Germany recently submitted an overhauled version of its gambling guidelines to the EU, as ahead of planned implementation scheduled for 2021.
This is the fourth edition of Germany’s state treaty on gambling, also known as the Glücksspielneuregulierungstaatsvertrag, and must be approved by 80 percent of the 16 federal states before it is enforced. Most importantly, it has to be ratified by the country’s Sachsen-Anhalt Chancellery, which is expected to host the body that will be formed based on this legislation.
Once the legislation is approved, Germany will be bound until the 31st of December 2028. Once this date elapses, the state will be free to withdraw from the treaty provided it gives notice a year in advance.
The country’s regulator will be in charge of the expanded gaming space, in which Sports betting will be licensed alongside poker and casino. But, the products will be available under substantial restrictions.
The regulator imposed a €1000, which also covers the third state treaty and will only cover sports betting. The treaty will be extended to include all other products. Controversial betting controls like restrictions to in-play betting and next goal score markets will also be featured in the new rules.
As for slots, punters will be allowed a maximum of €1, while a single spin will last about 5 seconds on average. Besides, not more jackpots will be allowed. Operators offering poker will be required to apply maximum stake limits.
As for table games, stated will be allowed the freedom to maintain monopolies. If they wish to open up the market to private operators, they will only be allowed to issue a single license per land-based casino inside their jurisdictions.
If the Glücksspielneuregulierungstaatsvertrag is approved by states and the EU Commission, a licensing window lasting one year from the date of implementation will begin. It will run until the 1st of July, 2021.
Licensing fees to be paid by the operators will be determined based on projections from the amounts that will be wagered. Operators with turnover up to €40m will pay at least 2 percent of the amount wagered. Those whose stake ranges between €40m and €65m will have their fees increased to €80000, plus a 1.6 percent stake for amounts over €40m.
This amount will go up to €120000 for stake ranging between €13m to €65m, plus a 1 percent of overall turnover in amounts exceeding €65m.
The amount further increases to €185000 for all operators that handle €130m. Operators will also pay 0.6 percent on any amount above €130m.
As had been previously announced, all advertising will be restricted between 9 pm and 6 am. No advertising will be allowed during a live sports broadcast. Within Sporting venues, adverts can be shown on pitch side board or regalia.
The new legislation presented to the EU Commission on the 18th of May, and will not be subjected to a standstill that will end on the 19th of August.
The heads of the various states in Germany ratified the Glücksspielneuregulierungstaatsvertrag last March, which is the first step in the sanction process. The Glücksspielneuregulierungstaatsvertrag is expected to supersede the third state treaty, which currently implements a purely sportsbook-based model. Attempts to pass a similar treaty in the past has been plagued by a lot of issues.
Once the notice of the legislation reached the EU Commission, it triggered a serious response that cautioned that any short term implementation means it would be improbable to make the gambling space appealing to operators.