.

The key points at a glance

Basically, it must be said that the planned regulation or the current discussions about it do not come from a blue sky. The current state treaty on gaming ends in the summer of next year and must therefore be renegotiated. Since the gambling industry has changed massively since 2012, it is now simply logical that online gambling is finally recognized as a separate area of ​​gambling and recognized through regulation. So far, internet gambling has only appeared indirectly in the state treaty - in the form of online offers from the individual state lottery companies.

However, since online gambling has developed in relation to casinos and sports betting, regulation is necessary. It is important for all sides. For the players who finally want to play safe, but also for the providers who want to get out of their gray area. The situation is similar with online casinos in Austria , where the regulation of foreign providers is also not fully regulated. Casino Austria AG is the only licensee in Austria. Other providers operate with EU licenses, which also means a gray area.

Germany now wants to tackle this problem, which, however, also entails restrictions. The plans at a glance:

Licenses - there should be German licenses in the course of the regulation. So far, there are only those from Schleswig-Holstein, which in turn only apply to the federal state. Hence in the advertisements the note "Only for citizens from ...". Anyone who visits the website as a non-Schleswig-Holsteiner will be redirected to the .com website, which operates with an EU license. Uniform licensing in Germany would be easier for all parties, ultimately, of course, it would generate income for the federal states or the state.

Limit - gamblers should only be allowed to deposit 1,000 euros per month. Received winnings that are used in turn are not counted. It is unclear how the limit is monitored and how it is calculated. Is it related to a provider? Are all providers where a player has an account added together? Do sports betting or online lottery outlets also count?

Multiple accounts - the simultaneous playing with multiple accounts should be prohibited. So far, casinos have prevented players from gambling on multiple accounts at the same time, for example at poker tables. It is unclear how this will be followed up soon. Are players not allowed to have second accounts at another casino? In this case, comparisons regarding the odds would be impossible.

Lock file - a central lock file is set up, in which players with unusual behavior are included or in which they can enter themselves. A similar lock file already exists in the local casino area.

Central authority - a new gambling authority is created, which is responsible for monitoring the casinos, licensing and also for the lock file. No other responsibilities are known.

Nationalization - this point is not one of the cornerstones, but is always mentioned. Since any missing revenue from state gambling has to be compensated, it is being considered to nationalize the "big game", ie roulette, poker and blackjack.

In view of the key points, it becomes clear that the ministers of the federal states still have a long way to go. Monitoring the deposit limits, the lock files or multiple accounts could also lead to data protection problems.

Sports betting also affected?

Sports betting is part of gambling and is therefore also covered by the plan. The above points also apply to sports betting, with two special features:

Limit - Sports betting providers licensed in Schleswig-Holstein already work with a 1,000 euro limit per month. This point was discussed in the last State Treaty on gaming, but did not appear in the final document.

Multiple accounts - if these are generally not possible, it would be a disaster. Anyone who has bet once knows that odds differ depending on the bookmaker. Without multiple accounts, it is not possible to compare the offers with each other.

However, sports betting is extremely hard in other respects:

Prohibition of live betting - these should be massively restricted and partly prohibited. To what extent something remains in the end is unclear. It is certain that the event bets, ie "Who gets the first yellow card, who gets the first throw-in / corner, who gets the first shot on goal" should be prohibited. It remains to be seen whether the mere guessing of results is still possible during a football game .

Advertising - advertising should also be regulated . This affects several sides in sports, because sports fans know that bookmaker advertising is everywhere. No football game can do without it, often the teams could not wear a jersey without presenting a betting provider.

Nevertheless, sports betting providers will now finally receive their German license.

How secure is the implementation?

What is certain is that an agreement must be reached by next summer, because without this the worst case scenario could arise: Each federal state sets up its own rules. At the same time, the ministers will also have to deal with local gambling, because here too regulations have to be changed if online gambling is permitted. The distance rule in particular is being put to the test here, because it is difficult to understand why an arcade has to be 350 meters away from the playground when adults can play on the playground using a smartphone.

In view of the need for data collection, however, a lot of clarification will probably still be necessary. Experts are already raising their finger on data protection, because lock files and limit monitoring in a central authority would mean the transfer of significant amounts of data. The same applies to multiple accounts and "worrying gaming behavior".

The public sticking point is currently the seat of the gaming authority . Several federal states want to know about the authority. This and all other topics will be discussed from March. It remains to be seen what will come of it and which key points will ultimately appear in the contract.

  Conclusion - the implementation will be interesting

Of course, key points should first of all be seen as mere key points that need to be discussed. But since the federal states sometimes have very different points of view, the discussions surrounding the proposals could still be very interesting. There is not much time left, because the State Treaty on Gaming must start in summer 2021.

https://www.arcor.de/article/Unterhaltung-Games-News--Regulierung-von-Online-Casinos---Gluecksspiel-2021/hub01-home-unterhaltung-games-news/9141619

© Public Gaming Research Institute. All rights reserved.